KEY POINTS
- South Africa’s Supreme Court of Appeal ordered Eskom to release its coal and diesel contracts after dismissing the utility’s appeal.
- The court ruled the public has the right to access the agreements and rejected claims that disclosure would harm commercial interests.
- AfriForum welcomed the decision, saying it would enable scrutiny of Eskom’s fuel spending, one of the utility’s largest costs.
South Africa’s Supreme Court of Appeal has ordered power utility Eskom to disclose its coal and diesel supply contracts, in a landmark ruling expected to shed light on how billions are spent on electricity generation.
The decision followed the dismissal of Eskom’s appeal against an earlier 2024 High Court ruling that directed the company to release the agreements.
The case was brought by civil society group AfriForum under the Promotion of Access to Information Act (PAIA), which seeks to guarantee public access to information held by public bodies.
Eskom had argued that releasing the contracts would harm its commercial interests and those of its suppliers. However, the court rejected the claim, ruling that the utility failed to demonstrate that disclosure would result in real or substantial harm.
Judge Elizabeth Baartman stated that the public has a right to access the contracts, noting that Eskom enters into the agreements using public funds and in the public interest.
She added that there was no evidence to support the claim that the agreements were confidential or that disclosure would disadvantage the utility or third parties.
AfriForum Welcomes Decision, Cites Need for Oversight
AfriForum welcomed the ruling, saying it would enable long-delayed scrutiny of Eskom’s spending. The organisation described the judgment as a decisive victory for transparency and accountability in the energy sector.
According to AfriForum’s manager for local government affairs, Morné Mostert, Eskom procures more than 100 megatons of coal annually, making fuel purchases one of the utility’s largest expenditures. He noted that transparency is essential given documented irregularities in procurement processes, findings from the Zondo Commission of Inquiry into State Capture, and shortcomings highlighted in Eskom’s financial statements.
In response, Eskom said it had taken note of the ruling and is reviewing the judgment with its legal team. The decision is expected to lift long-standing secrecy around the power utility’s coal and diesel procurement arrangements.
The ruling could also provide the public with greater insight into fuel supply costs and contracting processes, which play a major role in electricity pricing and generation operations.
