Casting, Forging and Machining Cluster of South Africa (NPC) and Others v National Energy Regulator of SA and Others (92792/2019)
Casting, Forging and Machining Cluster of South Africa (NPC) and Others v National Energy Regulator of SA and Others (92792/2019) [2022] ZAGPPHC 927 (25 November 2022)
NERSA's approval of City Power's 2019/2020 electricity tariffs was unlawful, irrational, and invalid. The regulator failed to require or consider a cost of supply study, relied on outdated and generic financial data, and did not assess the costs for different customer categories. This contravened the requirements of the Electricity Regulation Act and the Electricity Pricing Policy, which mandate cost-reflective tariffs and avoidance of undue discrimination. The benchmarking methodology used was a guideline, not binding law, and NERSA retained discretion to depart from it where its application…
Source excerpt
- Promotion Of Administrative Justice Act
- Electricity Tariff Regulation
- Cost Reflective Tariffs
- Municipal Powers And Duties
- Judicial Review
- Cross Subsidisation