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National Energy Regulator of South Africa and Another v PG Group (Pty) Limited and Others (CCT131/18) [2019] ZACC 28

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National Energy Regulator of South Africa and Another v PG Group (Pty) Limited and Others (CCT131/18) [2019] ZACC 28

15th July 2019

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[1] In terms of the Gas Act,[1] the statutory functions of the first applicant, the National Energy Regulator of South Africa (NERSA), include regulating gas prices in the prescribed manner; monitoring and approving, and if necessary regulating tariffs for the transmission of gas; and promoting competition in the gas industry.[2]  Where NERSA has determined that there is inadequate competition in the gas market, it is mandated by the Gas Act to approve maximum gas prices that a regulated entity may charge through the imposition of a condition in the licence of that entity.[3]

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[2] The first and second applicants, NERSA and Sasol Gas (Pty) Limited (Sasol), seek leave to appeal against a judgment of the Supreme Court of Appeal[4] reversing a decision of the High Court of South Africa, Gauteng Division, Pretoria,[5] (High Court) and reviewing and setting aside the decisions of NERSA to approve Sasol’s maximum gas price and transmission tariff applications on the dual bases of irrationality and unreasonableness.

[3] The respondents are all large-scale consumers of piped gas who were aggrieved by NERSA’s decision to approve Sasol’s applications as the approval resulted in a substantial increase in the prices they had been paying.

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