Pretoria – The City of Tshwane says it is “elated to announce” that the Gauteng North Division of the High Court has set aside the National Energy Regulator of South Africa’s (NERSA) decision to amend Eskom’s electricity distribution licence to include the Mooikloof Mega City development.
Eskom had applied in March 2021 to extend its licence to cover Mooikloof Mega City, situated in the east of Tshwane.
In February 2023, NERSA decided to include the Mooikloof Mega City, Rietfontein 375-JR, into Eskom’s licensed area.
However, the City of Tshwane opposed NERSA’s decision and took the matter to court, arguing that the regulator’s decision conflicted with its constitutional and legislative authority.
On Tuesday, 9 June 2026, Justice Millar ruled that NERSA’s decision to include the Mooikloof Mega City, Rietfontein 375-JR, into Eskom’s licensed area of supply was unlawful and invalid.
Justice Millar also ruled that the approval must be reviewed and set aside.
As part of the ruling, the court emphasised that as a matter of logic, any extension of Eskom’s licence to additional areas of the Farm required a corresponding amendment to Tshwane’s licence to remove those areas from its scope.
At the time the licence was granted to Tshwane, several existing customers within the generally underdeveloped areas of the Farm had historically been supplied by Eskom.
That area had already been licensed to the city in September 2011.
Welcoming the court outcome on Wednesday, 10 June 2026, the City of Tshwane said the ruling prevents a significant financial loss.
Full implementation of the 50 000-unit development was projected to generate about R125 million per month in electricity revenue, based on average household consumption of R2 500.
The city described the judgment as a “massive victory,” noting that the outcome safeguards its jurisdiction and revenue stream.
