NUM warns Eskom faces collapse after court blocks tariff deal

The National Union of Mineworkers (NUM) has strongly condemned the Pretoria High Court’s decision to block a controversial R54 billion settlement between Eskom and the National Energy Regulator of South Africa (NERSA), saying the judgement threatens the survival of the national power utility and amounts to an “unpatriotic and counter‑revolutionary act.”

In a statement issued on this week, the union expressed “grave concern” over the ruling, which came after civil rights group AfriForum successfully challenged the secret agreement in court. The High Court set aside the settlement on the basis that it was reached without meaningful public participation and was therefore unlawful, remitting the matter back to NERSA and requiring a proper consultation process before any tariff increases can be confirmed.

At the heart of the dispute was a private settlement reached in July between Eskom and NERSA, intended to correct errors in tariff revenue calculations and to allow Eskom to recover billions through future electricity price adjustments. Under the proposed deal, standard tariff increases of about 8.76% in 2026/27 and 8.83% in 2027/28 would have been implemented, significantly higher than previously determined rates aimed at lessening the burden on consumers.

NUM’s Energy Sector Coordinator, Khangela Baloyi, reiterated the union’s longstanding criticism of the introduction of Independent Power Producers (IPPs) and the unbundling of Eskom, saying such policies have eroded Eskom’s financial base. “If Eskom cannot recover these costs, it will face total collapse; mirroring the tragic decline of other State‑Owned Companies (SOCs),” Baloyi said, arguing the High Court judgement undermines efforts to stabilise the utility.

The union called on the government to review the unbundling process, reassess reliance on IPPs, and protect the national grid from legal challenges that prioritise profit over energy security, asserting that a strong, integrated state utility is essential for economic growth.

Eskom has commented on the ongoing legal process, warning that delays in the court’s decision could affect its ability to keep future tariff increases below 10% and complicate planning for municipal tariff adjustments. The utility said the matter remains before the courts and that it is unable to provide further comment until the judgement has been formally delivered.

Consumer groups and other unions have responded differently to the ruling. The South African Federation of Trade Unions (SAFTU), for example, welcomed the judgement as a win for electricity users, saying decisions with significant economic impact should not be taken behind closed doors.

The High Court’s decision has reignited debate over transparency, public participation and the future of South Africa’s energy policy at a time when consumers are struggling with high electricity prices and ongoing load‑shedding challenges.