Outa weighs class action against Eskom

150711. Sunset in Crownmines, Johannesburg. The picture can be used for Eskom energy supply crisis. Picture: Dumisani Sibeko

150711. Sunset in Crownmines, Johannesburg. The picture can be used for Eskom energy supply crisis. Picture: Dumisani Sibeko

Published Aug 18, 2016

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Johannesburg - Smelling blood after the South Gauteng High Court on Tuesday floored Eskom and the National Energy Regulator of South Africa (Nersa), lobby group Organisation Undoing Tax Abuse (Outa) yesterday said it was considering a class action against Eskom.

Outa said it was in discussions with various experts to assess the viability of launching a class action against Eskom on behalf of the public to recoup the amounts unlawfully charged.

“We applaud the businesses and the Nelson Mandela Bay business chambers for successfully challenging the irrational manner within which Nersa approved the increase in Eskom’s tariffs. Although not all amounts overcharged will be deemed significant in the eyes of some, it is an absolute matter of principle that Eskom pay back every cent they have overcharged,” said Ivan Herselman, director of legal affairs at Outa.

Outa was one of the organisations that opposed Eskom’s regulatory clearing account application.

In its submission to Nersa earlier this year, Outa said the regulator should objectively satisfy itself on the extent to which Eskom generated, transmitted and distributed electricity efficiently and to assess the impact electricity increases on the economy.

Meanwhile, Eskom last night said it was still studying the judgment.

“As we await a decision by the Nersa on the way forward regarding the North Gauteng High Court’s judgment, it is important to note that the court has ruled that the revenue allowed for the 2016/17 tariff will remain in force,” Eskom said in a statement yesterday.

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