NUM Condemns High Court Ruling Blocking R54 Billion Eskom-NERSA Settlement

JOHANNESBURG – The National Union of Mineworkers (NUM) notes with grave concern the Pretoria High Court’s decision to reject the R54 billion settlement between Eskom and the National Energy Regulator of South Africa (NERSA). The NUM views the legal challenge brought by AfriForum as an unpatriotic and counter-revolutionary act designed to destabilize the national utility.

The Threat to Eskom’s Survival Eskom’s ability to function is contingent on its capacity to recover legitimate "pass-through" costs via tariffs. The current financial crisis is a direct byproduct of neoliberal policies that forced Eskom to purchase electricity from Independent Power Producers (IPPs) at a premium rate while being mandated to sell it to the public at below the cost of production.

“The NUM has long warned that the introduction of IPPs would erode Eskom’s financial foundation,” said Khangela Baloyi, NUM Energy Sector Coordinator. “While we have always been concerned about the burden pass-through costs place on the end-user, the reality is that if Eskom cannot recover these costs, it will face total collapse—mirroring the tragic decline of other State-Owned Companies (SOCs).”

A Call for Policy Reform the NUM maintains that the unbundling of Eskom and the introduction of independent power, transmission, and trading entities is a failed experiment. These policies serve a neoliberal agenda that is fundamentally at odds with South Africa’s vision of a developmental state.

We call on the South African government to:
• Review the unbundling process and the reliance on IPPs that drain Eskom’s resources.
• Protect the national grid from ideological legal challenges that prioritize profit over national energy security.
• Recommit to a strong, vertical integrated state utility capable of driving economic growth.

The NUM remains committed to defending Eskom and its workers against any ideology or legal maneuver that seeks to destroy the backbone of our economy.

For more detailed information, please contact:

Khangela Baloyi NUM07 Energy Sector Coordinator, 072 450 6251

The National Union of Mineworkers
7 Rissik Street.
Cnr Frederick Johannesburg
Tel: 011 377 2111 Cell: 083 809 3257
Twitter: @Num_Media

Facebook: https://www.facebook.com/pages/NUM/10086002340216