Case Law[2023] ZAGPPHC 280South Africa
United Democratic Movement and Others v Eskom Holdings SOC Ltd and Others [2023] ZAGPPHC 280; 005779/2023 (5 May 2023)
Headnotes
Summary: The practice of “loadshedding” by Eskom to save the integrity of the national energy grid impacts prejudicially on, inter alia, Constitutional rights to health, security and education. The infringement of these rights justify judicial intervention, but to such a limited extent that the principle regarding the separation of powers is not overstepped.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## United Democratic Movement and Others v Eskom Holdings SOC Ltd and Others [2023] ZAGPPHC 280; 005779/2023 (5 May 2023)
United Democratic Movement and Others v Eskom Holdings SOC Ltd and Others [2023] ZAGPPHC 280; 005779/2023 (5 May 2023)
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sino date 5 May 2023
HIGH
COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 005779/2023
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE:
05 MAY 2023
SIGNATURE:
In
the matter between:
UNITED
DEMOCRATIC MOVEMENT
First
Applicant
INKATHA
FREEDOM PARTY
Second
Applicant
ACTION
SA
Third
Applicant
BUILD
ONE SOUTH AFRICA
Fourth
Applicant
DR
LUFUNO RUDO MATHIVHA
Fifth
Applicant
DR
TANUSHA RADMIN
Sixth
Applicant
LUKHONA
MNGUNI
Seven
Applicant
SOUTH
AFRICAN FEDERATION OF TRADE UNIONS
Eighth
Applicant
NATIONAL
UNION OF METAL WORKERS OF SOUTH AFRICA
Nineth
Applicant
HEALTH
AND ALLIED INDABA TRADE UNION
Tenth
Applicant
DEMOCRACY
IN ACTION NPC
Eleventh
Applicant
SOUTHERN
AFRICAN INSTITUTE FOR RESPONSIVE AND ACCOUNTABLE GOVERNANCE
Twelfth
Applicant
WHITE
RIVER NEIGHBOURHOOD WATCH
Thirteenth
Applicant
THE
AFRICAN COUNCIL OF HAWKERS AND INFORMAL BUSINESSES
Fourteenth
Applicant
SOUTH
AFRICAN UNEMPLOYED PEOPLE’S
Fifteenth
Applicant
SOWETO
ACTION COMMITTEE
Sixteenth
Applicant
MASTERED
SEED FOUNDATION
Seventeenth
Applicant
NTSIKIE
MGAGIYA REAL ESTATE
Eighteenth
Applicant
FULA
PROPERTY INVESTMENTS PTY LTD
Nineteenth
Applicant
and
ESKOM
HOLDINGS SOC LTD
First
Respondent
MINISTER
OF PUBLIC ENTERPRISES
Second
Respondent
DIRECTOR
GENERAL: DEPARTMENT OF PUBLIC ENTERPRISES
Third
Respondent
PRESIDENT
OF THE REPUBLIC OF SOUTH AFRICA
Fourth
Respondent
MINISTER
OF MINERAL RESOURCES AND ENERGY
Fifth
Respondent
DIRECTOR-GENERAL:
DEPARTMENT
OF
MINERAL RESOURCES AND ENERGY
Sixth
Respondent
NATIONAL
ENERGY REGULATOR
OF
SOUTH AFRICA
Seventh
Respondent
GOVERNMENT
OF THE REPUBLIC
OF
SOUTH AFRICA
Eighth
Respondent
CASE
NO: 003615/2023
DEMOCRATIC ALLIANCE
Applicant
and
NATIONAL ENERGY
REGULATOR OF SOUTH AFRICA
First Respondent
ESKOM HOLDINGS SOC
LIMITED
Second Respondent
PRESIDENT
OF THE REPUBLIC OF SOUTH AFRICA
Third
Respondent
MINISTER
OF PUBLIC ENTERPRISES
Fourth
Respondent
MINISTER
OF MINERAL RESOURCES AND ENERGY
Fifth
Respondent
MINISTER
OF FINANCE
Sixth
Respondent
MINISTER
OF FORESTRY, FISHERIES AND THE ENVIRONMENT
Seventh
Respondent
MINISTER
OF TRADE, INDUSTRY AND COMPETITION
Eighth
Respondent
SOUTH
AFRICAN LOCAL GOVERNMENT ASSOCIATION
Nineth
Respondent
PREMIER,
WESTERN CAPE
Tenth
Respondent
PREMIER,
NORTHERN CAPE
Eleventh
Respondent
PREMIER,
EASTERN CAPE
Twelfth
Respondent
PREMIER,
KWA-ZULU NATAL
Thirteenth
Respondent
PREMIER,
MPUMALANGA
Fourteenth
Respondent
PREMIER,
LIMPOPO
Fifteenth
Respondent
PREMIER,
GAUTENG
Sixteenth
Respondent
PREMIER,
FREE STATE
Seventeenth
Respondent
PREMIER,
NORTH WEST
Eighteenth
Respondent
THE
GOVERNMENT OF THE REPUBLIC
OF
SOUTH AFRICA
Nineteenth
Respondent
MINISTER
FOR COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
Twentieth
Respondent
CASE
NO:
B38/2023
In
the matter between:
TEBEILA
INSTITUTE
Applicant
and
NATIONAL
ENERGY REGULATOR OF SOUTH AFRICA
First
Respondent
ESKOM
HOLDINGS SOC LIMITED
Second
Respondent
MINISTER
OF MINERAL RESOURCES AND ENERGY
Third
Respondent
Summary
:
The practice of “loadshedding” by Eskom to save the
integrity of the national energy grid impacts prejudicially on,
inter
alia, Constitutional rights to health, security and education.
The infringement of these rights justify judicial intervention,
but
to such a limited extent that the principle regarding the separation
of powers is not overstepped.
ORDER
1.
Pending the final determination of PART
B of the application in case no: 005779/2023, in respect of users of
electricity, whether
supplied directly by Eskom Holdings SOC Limited
("Eskom") or by local authorities, the Minister of Public
Enterprises
shall take all reasonable steps within 60 days from date
of this order, whether in conjunction with other organs of state or
not,
to ensure that there shall be sufficient supply or generation of
electricity to prevent any interruption of supply as a result of
loadshedding to the following institutions and/or facilities:
1.1
all "public health establishments"
as defined in the
National Health Act 61 of 2003
, including publicly
owned hospitals, clinics, and other establishments or facilities;
1.2
all
"public schools" as defined in the
South African Schools
Act 84 of 1996
;
1.3
the "South African Police Service"
and "police stations" as envisaged in the
South African
Police Service Act 68 of 1995
.
2.
The second, fourth, fifth and eighth
respondents, jointly and severally, the one paying, the other to be
absolved, shall pay the
applicants’ costs of this part of the
application, such costs to include the use of three counsel, where
employed.
3.
The costs in regard to the first
respondent are reserved for determination at the hearing of PART B of
the aforesaid application.
JUDGMENT
This
matter has been heard in open court and is otherwise disposed of in
terms of the Directives of the Judge President of this
Division. The
judgment and order are accordingly published and distributed
electronically.
DAVIS,
J (with COLLIS J AND NYATHI J)
Introduction
[1]
“
Loadshedding”
is a process whereby Eskom Holdings SOC Ltd (Eskom) effectively cuts
off the supply of electricity to areas
of the country on a rotational
and scheduled basis. It is done on different levels (currently
ranging from level 1 to level
8) and is done to protect the integrity
of the national energy grid when the demand for electricity exceeds
the capacity generated
by Eskom from time to time.
[2]
The
application in case no 005779/2023 (the UDM application) is not about
the stopping or termination of loadshedding, but in PART
A thereof,
the applicants seek relief aimed at reducing the prejudicial impact
of loadshedding on public health facilities, police
stations and
schools which do not have sufficient alternative energy sources
available to them. The applicants claim that
without such
energy sources the Constitutional rights of citizens to healthcare,
security and education are infringed upon.
The dispute is about
how to remedy these infringements and whether it is permissible for a
court to order that it be done, having
regard to the principle of
separation of powers between different spheres of government.
The
applicants in the UDM application
[3]
Having regard
to the identity of most of these applicants, the application has a
distinct political flavor to it. All the
applicants, however,
seek to vindicate fundamental human rights, either in their personal
or representative capacities. The
representative applicants are
the United Democratic Movement (UDM), the Inkatha Freedom Party,
Action SA, Build One South Africa,
the South African Federation of
Trade Unions, the National Union of Metal Workers of South Africa,
the Health and Allied Indaba
Trade Union, Democracy in Action NPC,
Southern African Institute for Responsive and Accountable Governance,
White River Neighbourhood
Watch, the African Council of Hawkers and
Informal Businesses, South African Unemployed People’s
Movement, the Soweto Action
Committee, Mastered Seed Foundation and
two companies, Ntsikie Mgagiya Real Estate (Pty) Ltd and Fula
Property Investments (Pty)
Ltd.
[4]
These
applicants were joined by three individuals in their personal
capacities, being the fifth, sixth and seventh applicants.
The
fifth applicant is Dr Lufuno Rudo Mathiva who is an Adjunct
Professor: Critical Care Medicine at Chris Hani Baragwanath Academic
Hospital, being the largest hospital in Africa. The sixth
applicant is Dr Tanusha Ramdin, a doctor and Head of Peadiatrics
and
Neonatal Unit at Charlotte Maxeke Academic Hospital. The
seventh applicant is Lukhona Mnguni, a policy analyst.
[5]
The
respondents in the UDM application are Eskom, the Minister of Public
Enterprises (the DPE Minister), the Director-General: Department
of
Public Enterprises (DPE), the President of the Republic of South
Africa (the President), the Minister of Mineral Resources and
Energy
(the DMRE Minister), the Director-General of the Department of
Mineral Resources and Energy (DMRE), the National Energy
Regulator of
South Africa (NERSA) and the Government of the Republic of South
Africa (insofar as it may be competent to cite the
government in this
generalized fashion).
The
UDM application itself
[6]
Initially
the UDM application started out as one of urgency and, although the
urgency complained of by the applicants remained as
part of a
continuing wrong for as long as loadshedding continues, the matter
was, after case management by the Deputy Judge President
of this
Division, referred for hearing by a full court of this Division in
terms of
section 14(1)(a)
of the
Superior Courts Act 10 of 2013
.
The UDM application was to be heard jointly with two other
applications in case numbers 003615/2023 and B38/2023 but the
particulars of those matters are not relevant at this stage. It
was further directed that, after the exchange of affidavits
and Heads
of Argument, paragraphs 3, 4, and 5 of PART A of the UDM application
be heard separately on dates agreed to by the parties
and that PART B
be heard at a later date or dates together with the other
applications. This separation was from the outset
envisaged in
the UDM applicants’ Notice of Motion.
[7]
This judgment
therefore only concerns the hearing in respect of paragraphs 3, 4 and
5 of PART A, of the UDM application which was
heard over the course
of three days. In the amended Notice of Motion in this
application, the following relief was sought
in this part:
“
3.
In respect of users of electricity that are supplied electricity
directly by Eskom
Holdings SOC Limited (“Eskom”), the
Minister of Public Enterprises and/or Eskom shall ensure that there
shall be no
interruption of supply as a result of loadshedding to the
following institutions and/or facilities:
3.1
all “public health establishments” as defined in the
National Health Act 61 of 2003
, including publicly owned hospitals,
clinics, and other establishments or facilities;
3.2
all “public schools” as defined in the South African
School Act 84 of 1996;
3.3
“electronic communications networks” as defined in the
Electronic Communications Act 36 of 2005
, and the infrastructure
necessary for the operation of such networks, and any other
infrastructure necessary for the operation
of mobile phone and
internet networks;
3.4
the “South African Police Service” and “police
stations” as envisaged
in the
South African Police Service Act
68 of 1995
, including facilities and infrastructure providing
municipal police services;
3.5
any entity responsible for the provision of water in terms of the
National Water Act 36 of 1998
; and
3.6
“micro”, “very small” and “small”
businesses as provided
for in schedule 1 of the National Small
Enterprises Act 102 of 1996, trading in perishable goods such as meat
and milk and which
depend on electricity for the storage of such
goods.
4.
In respect of users of electricity that are supplied electricity by a
municipality
where Eskom has entered into an agreement with that
municipality, Eskom and/or the Minister of Public Enterprises shall
ensure
that any instruction to that municipality to reduce
electricity and/or commence or continue loadshedding includes an
instruction
to ensure the exemption on the terms mentioned in
paragraph 3 above.
5.
Alternatively only to prayers 3 and 4 above that Eskom and the
Minister of Public
Enterprises must take immediate steps to procure
alternative sources of electricity and/or energy for all the
establishments and
facilities contemplated in paragraph 3 of this
amended notice of motion, including but not limited to solar panels
and generators
”
.
[8]
At a late
stage in the proceedings, that is, at the conclusion of hearing
argument on the first day thereof and after all the parties
had
already previously delivered extensive answering and replying
affidavits and Heads of Argument, the applicants indicated that
they
will seek leave to further amend the relief sought. It was
further indicated that this amendment and the consequences
thereof
would be debated amongst the applicants (which were separated into
two groups, the third applicant being one such group
and the
remainder of applicants the other group) before being presented to
the respondents. The respondents were similarly
divided with
Eskom constituting one grouping and the remainder of respondents
another grouping (the government respondents) while
NERSA had
delivered a notice to abide and took no part in the proceedings
concerning PART A of the application (other than by way
of counsel
with a watching brief).
[9]
Despite the
fact that the day after the first day of hearing was a public holiday
(Human Rights day on 21 March 2023), it turned
out that only the
discussions amongst the applicants themselves and with Eskom
regarding the proposed amendment could be finalized
on that day. The
first occasion that the remainder of the respondents got to know of
the extent of the proposed amendment, was
shortly before the
continuation of argument on 22 March 2023. Not only did this
result in a standing down of the matter for
purposes of allowing
those respondents to peruse and consider the proposed amendments and
for their legal practitioners to obtain
instructions in respect
thereof, but it also resulted in an opposed hearing of an oral
application to amend the Notice of Motion,
which was done by way of
the presentation of a proposed draft order. This draft order
contained a detailed proposed structural
interdict which the
respondents (except for Eskom and Nersa) said would require further
consultation and affidavits. This would
have resulted in an
inevitable and costly delay in the finalization of a matter in
respect of which argument had already partially
been heard. In
the end, the amendment was refused and an ex-tempore judgment was
delivered in this regard. The remainder
of the arguments in
respect of the application then proceeded over the next two days.
[10]
Although the
amendment was not affected, the applicants elected not to pursue
relief against Eskom, excluding it from the paragraphs
of the Notice
of Motion already quoted in paragraph 7 above. Eskom’s
counsel therefore remained in attendance, but
took no further part in
the argument, save to a limited extent in respect of the issue of
costs.
The
nature of the relief
[11]
Before
proceeding further, it is necessary to say something about the nature
of the relief eventually sought by the applicants as
this may have an
impact on determining whether the requirements for the relief sought
were met. The applicants couched the relief
as being pending the
determination of PART B of their Notice of Motion. Notionally this
would make the compelling orders which
they seek interim in nature as
they may still be amended or varied by this court
[1]
.
However, the applicants were constrained to concede that, once
electricity is supplied, by whatever alternate means, that
event has
passed and no amount of revisiting will undo that. In that sense,
even though the orders sought might be in the form
of an interim
interdict, the effects thereof are permanent in nature. This might
oblige the applicants to satisfy the requirements
for a final
interdict, being the establishment of a clear right, an act of
interference and the absence of another remedy
[2]
.
This also accords with what the applicants actually seek,
namely “
a
permanent cessation of an unlawful course of conduct or state of
affairs
”
[3]
,
the state of
affairs
being certain hospitals, police stations and schools being left
without electricity during loadshedding. We shall therefore
refer to the satisfaction of both these sets of requirements in the
course of our judgment.
The
obligation to provide electricity
[12]
As
a starting point, the applicants founded their argument in respect of
the respondents’ obligation to provide electricity,
on the
resultant infringement of fundamental Constitutional rights in the
event that electricity is not sufficiently or consistently
supplied.
[13]
In
the first instance, the right to access to health care services is
enshrined in section 27 (1)(a)
[4]
of the Constitution. The fifth and sixth applicants have
detailed the dire consequences for a healthcare facility should
it
not receive an uninterrupted supply of electricity. These
consequences include life-threatening impacts on hospital operations,
medical instability, and patient safety. Peadiatric and
neo-natal units literally require the “lights to be on”,
critical organs and medical supplies need to be maintained at optimal
temperatures, operating theatres need uninterrupted power
supplies,
life-supporting and monitoring equipment need electricity to run
effectively and accurately and so the list goes on.
In the most
dire circumstances, the right to life, enshrined in section 11 of the
Constitution becomes threatened.
Section 27(2)
[5]
creates an obligation not to interfere with that right, which is what
occurs when loadshedding is implemented.
[14]
The
next instance relied on, is the right to education, enshrined in
section 29(1)
[6]
of the
Constitution. The right to basic education protected in this
section is unqualified. In order to realise this
right, which
has enormous historical significance in South Africa
[7]
is to prevent schools from shutting down or closing, even
temporarily, as a result of loadshedding. The consequences of
interrupted (or no) power supply are particularly keenly felt in
rural and township schools. Often, due to no alternate sources
of electricity being available (generally in contrast to private
schools), these schools close down for a particular day, thereby
not
only depriving leaners of education, but often also of their only
guaranteed meal of the day. Iniquities created by our
country’s
past injustices are, by the simple act of loadshedding, being
perpetuated against a vulnerable segment of society.
[15]
The
applicants also argued that the right to freedom and security of the
person, enshrined in Section 12
[8]
of the Constitution creates an obligation to ensure that the South
African Police Service is able to perform their functions.
When
police stations are shut down or have to close due to a lack of
electricity brought about by loadshedding, this obligation
is not
fulfilled.
[16]
The
applicants also relied on our courts having recognized that, even if
there may not be a right to electricity mentioned in the
Constitution
in so many words, other fundamental rights such as those mentioned
above, can only be exercised or manifested by way
of an uninterrupted
supply of electricity
[9]
.
It has also been held that the state has a positive duty to take
reasonable steps to realise those rights
[10]
.
[17]
The
obligations of the State have further been statutorily prescribed and
detailed. In terms of section 5(1) read with section
5(2)(ii)
[11]
of the National
Energy Act 34 of 2008 (NEA) the Minister for Mineral Resources and
Energy (the DMRE Minister) is obliged to take
all reasonable steps to
ensure that the State provides “energy services” to “all
the people” in the country.
In terms of this
statutory obligation the key to unlocking electricity generation is
held by the DMRE Minister.
[18]
In terms of
the
National Energy Regulator Act 40 of 2004
, NERSA was established
with the duty to regulate the supply of electricity, piped gas and
petroleum pipeline structures.
[19]
Eskom
is, in turn, licensed by NERSA in terms of
sections 7
,
14
and
21
[12]
of the Electricity Regulation Act 4 of 2006 (the ERA) to supply and
distribute electricity.
[20]
Eskom,
even though licensed by NERSA, may not generate and distribute
electricity off its own bat, it may only do so in terms of
a
“shareholders compact” entered into between the DPE
Minister and its board in terms of section 6(4) of the Eskom
Conversion Act 13 of 2001 (the Conversion Act). In
Eskom
Holdings Soc Ltd v Vaal River Development Association (Pty) Ltd
(
Vaal
River)
[13]
at
par 73 the Constitutional Court has described the relationship
between Eskom as a State Owned Corporation and its shareholder,
the
State, represented by the DPE Minister as follows: “
The
Conversion Act did not privatize Eskom. Upon conversion, the
state was Eskom’s sole shareholder. Its conversion
required Eskom and the Minister of Public Enterprises to enter a
Shareholder compact. The Shareholder compact is defined
in
section 1 of the Conversion Act to mean “the performance
agreement to be entered into between Eskom and the Government
of the
Republic of South Africa”. In doing so, the Minister was
required to take account of the “developmental
role of Eskom”
and “the promotion of universal access to and the provision of
affordable electricity, taking into account
the cost of electricity,
financial sustainability and the competitiveness of Eskom
”.
[21]
In summary
then, the collective framework for the generation, supply and
distribution of electricity and the upkeep of the infrastructure
to
do so, is as follows: The DMRE Minister authorizes the generation of
electricity including plans for the expansion thereof and
dictates
policy in respect of thereof. Eskom performs the actual acts of
generation, supply and distribution in terms of
its performance
agreement with the State, represented by the DPE Minister and does so
in terms of licences issued to it by NERSA,
who in turn prescribes
conditions or limitations to these licences by way of published
codes. It is within these parameters that
the various stages of
loadshedding are determined. We shall refer to these more fully
when dealing with the reasons why loadshedding
is experienced.
[22]
It is by way
of this collective framework that the respondents are to comply with
their respective statutory and Constitutional
obligations.
Have
there been breaches of the Constitutional obligations?
[23]
The evidence
placed before the court by Eskom Group Chief Executive Officer, Mr De
Ruyter, indicated the following: load shedding
is the controlled
reduction of electricity demand. It is implemented by
disconnecting “certain points” on the
transmission and
distribution networks on the national electricity grid. Load
shedding is employed when electricity demand
exceeds the supply of
electricity to avoid a collapse of the electricity grid. Such a
collapse would result in a complete lack
of supply across the whole
country (referred to as a “blackout”). Restoration of the
supply of electricity after a
blackout could take days or even
weeks. During the period of a complete blackout, the country as
a whole would suffer immense
human suffering and economic harm.
It would result in the shutdown of water supply and sewerage
treatment, the shutdown of
telephone and internet services, payment
services, fuel and diesel distribution and impact on food supply and
the rendering of
medical services.
[24]
As already
mentioned, Eskom operates under licenses granted to it by NERSA.
The transmission and distribution licenses oblige
Eskom to apply the
South African Grid Code System Operation Code (the Grid Code).
Apart from the licensing requirement, the
ERA also statutorily
obliges Eskom to adhere to the Grid Code as well as another code, the
NRS 048-09 Code (the NRS Code).
This lastmentioned code
prescribes the Practice for Energy Load Reduction. These codes
oblige Eskom to maintain a minimum
critical load. A minimum critical
load is that required to maintain the operational integrity of the
grid “
to
avoid a direct and significant impact on the safety of people, the
environment and … plants … as agreed in writing
by the
licencee
”.
Eskom complies with these codes in maintaining a minimum critical
load by way of various means, of which it says
loadshedding is used
as a means of last resort.
[25]
Why then is
loadshedding implemented if it is only to be used as a last resort?
Eskom explains, through a series of affidavits
from its Acting Group
Executive-Generation, its Chief Financial Officer, its General
Manager of Transmission, its Senior Manager
of Climate Change and
Sustainable Development in Eskom’s Risk and sustainability
Division, its Emerging Response Manager:
Eskom Distribution
Solutions, Research Testing and Development in the Office of the
Chief Operation for Excellence in Eskom’s
Distribution
Division, that the need for loadshedding exists because the demand
for electricity currently exceeds Eskom’s
ability to supply
electricity by anything between 4 000 to 6 000 megawatts
(mw) at virtually any given time.
[26]
Why is there
insufficient supply of electricity? To answer this question
Eskom began its explanation in 1990. It claims
that since then
there has been insufficient investment in new energy capacity, a
responsibility vested in DMRE Minister, in terms
of the sections of
the ERA already referred to above. Eskom pointed out that in
1990 only 35% of South African households
had access to electricity.
As part of a Reconstruction and Development Program, the
electrification of an additional 2.5
million households by 2000, was
achieved, resulting in South Africa achieving the highest annual
electrification rate in the world.
[27]
To maintain
this, it was established that Eskom’s generation capacity
surplus would be fully utilized by 2007. To clarify:
by that
time the demand for electricity would equal the maximum available
supply. New generation capacity would therefore
be needed. This
was explained to cabinet (and approved by it) in terms of the “1998
White Paper”. This set out
intended structural reforms
for Eskom, including the unbundling of its generation, transmission
and distribution divisions as well
as the commissioning of generation
capacity.
[28]
Despite its
acceptance, the 1998 White Paper was not implemented for some years
and in 2001 Cabinet took the decision that Eskom
was not allowed to
invest in new generation capacity “in the domestic market”.
This resulted in Eskom’s
surplus generation decreasing over the
years to about 8.2% in 2004. Later in that year Eskom was
finally permitted to initiate
plans for the construction of two new
generation units, being Kusile and Medupi.
[29]
A typical
power station constructed in the 1980’s took about 5 – 8
years to construct. This was typically for
a two-unit power
station. Medupi and Kusile were 6 unit stations. In the
16 years since the last power station had
been constructed, Eskom had
significantly lost its skills and capacity to build large scale power
stations. Due to this, the use
of “virtual designs” in
the tendering process, the appointment of the Tokyo based
conglomerate Hitachi Ltd in 2007,
who had no experience working with
South African coal and a vast number of design errors, resulted in
the first unit at Medupi
only being commissioned in 2015 and the last
unit only last year (2022). The first unit for Kusile was only
commissioned
in 2017 and the power station is to this day not yet
fully commissioned.
[30]
In simple
terms, the Government had been warned (and had accepted) that it
would run out of a generating capacity by 2008 (which
had happened)
and in the 15 years since then, has failed to remedy the situation.
Added to this, is the detailed evidence
of Eskom’s Acting Group
Executive: Generation regarding catastrophic failures suffered by
both Kusile and Medupi which contributed
substantially to the overall
lack of generation capacity.
[31]
In addition to
the above, Eskom has admitted that, in order to attempt to supply
electricity at a continuous level, it ran it coal-powered
plants
harder than was advisable and deferred maintenance programs during
which plants would be taken off-line. It is only
fairly
recently that maintenance programs have been re-implemented.
The result is, however, frequent break-downs in non-maintained
equipment and unavailability of units during repairs and maintenance.
[32]
In summary,
Eskom explained that, in addition to the historic failure to maintain
its power generating fleet and the governmental
failure to create new
generation capacity, its inability to render sufficient electricity
to the country was further hampered by
the lack of cost-effective
tariffs, the low reliability of the aging generation fleet, the
previous management’s refusal
to conclude renewable energy
independent power producer contracts, regulatory obstacles, high
municipal debt and alleged state
capture, corruption and sabotage
damage.
[33]
Having stated
all the above, Eskom conceded that “
load
shedding causes human suffering and has a detrimental impact on a
variety of constitutionally protected rights, including those
the
applicants identify
”.
[34]
The
representative of Eskom’s shareholder (the State), being the
DPE Minister, conceded that he had the oversight responsibility
over
Eskom as one of the public enterprises listed in Schedule 2 to the
Public Finance Management Act 1 of 1999 (the PFMA).
The
Minister stated that the accounting authority of Eskom is its board
(appointed by the DPE Minister) who submits information
to him.
Apart from the DPE Minister’s executive oversight over Eskom’s
corporate structure in general and financial
and strategic plans, he
did not “…
have
control over its day-to-day activities … such as
implementation of load-shedding, or the activities required by the
relief contemplated in paragraphs 3, 4, and 5 of the amended notice
of motion
”
[14]
.
The Minister is a founding member of the National Energy Crisis
Committee (the NECOM) which had been established and is
chaired by
the President. The establishment of NECOM has resulted in a
National Energy Action Plan having been published
in January 2023,
which includes the unbundling of Eskom’s transmission,
generation and distribution structures (which had
been proposed in
the 1998 White Paper referred to earlier). While further
stating that although the DPE itself will be involved
in the
implementation of the National Energy Action Plan “…
to
arrest the prevailing energy crisis …
”,
it is the DMRE Minister who is responsible for the “…
determination
of new energy capacity needed to ensure the continued uninterrupted
supply of energy and the types of energy sources
from which
electricity must be generated
”.
[35]
The DMRE
Minister in turn aligned himself with the position of the President
set out in a separate affidavit and, in respect of
the current relief
under consideration stated the following: “
None
of the relief sought in prayers 3, 4 and 5 is directed at me or the
Department. However, the national regulatory framework
for the
electricity supply industry, the power to determine new generation
capacity needed to ensure the continued uninterrupted
supply of
electricity and the types of energy sources from which electricity
must be generated, and the percentages of electricity
that must be
generated from such sources, vests in me
”.
[36]
The
President, in his affidavit, commenced the opposition to the
application by stating “
none
of the government respondents have a Constitutional responsibility to
supply electricity to the people of the Republic
”.
He then proceeded to deal with presidential accountability and the
functioning of cabinet, who is accountable to
Parliament. After
objecting to relief claimed against the DPE Minister, who is not the
person or entity determining or implementing
loadshedding, the
President, with reference to the affidavits delivered on behalf of
Eskom, confirmed that the causes of loadshedding
and “shortfall”
of electricity capacity are the “
failure
to invest in new generation capacity in the 1990’s and early
2000’s, which investment would then have produced
sufficient
capacity to meet future demand
”
and “flaws” in the execution of the new build programs at
Medupi and Kusile as well as the “
failure
to conduct adequate maintenance in previous years as part of an
ill-conceived strategy to ‘keep the lights on’
without
regard for future consequences
”.
[15]
[37]
It is clear
that, whatever the President and his cabinet Ministers averred, the
consequences of policy decisions resulted in the
current need by
Eskom to continue to implement various levels of loadshedding.
The applicant’s deponents described
these consequences as
disastrous and it had been labelled in Heads of Argument as amounting
to a “human catastrophe”.
[38]
On a
conspectus of all of the above, we find that there had been repeated
breaches by the State of its Constitutional and statutory
duties and
that these breaches are continuing to infringe on citizens’
rights to healthcare, security and education. We therefore
find that
both a “clear right” and sufficient acts of interference
have been established by the applicants to satisfy
the first of the
two requirements for a final interdict. Even if the relief sought
were to be considered as only amounting to an
interim interdict, we
find that a
prima
facie
right has been established and that the interferences also create
apprehensions of irreparable harm in the form of prejudice to
the
right to life, particularly of vulnerable patients and the elderly in
public healthcare facilities as well as the other Constitutional
rights referred to earlier, thereby also satisfying the relevant
requirements for an interim interdict.
Remedy
and separation of powers
[39]
The
requirement that there is no other satisfactory remedy available for
an applicant than to approach a court, is shared by both
interim and
final interdicts
[16]
. Linked
to this, is the vexing question of whether the court, in granting
relief in the nature sought by the applicants, would
overstep the
line delineating the separation of powers.
[40]
Before
dealing with the issue of separation, it is apposite to note that,
once a court has found (as we have done here) that there
is a breach
or an infringement of Constitutional rights, a court is obliged to
act in order to remedy that breach or prevent further
infringements
[17]
. The
relief that a court may grant, should be “appropriate”.
In terms of the Constitution, such relief must be
construed
purposely
[18]
.
The
government respondents argue that there is no need to formulate or
grant any relief to alleviate the consequences of loadshedding
suffered by medical facilities, schools and police stations that do
not have any or sufficient electricity generating capacity
or
alternate sources of energy available, because the government already
has a set of plans in place and that any interference
with those
plans would therefore cross the line delineating the separation of
powers and would unjustifiably encroach upon the
domain of the
executive as a separate arm of government from the Courts.
[41]
The plans put
in place by the government to alleviate and hopefully end
loadshedding, were set out in the various affidavits of
the
respondents, including Eskom, and are contained in the National
Energy Action Plan referred to in par 32 above (the plan).
It caters
for short-, medium- and long-term solutions.
[42]
The
plan envisages five “interventions”: 1) “
Fix
Eskom and improve the availability of existing supply system
stability and increase generation capacity”
,
2) “
Enable
and accelerate private investment in generating capacity
”,
3) “
Accelerate
procurement of new capacity from renewables, gas and battery
storage”
,
4) “
Unleash
businesses and households to invest in rooftop solar”
and 5) “
Fundamentally
transform the electricity sector to achieve long-term energy
security
”.
[43]
The plan also
contains a “roadmap”, indicating more specifics relating
to the increase in generation capacity. This
roadmap looks like this:
[44]
It was
indicated that in this roadmap the actual capacity depended on
multiple factors including market responses. It was
also only
an illustrative timeline of when additional power could be expected,
and was subject to revision.
[45]
The government
respondents and Eskom argue that the granting of any of the relief,
would have a detrimental and “cascading”
effect on the
plan and the roadmap. They further argue that the procurement and
furnishing of emergency generating power or electricity
do not fall
within any of their respective duties or authorities and that such
supply would, for the classes of users identified
by the applicants,
be the responsibility of other state departments, such as the
departments responsible for health, education
or public works or
otherwise that the electricity supply fall within the ambit of
provincial or local governments.
[46]
This
court was from the outset acutely aware of the issue of separation of
powers. This principle, although it is not expressly
set out in so
many words in our constitution, is firmly part of our law. More than
two decades ago already, the Constitutional
Court in
Minister
of Health v Treatment Action Campaign
[19]
at par 98 and 99 has proclaimed as follows “
This
Court has made it clear on more than one occasion that, although
there are no bright lines that separate the roles of the Legislature,
the Executive and the Court from one another, there are certain
matters that pre-eminently within the domain of one or other of
the
arms of government and not the others. All arms of government
should be sensitive to this separation. This does not mean,
however,
that Courts cannot and should not make orders that have an impact on
policy”.
[47]
The
government respondents argue that the courts have also been warned
that ours is a democracy and not a “judiocracy”
and that
courts should “stay in their lane” and not usurp the
governance of the country
[20]
.
However,
when one has regard to the contents of the plan, the “interventions”
contemplated therein and the “roadmap”
mentioned earlier,
there is a marked difference between those policy and planning items,
both in their nature and in their magnitude
and costs and the limited
relief eventually applied for by the applicants. While the former
clearly fall within the executive sphere
of governance, the latter
merely deals with emergency relief from loadshedding in limited areas
where it is needed the most. Similarly,
where the former constitute
the exercise of public power separated from the powers of the court,
the latter relief are aimed at
vindicating infringements of
Constitutional rights brought about by the respective government
respondents’ failure to uphold
those rights. In similar fashion
as, for example in
Minister
of Health
(above) at par 101, we find that the granting of emergency relief, is
disconnected from policy-making or executive governmental
decisions
and is justifiable. It is further clear from the uncertain
nature of the contents of the roadmap and the timelines
thereof,
that, even if realized, it would not solve the urgent needs of the
installations mentioned in the applicants’ application.
In the circumstances of this case, we find that the granting of
such relief would fill a vacuum and would not breach the
separation
of powers principle
[21]
.
Conclusions
[48]
We therefore
conclude that the applicants have demonstrated that there have been
infringements of fundamental Constitutional rights,
brought about by
failures of organs of state and that appropriate relief is justified
and called for and that such relief can be
granted without crossing
the dividing line indicating where the separation of powers lie. We
find that this is the position, irrespective
of whether the relief is
characterised as interim or final. What then remains, is the
formulation of the “appropriate”
relief.
The
formulation of the relief
[49]
It
is trite that courts can grant compelling orders against organs of
state, such as, in this case, the DPE Minister
[22]
.
The fact that this minister has been targeted is
particularly apt in view of his concession that the department under
his executive leadership (the DPE) would be directly involved in the
implementation of the plan.
[50]
As already
mentioned, the applicants have, as the arguments have progressed,
limited the compelling orders that they seek to apply
only to the DPE
Minister, excluding Eskom. They have also referred to the fact that,
as far as they could ascertain, only 93 public
hospitals have not
been exempted from loadshedding. Exemptions from loadshedding are
apparently granted on application by Eskom,
but can only occur where
such exemption would not compromise the critical load factors
referred to above or the stability of the
national grid and where
embeddedness does not make such exemptions impossible. Embeddedness
will, for example occur, where
a healthcare facility is so “embedded”
in its surrounding network, that to exclude it would result in a
whole network
or suburb (or town even) having to be excluded, which
would result in no actual “load” being able to be shed,
i.e.
too much demand would remain, rendering the grid under pressure.
[51]
Individual
solutions therefore need to be devised in instances where the DPE
Minister cannot secure exemptions, such as the provision
of
generators or alternate energy supplies. The government respondents,
in a late further affidavit allowed by this court, claimed
that all
public hospitals have generators. The applicants, reliant on reports
from hospitals dispute this, but this court need
not solve that
dispute. The affidavits make it clear that to claim that hospitals
have generators and that there are technicians
looking after these
generators, is simply not good enough. These generators are often
insufficient, do not nearly replace the electricity
needed by
healthcare facilities to run all their equipment and often, despite
the alleged interventions, run out of diesel. The
evidence is further
that the hospitals have to buy their own diesel, depleting their
budgets and utilizing funds for diesel which
funds have been
earmarked for other essential expenses needed to run the hospitals,
such as salaries and medicines. This, to our
minds, also indicate
that the applicants have demonstrated that there are no effective
alternates for the beleaguered health facilities.
The police stations
and schools are even worse off, they simply close or shut down during
loadshedding.
[52]
The
President’s contention made in his answering affidavit that the
relevant parties could have and still can raise these
issues in
Parliament and need not have resorted to this Court to obtain relief,
simply has to be stated to indicate how inappropriate
such a remedy
would be. Even the affidavit produced by the government respondents
regarding the generation capacity of public hospitals
confirm that,
despite that issue having been raised by way of a Parliamentary
question earlier this year, it did not alleviate
the problem. The
circumstances of hospitals described earlier is clearly an untenable
situation, justifying a remedy in the form
of a compelling order. The
same applies to other public healthcare facilities, police stations
(of which there are an alleged 85
without alternate power) and public
schools.
[53]
Any
compelling order should be couched wide enough to provide for
different permutations and also be wide enough to leave it in
the
hands of the DPE Minister as to how he is going to rectify the
situation. The applicants claim that this can be achieved by
way of
an appropriate formulation of the alternate relief claimed in the
already above quoted prayer 5 of PART A of their application.
The
formulation of the relief should also allow the DPE Minister the
freedom to enlist other organs of state to assist him
in complying
with the order of this court, without prescribing or shackling the
Minister. Such enlistment would be a simple consequence
of the
“inter-relatedness” of organs of state
[23]
,
all who have the duty to promote the Constitution and to prevent
infringements of Constitutional rights.
Cost
implications
[54]
Of
course these interventions will cost money and it comes as no
surprise that the government respondents claim that they have not
budgeted for these expenses. There appear to be two answers to this:
firstly, on the figures produced by Eskom, when the costs
of the
alternative electricity supplies are compared to the losses caused by
loadshedding and the other intended expenditure envisaged
by the
state in the plan, those costs pale almost into insignificance.
Secondly, in circumstances comparable to these, our courts
have held
that a non-provision of a budget item, is no excuse. Budgets or
intended expenditure should be re-prioritised as and
when the need
arises to remedy Constitutional infringements
[24]
.
Order
[55]
Consequently,
the following orders are made:
1.
Pending the final determination of PART
B of the application in case no: 005779/2023, in respect of users of
electricity, whether
supplied directly by Eskom Holdings SOC Limited
("Eskom") or by local authorities, the Minister of Public
Enterprises
shall take all reasonable steps within 60 days from date
of this order, whether in conjunction with other organs of state or
not,
to ensure that there shall be sufficient supply or generation of
electricity to prevent any interruption of supply as a result of
loadshedding to the following institutions and/or facilities:
1.1
all "public health establishments"
as defined in the
National Health Act 61 of 2003
, including publicly
owned hospitals, clinics, and other establishments or facilities;
1.2
all "public schools" as
defined in the
South African Schools Act 84 of 1996
;
1.3
the "South African Police Service"
and "police stations" as envisaged in the
South African
Police Service Act 68 of 1995
.
2.
The second, fourth, fifth and eighth
respondents, jointly and severally, the one paying, the other to be
absolved, shall pay the
applicants’ costs of this part of the
application, such costs to include the use of three counsel, where
employed.
3.
The costs in regard to the first
respondent are reserved for determination at the hearing of PART B of
the aforesaid application.
N DAVIS
Judge of the High Court
Gauteng Division,
Pretoria
I agree.
C COLLIS
Judge of the High Court
Gauteng Division,
Pretoria
I agree.
J.
S NYATHI
Judge of the High Court
Gauteng Division,
Pretoria
Date
of Hearing: 20, 22 and 23 March 2023
Judgment
delivered: 05 May 2023
APPEARANCES
in Case No 005779/2023:
For the Applicants
(excluding the 3
rd
Applicant):
Adv T N Ngukaitobi
SC
together with Adv R
Tulk; Adv B B Mkhize; Adv Y Peer; Adv M Gwala; Adv R Rasesemola;
Adv R Richards; Adv K Masutha; Adv M
Molea and Adv B Mathathe
Attorneys
for the Applicants
(excluding the 3
rd
Applicants):
Mabuza Attorneys,
Buthelesi
Vilakazi
Inc; Makangela Mtungani Inc; Mketsu & Associates Inc;
Mphahlele & Masipa Inc; Madlanga & Partners Inc
and Ntanga
Nkhulu Inc. Attorneys, Johannesburg
c/o Mphahlele &
Masipa Inc.,
Pretoria
For the 3
rd
Applicant:
Adv B Dyke SC
together with Adv G Benson and Adv Anusha Nadasen
Attorney for the
3
rd
Applicant:
Michael Herbst
Attorneys,
Pretoria
For the 1
st
Respondent:
Adv A Bham SC
together
with Adv M Du
Plessis SC; Adv C Steinberg SC; Adv J Bleazard; Adv N Nyembe and
Adv C Kruyer
Attorneys for the
1
st
Respondent:
ENSafrica,
Johannesburg
c/o
Mothle Jooma Sabdia
Inc.,
Pretoria
For the Government
Respondents:
Adv K Tsatsawane SC
together with Adv A Hassim SC; Adv D Chabedi and Adv K Ramaimela
Attorneys for the
Government Respondents:
The State Attorney,
Pretoria
For
NERSA:
Adv N
H Maenetje SC
together with Adv P
Sokhela
Attorneys for
NERSA:
Malatji & Co
Attorneys,
Johannesburg
[1]
The requirements for an interim interdict have for more than 100
years been: a prima facie right, an apprehension of irreparable
harm, a favourable balance of convenience and the absence of an
alternate remedy. See
Setlogelo
v Setlogelo
1914 AD 221.
[2]
Prest,
The
Law and Practice of
Interdicts,
Juta, Chapter Five (Prest).
[3]
Erasmus & Van Loggerenberg (formerly Jones & Bucle),
The
Civil Practice of the Magistrates Courts of South Africa
,
8
th
Ed, as quoted in Prest at 43
[4]
S
ec
27(1)(a)
(1)
Everyone has the right to have access to –
(a)
health care services, including
reproductive health care
[5]
S
ec
27(2) The state must take reasonable legislative and other measures,
within its available resources, to achieve the progressive
realization of each of these rights.
[6]
Sec
29(1)
Everyone has the right –
(a)
to a basic education, including adult
basic education; and
(b)
to further education, which the state,
through reasonable measures, must make progressively available and
accessible.
[7]
Head
of Department: Mpumalanga Department of Education and Another v
Hoërskool Ermelo
2010(2)
SA 415 (CC) par 46.
[8]
(1)
Everyone has the right to freedom and security of the person, which
includes the right—
(a) not to be deprived
of freedom arbitrarily or without just cause;
(b) not to be detained
without trial;
(c) to be free from all
forms of violence from either public or private sources;
(d) not to be tortured
in any way; and
(e) not to be treated or
punished in a cruel, inhuman or degrading way.
(2)
Everyone has the right to bodily and psychological integrity, which
includes the right—
(a) to make decisions
concerning reproduction;
(b) to security in and
control over their body; and
(c) not to be subjected
to medical or scientific experiments without their informed consent.
[9]
Cape
Gate(Pty) Ltd v Eskom Holdings Soc and Others
2019
(4) SA 14
(GJ) and
Eskom
Holdings Soc Ltd v Vaal River Development Association (Pty) Ltd (CCT
44/22)
[2022] ZACC 44
(23 December 2022) (
Vaal
River)
par 198.
[10]
Mazibuko
v City of Johannesburg
2010
(4) SA 1
(CC)
[11]
S
ections
5(1) and 5(2)(ii) provide as follows:
5
(1)
The Minister must adopt measures that provide for the universal
access to appropriate forms of energy or energy services for
all the
people of the Republic at affordable prices.
(2)
The measures contemplated in subsection (1) must take into
account—
(i) the State's
commitment to provide free basic electricity to poor households; and
[12]
S
ections
7, 14 and 21
7.
(1) No person may, without a licence issued by the Regulator in
accordance with this Act—
(a) operate any
generation, transmission or distribution facility;
(b) import or export any
electricity; or
(c) be involved in
trading.
(2) Notwithstanding
subsection (1), a person involved in an activity specified in
Schedule 2 need not apply for or hold a licence
issued by the
Regulator.
(3)
(a) Nothing in this Act
precludes a potential licensee from discussing the contemplated
operation of generation, transmission
and distribution facilities,
the import or export of electricity, trading, or any other activity
relating thereto, prior to filing
a licence application with the
Regulator.
(b) The Regulator must
furnish an applicant contemplated in paragraph (a) with all
information necessary to facilitate the filing
of an application for
a licence.
(4) No request for
further information, notification or discussions referred to in
subsection (3) may in any way be construed
as conferring any right
or expectation on an applicant.
14. (1) The Regulator
must decide on an application in the prescribed manner within 120
days-
(a)
after the expiration of the period contemplated in section 12(2)(d),
if no objections
have been received; or
(b)
after receiving the information contemplated in section I3(b).
(2) The Regulator must
provide the applicant with a copy
of
its decision as well as
the reasons for the decision.
(3) The Regulator must
issue separate licences for –
(a) the operation of
generation, transmission and distribution facilities;
(b) the import and
export of electricity; or
(c) trading.
(4) The Regulator is not
obliged to issue a licence and may issue only one licence per
applicant for each of the activities contemplated
in subsection (3).
21. (I) Any generation
or transmission licence issued in terms of this Act is valid for a
period of 15 years or such longer period
as the Regulator may
determine.
(2) Any distribution or
trading licence issued in terms of this Act is valid for the period
determined by the Regulator.
(3) A licensee may apply
for the renewal of his or her licence.
(4) An application for
renewal must be granted, but the Regulator may set different licence
conditions. (5) A licensee may not
assign a licence to another
party.
[13]
(
CCT
44/22
)
[2022] ZACC 44
(23 December 2022)
[14]
Second
respondent’s answering affidavit, par 21.
[15]
The
quotations ascribed to the “governmental” respondents
are taken from their respective individual answering affidavits.
[16]
Prest
at
77.
[17]
ss 38 and 172 of the Constitution
[18]
Hoffman
v South Africa Airways
2001
(1) SA 1
(CC) at par 42.
[19]
2002 (5) SA 721 (CC).
[20]
Electronic
Media Network Ltd v e.tv (Pty) Ltd
[2017] ZACC 17
;
2017 (9) BCLR 1108
(CC) and
Economic
Freedom Fighters v Speaker of the National Assembly
[2016] ZACC 11, 2016 (3) SA 580 (CC), 2016 (5) BCLR 518 (CC).
[21]
For similar examples see:
Minister
of Health
(above)
and
Fose
v Minister of Safety and Security
1997(3) SA 786(CC) ;1997(7) BCLR 851.
[22]
Sanderson
v Attorney-General Eastern
Cape
[1997] ZACC 18
;
1998 (2) SA 38
(CC)
(1998 (1) SACR 227
,
1997 (12) BCLR 1675
;
New National Party of South Africa v Government of the Republic of
South Africa
[1999] ZACC 5
;
1999 (3) SA 191
(CC),
(1999 (5) BCLR 489)
and
Minister
of Health
(above) at par 105.
[23]
IEC v
Langeberg Municipality
2001(3) SA 925 (CC)
[24]
City of
Johannesburg v Blue Moonlight Properties (Pty) Ltd
2012 (2) SA 104
(CC).
sino noindex
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