Outa files legal challenge to overturn Nersa’s Karpowership licences
The Organisation Undoing Tax Abuse (Outa) has taken to the courts to challenge the generation licences awarded to Karpowership SA last year.
This after Outa filed an application to review and set aside the decision by the National Energy Regulator of South Africa (Nersa).
Outa’s application was filed in the Pretoria High Court on Tuesday.
The controversial contracts have been the centre of public debate since last year September when Nersa granted the floating power ship provider generation licenses for Saldanha Bay, Coega and Richards Bay.
This is despite Karpowership's applications for environmental approval being denied by the Department of Forestry, Fisheries, and Environment in June.
The 20-year contract is expected to cost more than R200 billion.
Outa’s Stephanie Fick says Nersa’s decision was irrational.
“By doing so, it has failed to properly exercise its mandate in terms of the ERA [Electricity Regulation Act] and fulfil its oversight functions of regulator without the necessary independent checks and balances to ensure that the interests of electricity suppliers are balanced with the interests of customers, the public and the South African economy.
“The decisions to award the licences to Karpowership for generation at Coega, Saldanha Bay and Richard’s Bay respectively were irrational, unreasonable, and taken without regard to relevant considerations or with regard to irrelevant circumstances,” says Fick.
Outa believes Nersa is not acting in the best interest of consumers.
“If the Karpowership contract goes ahead, the price of electricity will go even higher, having a huge impact on the pockets of electricity users and SA taxpayers,” Fick adds.
In January this year, DNG Energy lost its legal bid to halt the emergency power programme that would see its rivals Karpowership generate close to 2000 megawatts of power for the national grid.
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