Case Law[2025] ZAGPPHC 1176South Africa
Afriforum NPC v National Energy Regulator of South Africa and Others (2025/137620) [2025] ZAGPPHC 1176 (31 October 2025)
High Court of South Africa (Gauteng Division, Pretoria)
31 October 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Afriforum NPC v National Energy Regulator of South Africa and Others (2025/137620) [2025] ZAGPPHC 1176 (31 October 2025)
Afriforum NPC v National Energy Regulator of South Africa and Others (2025/137620) [2025] ZAGPPHC 1176 (31 October 2025)
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sino date 31 October 2025
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
Case Number:
2025/137620
(1) REPORTABLE: YES/NO
(2) OF INTEREST TO OTHER
JUDGES: YES/NO
(3) REVISED.
DATE: 31 October 2025
SIGNATURE
In
the application of:
AFRIFORUM
NPC
Applicant
and
NATIONAL
ENERGY REGULATOR OF SOUTH AFRICA
1
st
Respondent
SOUTH
AFRICAN LOCAL GOVERNMENT ASSOCIATION
2
nd
Respondent
ESKOM
HOLDINGS SOC LIMITED
3
rd
Respondent
AMAHLATHI
LOCAL MUNICIPALITY
4
th
Respondent
BLOUBERG
LOCAL MUNICIPALITY
5
th
Respondent
DIHLABENG
LOCAL MUNICIPALITY
6
th
Respondent
DIPALESENG
LOCAL MUNICIPALITY
7
th
Respondent
DITSOBOTLA
LOCAL MUNICIPALITY
8
th
Respondent
eDUMBE
LOCAL MUNICIPALITY
9
th
Respondent
KAMIESBERG
LOCAL MUNICIPALITY
10
th
Respondent
MERAFONG
CITY LOCAL MUNICIPALITY
11
th
Respondent
MOSSEL
BAY LOCAL MUNICIPALITY
12
th
Respondent
CITY
OF EKURHULENI LOCAL MUNICIPALITY
13
th
Respondent
CITY
OF CAPE TOWN LOCAL MUNICIPALITY
14
th
Respondent
192
LOCAL MUNICIPALITIES
15
th
– 181
th
Respondents
JUDGMENT
LABUSCHAGNE
J
THE
ORDER:
Having
read the papers and having heard counsel
IT
IS ORDERED
[1]
That the forms, service and time periods provided for
in the Uniform
Rules of Court are dispensed with and the application is heard on the
basis or urgency in terms of rule 6(12).
[2]
NERSA’s implementation of the public participation
process of
the notice and comment procedure elected by it by, as contemplated in
section 4(1) and (3) of the Promotion of Administrative
Justice Act,
3 of 2000 (“PAJA”) utilised during the consideration and
approval of the financial year 2025/2026 municipal
tariff
applications (“the approvals”) is declared invalid in
terms of section 172(1)(a) of the Constitution.
[3]
In terms of section 172(1)(b) of the Constitution, and
despite the
declaration of invalidity set out in paragraph 2 above, the approvals
are not set aside.
[4]
A rule
nisi
is issued, returnable on 18 November 2025, calling
on any respondent to show cause why the following order should not be
made:
4.1
NERSA is directed to timeously comply with its obligations
as public
entity, and as envisaged in section 35(c)(ii) of the Municipal
Finance Management Act, to timeously provide information
and
assistance to municipalities to enable municipalities to prepare
their budgets in accordance with the processes set out in
Chapter 4
of the MFMA. In pursuance of the aforesaid, the following
directions are issued:
4.1.1
By 31 January of every year, NERSA must give municipal licensees
written notice of bulk
of wholesale tariffs at which municipal
licensees shall purchase electricity from Eskom, or any other
licensed generator, for the
next financial year;
4.1.2
The notice referred to above shall in addition require municipal
licensees to submit their
electricity tariff applications by no later
than 30 March of every year, failing which they run the risk of no
tariff increase
being approved;
4.1.3
NERSA is directed to comply with the provisions of section 4 of PAJA,
and the regulations
published in terms thereof, in respect of
whichever procedure for public participation it chooses, in terms of
section 4 of PAJA,
for considering and approving municipal
electricity tariff applications;
4.1.4
For purposes of meaningful public participation, NERSA is directed to
publish every municipal
electricity tariff application along with its
cost of supply study for that particular financial year, in a manner
that makes it
accessible to the public, provided that, where a
municipal electricity tariff application does not include a cost of
supply study
for the financial year, NERSA must specifically state
the absence of such costs of supply study;
4.1.5
NERSA is directed to finalise the process of considering the
municipal electricity tariff
applications timeously received and
communicate its decisions on or before 05 May of every year;
4.1.6
NERSA must simultaneously also publish all of the respective
decisions it reached on the
municipal electricity tariff applications
received; and
4.1.7
NERSA may not unilaterally extend or deviate from the aforesaid
timeframes for applications
timeously received without good cause
and, if established, with prior notice to the parties affected.
4.2
Every municipality that submits an electricity tariff application
must take all reasonable steps to ensure that the public
participation process NERSA chooses regarding municipal tariff
applications
is brought to the attention of the public within its
jurisdiction.
[5]
AfriForum shall forthwith cause this order to be served:
5.1
On all participating respondents’ attorneys of record,
where
such attorneys have been appointed, by email;
5.2
On the Chief Executive Officer of Eskom, by the sheriff;
and
5.3
On the municipalities in
Annexure FA2
to the notice of motion,
other than those in paragraph 5.1 above, by email sent to the
municipal managers.
[6]
NERSA is ordered to pay the costs of the application,
including the
costs consequent upon the employment of two advocates, on Scale C,
where so employed
REASONS
[1]
This matter served as a special allocation, having commenced
in the
urgent court during October 2025. Due to the length of the
papers the matter could not be heard in the week of 14
October 2025
and was placed for hearing on 28 October 2025.
[2]
AfriForum applied on the basis of urgency for an order
on the
following terms:
“
1.
Dispensing with the forms and service provided for in the rules and
hearing
the application as a matter of urgency.
2.
That the first respondent’s public participation process in
the
form of a notice and comment procedure as contemplated in
section
4(1)
and (3) of the
Promotion of Administrative Justice Act 3 of
2000
, which process was utilised during the consideration and of the
FY2025/2026 Municipal Tariff applications, be declared invalid.
3.
That the retrospective effect of the declaration of invalidity in
paragraph 2 above be suspended.
4.
That the first respondent is interdicted and restrained as follows:
4.1
The first respondent must publish the notice calling for
municipalities to submit
their electricity tariff applications by no
later than 10 November every year;
4.2
The above notice must require municipalities to submit their
electricity tariff
applications by no later than 15 January each
year;
4.3
The first respondent must comply with the provisions of the
Promotion
of Administrative Justice Act 3 of 2000
and the regulations published
under the Act, in whichever procedure for public participation it
chooses for consideration and approving
municipal electricity tariff
applications;
4.4
The first respondent must publish every electricity tariff
application along
with its costs of supply study, whether new or
existing, in a manner that makes it accessible to the public for the
purpose of
public participation;
4.4.1
The first respondent must specify, whenever municipal electricity
tariff applications are published
for public review, where an
application does not include the cost of supply/study;
4.5
That the first respondent must finalise the process of considering
the municipal
electricity tariff application received and reach a
decision on or before 30 March every year;
4.6
The first respondent must publish all of the respective decisions it
reached
on the municipal electricity tariff applications received;
4.7
The first respondent may not extend or deviate from the
aforementioned timeframes
unilaterally, without prior notice and
without good cause being shown.
5.
Every municipality that submits and electricity tariff application
must take all reasonable steps to ensure that the public
participation process the first respondent chooses regarding
municipal
electricity tariff applications is brought to the attention
of the public within its jurisdiction.
6.
In the alternative to paragraphs 4 and 5 above, and in the event that
the honourable court does not deem the interdict to be just and
equitable, it be declared that the Constitution requires the public
participation process embarked upon for the consideration and
approval of municipal electricity tariff applications to be
procedurally
rational, which requires the first respondent to meet
the following minimum criteria:
6.1
The first respondent is to publish the notice calling for
municipalities to submit their electricity tariff
applications by no
later than 10 November every year;
6.2
The above notice is to require municipalities to submit their
electricity tariff applications by no later
than 15 January each
year;
6.3
The first respondent is to comply with the provisions of the
Promotion of Administrative Justice Act 3 of 2000
and the regulations
published under the Act, in whichever procedure for public
participation it chooses for considering and approving
municipal
electricity tariff applications;
6.4
The first respondent is to publish every electricity tariff
application along with its costs of supply/study,
whether new or
existing, in a manner that makes it accessible to the public for the
purpose of public participation;
6.4.1
The first respondent is to specify, whenever municipal electricity
tariff applications are published
for public review, where an
application does not include a cost of supply/study;
6.5
That the first respondent is to finalise the process of considering
the municipal electricity tariff application
received and reach a
decision on or before 30 March every year;
6.6
The first respondent is to publish all of the respective decisions it
reached on the municipal electricity
tariff applications received;
6.7
The first respondent may not extend or deviate from the
aforementioned timeframes unilaterally without prior
notice and
without good cause being shown.
7.
That it be declared that section 152 of the Constitution requires
that every municipality that submits an electricity tariff
application is to take all reasonable steps to ensure that the public
participation process the first respondent chooses regarding
municipal electricity tariff applications is brought to the attention
of the public within its jurisdiction.
8.
That the first respondent be ordered to pay the costs of the
application,
including the costs of two counsel, and in the event
that any of the other respondents unsuccessfully opposing the
application,
that such respondents and the first respondent be
ordered to pay the costs of the application, including the costs of
two counsel,
jointly and severally, the one paying the other to be
absolved.
9.
Such further or alternative relief as the court may grant.”
[3]
The application was opposed by the first respondent (NERSA).
It
was also initially opposed by the City of Ekurhuleni, Mogale City and
the City of Johannesburg. The City of Cape Town merely
challenges the
dates suggested in paragraphs 2 and 4 of the notice of motion
referred to above.
[4]
SALGA initially also opposed but indicated that its primary
concern
lies in the date referred to in paragraph 4.1 of the notice of motion
(i.e. 10 November of every year).
[5]
The City of Cape Town suggests that the date in paragraph
4.2 of the
notice of motion (15 January of each year) is too early and that this
date should be moved to 20 March.
[6]
The City of Cape Town further suggests that a further
milestone be
inserted in the suggested timeline, i.e. that NERSA must determine
the electricity tariff for bulk sales by Eskom
to its customers by
the end of January of every year.
[7]
In the course of argument AfriForum accepted the comments
and
suggestions of those municipalities that intended opposing.
This resulted in an amended time frame being mooted. However,
as the
respondents were brought to court on the initial notice of motion and
have not participated, or have abided, a rule nisi
was suggested.
[8]
The applicant and the City of Cape Town lament the consistent
lateness of NERSA in determining and publishing the tariff for bulk
sales of electricity by Eskom to its customers and the late
response
to municipalities’ applications to NERSA for approval of their
municipal tariffs. The latter applications depend
on the tariff
determination of bulk sales by ESKOM as the municipal tariff consists
of a NERSA approved mark up on the ESKOM tariff.
[9]
The dilemma is that the financial year of every municipality
commences on 1 July of every year and by 1 July every municipality
must adopt a budget. The draft budget needs to be published
at
least 90 days before 1 July. As the sale to end users of
electricity is one of the pillars of municipal revenue, the need
for
clarity on the Eskom bulk tariff and NERSA’s response to
municipal tariff applications, points to a timeframe within
which
NERSA must act so that municipalities can lawfully adopt budgets.
[10]
As it is a statutory requirement that municipalities may only charge
an approved tariff, the timing of NERSA’s approvals is vital.
[11]
The consistent lateness of NERSA’s responses has adversely
affected
the public’s right to participate in the finalisation
of firstly budgets, and secondly municipal electricity tariffs as an
anchor component of budgeting for municipal revenue.
[12]
NERSA adopted a notice and comment procedure in terms of section 4(1)
and 4(3) of PAJA. That decision is not reviewable in terms of
PAJA and is not challenged. The applicant however contends
that
the implementation of that notice and comment procedure is
constitutionally invalid because of the consistent lateness and
inadequacy of NERSA’s notifications on the applications for
approval of municipal tariffs for electricity sales.
[13]
The time within which the public could comment was reduced to such an
extent that in certain instances there was no participation at all.
There are a number of instances. One will suffice. In the case
of
Mogale City, its application was published on 19 June 2025, and NERSA
took a decision approving the tariff the next day. There
was no
public participation as none was possible.
[14]
Further, NERSA has adopted the position that the cost of sale studies
that accompany the tariff applications are confidential, and they
were not published so that the public could comment. Further,
contrary to Regulation 18 of the PAJA Regulations, NERSA does not
publish its notices in the Government Gazette and two newspapers,
and
in more than one official language. It merely publishes on the NERSA
website and social media, citing the other methods prescribed
as
outdated.
[15]
The application is opposed by NERSA, who contends that it sets
deadlines
for municipalities by which dates applications for approval
of municipal electricity tariffs need to be submitted to NERSA for
approval. However, the bulk of municipalities are not adhering
to the deadlines and this in turn delays NERSA’s decisions.
[16]
NERSA contends that it is forced to deviate from the prescribed
public
participation processes envisaged by section 4 of PAJA and the
PAJA regulations due to circumstances forced upon it by tardy
municipalities.
As PAJA permits deviations, NERSA denies any
wrongdoing.
[17]
NERSA contends that the relief sought is not urgent, that it has
substantially
complied with its obligations and that the relief
sought will cause judicial overreach. It asserts its status as a
specialist regulator
to which the court should show deference in
determining its own timetable. This defence was raised by the
City of Ekurhuleni
and the City of Johannesburg as well, but was not
advanced in argument
THE REGULATORY
FRAMEWORK
[18]
An electricity tariff is determined in terms of section 15(1) of the
Electricity Regulation Act, 4 of 2006 and consists of a cost of
supply by an efficient licensee together with a reasonable return.
This section determines the ESKOM application for its annual
allowable revenue, which in turn determines the ESKOM tariff. It is
also the basis for a municipal tariff application which likewise
consists of cost of supply study and a reasonable mark-up.
[19]
The NERSA process of approving tariffs runs in tandem with the
process
of approving municipal budgets. Both processes require public
participation. The regulatory framework envisages cooperative
governance
by municipalities and NERSA in respect of public
participation in the process of approval of budgets and municipal
electricity
tariffs. Administrative tardiness has muddied the
alignment that is required to ensure the lawful adoption of municipal
budgets.
[20]
Central to this matter is section 35 of the Municipal Finance
Management
Act (MFMA) which reads in part:
“
Promotion of
co-operative government by national and provincial institutions
35.
National and provincial departments and public entities must –
…
(c)
provide timely information and assistance to municipalities to enable
municipalities –
(i)
…
(ii)
to prepare their budgets in accordance with the processes set out in
Chapter 4 of this Act.”
[21]
The Council of a municipality must for each financial year approve an
annual budget before the start of the financial year (section 16(1)
of the MFMA). The mayor of the municipality must table
the
annual budget at a Council meeting at least 90 days before the start
of the budget year (section 16(2) of the MFMA).
[22]
The budget therefore needs to be approved by Council no later than 30
June as the financial year commences on 1 July.
[23]
A municipality’s electricity tariffs are an essential component
of the municipal budget. As the electricity tariffs have to be
approved by NERSA, such approval must be timeous and the information
pertaining to it is to be provided within a timeframe that permits
the municipality to adopt a budget before 1 July.
[24]
Section 15(1) of the ERA stipulates that NERSA’s setting
of tariffs:
“
(a)
must enable an efficient licensee to recover the full cost of its
licensed activities, including a reasonable
margin or return.”
[25]
This has become known as the cost of supply methodology.
[26]
Municipalities are precluded from charging any tariff for electricity
other than that determined or approved by NERSA (section 15(2)).
[27]
The national government had formulated its Electricity Pricing Policy
(EPP) in Government Notice 1398 of 19 December 2008. The
document reflects a number of policy positions of which Policy
Position 2 and Policy Position 23 are relevant. Policy Position
2 provides that:
“
(a)
Electricity tariffs must reflect the efficient cost of rendering
electricity services as accurately as practical;
(b)
The average level of all the tariffs must be set to recover the
approved revenue requirements;
and that
(c)
The tariff structures must be set to recover the costs as follows:
(i)
The energy cost for a particular customer category;
(ii)
The network usage cost for a particular customer category; and
(iii)
Service costs associated therewith.”
[28]
Policy Position 23 requires electricity distributors to undertake the
cost of supply study every five years.
[29]
NERSA for a number of years employed a benchmarking methodology where
a specific year’s tariff was merely adjusted by a markup,
rather than with reference to a cost of supply study. In
Nelson
Mandela Bay Business Chambers NPC and Another v National Energy
Regulator and Others
(63393/2021) [2022] ZAGPPHC 778 (20 October
2022), Kubushi J put an end to the benchmarking process and directed
that cost of supply
methodology had to be followed as required by
section 15(1)(a) of the ERA and the EPP.
[30]
NERSA has also formulated the cost of supply framework as well as a
How
To guide.
[31]
As far as public participation is concerned, section 4(1) of PAJA
deals
with administrative action that materially and adversely
affects the rights of the public. In such an instance the
administrator
may decide to either hold public enquiries or a notice
and comment procedure may be followed, or a combination of both
(section
4(1)(a), (b) and (c)).
[32]
Section 4(3) of PAJA determines that where an administrator decides
to
follow a notice and comment procedure, as in this instance, the
administrator must:
32.1
Take appropriate steps to communicate the administrative action to
those likely
to be materially and adversely affected by it and call
for comments from them.
32.2
Consider any comments received.
32.3
Decide whether or not to take the administrative action, with or
without changes;
and
32.4
Comply with the procedures to be followed in connection with notice
and comment
procedures, as prescribed.
[33]
The regulations issued in terms of PAJA require the following:
33.1
The information concerning the proposed administrative action must be
published
by way of notice in the Government Gazette and a newspaper
or newspapers which collectively are distributed throughout the
Republic.
This relates to administrative action that affects
the rights of the public throughout the Republic, as in this instance
(regulation
18(1)(a)).
33.2
Regulation 18(2) acquires the notice to include an invitation to
members of
the public to submit comments with regard to the proposed
administrative action within a date not earlier than 30 days from the
date of publication of the notice (regulation 18(2)(a)).
33.3
The notice published in terms of regulation 18(1) must contain
sufficient information
about the proposed administrative action to
enable members of the public to submit meaningful comment (regulation
18(3)(a)).
33.4
The notice must be published in at least two official languages and
must take
into account the language preference or usage in the
province or area concerned (regulation 19).
[34]
AfriForum contends that the public participation process for 2025 is
defective and constitutionally invalid. The reasons include
that:
34.1
Cost of supply studies did not accompany notices to the public,
thereby depriving
them from an opportunity of making meaningful
comments.
34.2
Insufficient notice was given.
34.3
The notices were not published in newspapers, but on NERSA’s
website
and were not published in at least two official languages.
URGENCY
[35]
The applicant’s case for urgency is that it cannot obtain
effective
redress in the normal course as the issues it raises cannot
be brought to court in time before a new financial year commences,
rendering the relief it seeks moot. NERSA contends that the urgency
is self-created due to a gap in the period between the AfriForum
letter of demand of 27 June 2026 and launching the application seven
weeks later.
[36]
The facts demonstrate that NERSA was in respect of certain
municipalities
still in the process of approving their tariff
applications at that time. Some approvals were only communicated
after the new financial
year had commenced on 1 July. While an
applicant in an urgent application must explain any delay in
launching its urgent application,
this matter shows that the facts
were still emerging. The matter is complex, and it involves every
municipality in the country.
In allowing time for respondents to
respond, generous time frames were permitted as the urgency dictated
such an approach.
[37]
Taking the aforesaid into account I am satisfied that the application
is urgent as the applicant will not obtain substantial redress in due
course.
COST OF SUPPLY STUDIES
[38]
The position adopted by NERSA regarding the confidentiality of cost
of
supply studies needs to be assessed. A tariff application and the
decision on it comprises two parts- the cost of supply and a
reasonable return. The cost of supply is in respect of an efficient
licensee. This is a topic on which the public have a right to
be
heard.
[39]
The purpose of a cost of supply study is to demonstrate efficiency as
licensee. And secondly it serves the purpose of transparency- i.e.
being open to scrutiny. In
AfriForum NPC v NERSA [2024] ZAGPPHC
638 (8 July 2024)
the following is said at par [7] per De Vos
AJ:
“
The cost of
supply study serves a dual function. The first is to ensure that
municipalities efficiently distribute electricity.
If municipalities
are charging more than the cost of supply study indicates is
necessary, they are not providing services efficiently.
Municipalities' licenses are subject to them being efficient
licensees. A cost of supply study allows NERSA to test the efficiency
of the municipality's electricity distribution. The second is to
ensure a standardised and transparent process that end-users can
engage with. These twin principles of efficiency and transparency
underpin the requirement of a cost of supply study.”
[40]
The history of local government has demonstrated public anger and
protest,
sometimes violent, regarding poor service delivery in many
parts of the country. There is understandable public interest, if not
apprehension, about efficient use of public resources. When a
municipality applies to NERSA for a tariff approval it must include
a
cost of supply study as the basis for its case for a reasonable
return. The municipality can have no expectation of confidentiality
in respect an official document indicating how it intends spending
public funds in supplying an electricity service to rate payers.
The
cost of supply study is a public document intended for public and
official scrutiny. This is demonstrated by the fact that
none of the
municipalities has contended that their cost of supply studies are
confidential and should be kept away from the public.
[41]
How NERSA could unilaterally declare a cost of supply study as
confidential
is beyond concerning. It did not publish this policy in
advance. It is a public watchdog that has, due to this private
policy,
kept the public in the dark about matters that directly
concern the public.
[42]
NERSA is a specialist public entity to which judicial deference is
owed
in determining tariffs. But it is also duty bound to act in
accordance with the law. The inadequacy of notice to the public in
respect of tariff applications, by not including the cost of sales
studies, is self-evident. The impression created is that
NERSA
has become so adept that it does not require, or value, public
participation in respect of cost of sales studies. This would
be
contrary to the law, as section 4 of PAJA requires the comments by
the public to be taken into consideration.
SUBSTANTIAL COMPLIANCE
[43]
The PAJA Regulations are binding on NERSA. NERSA’s decisions
need
to be communicated in the prescribed manner. Regulation 18
prescribes a 30 day period for public comment. It requires
publication
in the Government Gazette and two newspapers in more than
one official language.
[44]
NERSA has unilaterally and as a policy decided not to comply with the
PAJA regulation 18. It has resorted to self-help, no doubt well
intended, but contrary to the law. To contend that there was
substantial
compliance because notice was given, is an argument that
cannot be countenanced where a deliberate decision not to adhere to
the
law lies at the root (see
Firstrand Bank Ltd v Briedenhan
2022
(5) SA 215
(EC) at [52]
).
[45]
Where modernisation is the reason for non-compliance, a change in the
regulations is a matter for the legislature to consider (Ibid. par
[54]). Where a lawful deviation can be motivated as permissible
policy, an application to the court to sanction such conduct is a
minimum legality requirement for a regulator enforcing licence
conditions on licensees. It is not a law unto itself but is empowered
to regulate in terms of empowering provisions.
[46]
In light of the manifold deficiencies in the implementation of the
notice
and comment procedure for the FY2025/2026 it cannot pass
constitutional muster and must be declared invalid in terms of
section
172(1)(a).
JUST AND EQUITABLE
REMEDY
[47]
The court has a wide discretion in respect of a just and equitable
remedy
in terms of section 172(1)(b) of the Constitution. AfriForum
in its notice of motion seeks an order suspending the declaration of
invalidity to preserve the status quo. However, it is not clear for
how long the suspension would be in place and pending what.
The
uncertainty regarding the import of the declaration of invalidity
could trigger consequences that an intended holding pattern,
preserving the status quo, was meant to avoid.
[48]
The determination of a corrective remedy is a multi-layered enquiry
in
which the public interest is a primary consideration. In
All
Pay Investment Holdings (Pty)(Ltd) v CEO, SASSA
2014 (4) SA 179
(CC)
the following was stated in the context of pensions:
“
[32] This
corrective principle operates at different levels. First, it must be
applied to correct the wrongs that led to the
declaration of
invalidity in the particular case. This must be done by having due
regard to the constitutional principles governing
public procurement,
as well as the more specific purposes of the Agency Act. Second, in
the context of public-procurement matters
generally, priority should
be given to the public good. This means that the public interest must
be assessed not only in relation
to the immediate consequences of
invalidity — in this case the setting-aside of the contract
between SASSA and Cash Paymaster
— but also in relation to the
effect of the order on future procurement and social-security
matters.
[33] The
primacy of the public interest in procurement and social-security
matters must also be taken into account when
the rights,
responsibilities and obligations of all affected persons are
assessed. This means that the enquiry cannot be one-dimensional.
It
must have a broader range.”
[49]
The approval of a municipal budget, based on an approved electricity
tariff, has knock on effects. Third parties, like financiers, take
financial decisions based on the approved budget and regulate
their
affairs accordingly. It is therefore important not to destabilise
municipal revenue and to cause uncertainty in the financial
markets.
I therefore find it more appropriate not to set aside NERSA approvals
of tariffs, despite the declaration of invalidity.
CONCLUSION
[50]
Meaningful public participation, as required by the process in
section
4 of PAJA was fundamentally undermined by late notifications,
inadequate information and non-compliance with regulation 18 of the
PAJA Regulations. NERSA’s implementation of its notice and
comment procedure in terms of section 4 of PAJA is therefore
constitutionally invalid.
[51]
However, despite the declaration of invalidity, the NERSA approvals
of
municipal tariffs are not set aside.
[52]
In the premises the order set out above is issued.
LABUSCHAGNE
J
JUDGE
OF THE HIGH COURT
DATE
OF HEARING
: 28 OCTOBER 2025
DATE
JUDGEMENT DELIVERED
: 31 OCTOBER 2025
APPEARANCES:
COUNSEL
FOR APPLICANT:
ADV
BOTHA SC
ADV
HUGO
INSTRUCTED
BY
:
HURTER SPIES ATTORNEYS
CONSEL
FOR RESPONDENTS
:
ADV MAKHAJANE
COJ
:
ADV SIBISI
INSTRUCTED
BY
:
SSM ATTORNEYS
SALGA
:
ADV TSATSAWANE SC
ADV
NKABINDE
INSTRUCTED
BY
:
HM CHAANE ATTORNEYS
CAPE
TOWN
:
ADV BREITENBACH SC
:
ADV REYNOLDS
INSTRUCTED
BY
:
TIMOTHY AND TIMOTHY ATTORNEYS
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