Tshwane wins Mooikloof Mega City electricity dispute as Eskom loses leave to appeal

In a recent high court ruling, the City of Tshwane secured victory in a long-standing electricity dispute with Eskom over the Mooikloof Mega City development. The decision, handed down on October 8, 2026, after a hearing on September 22, 2026, effectively dismissed Eskom's request to appeal the judgment. Judge Anthony Millar deemed no compelling reason to grant an appeal, stating, "I am of the view that another court would not come to a different conclusion or that there is any compelling reason for the grant of leave to appeal."

The court's decision came after Millar set aside Nersa's February 10, 2023, order that expanded the development's coverage under Eskom's license. The Farm Rietfontein 375-JR, a part of the site, had been licensed to Tshwane since 2011, while Eskom's license only covered a few existing customers in the area. Millar found that Eskom's attempt to change its own license without Tshwane's consent created an impermissible overlap and dismissed the greenfield argument, as the farm had been within Tshwane's licensed area since 2011.

Tshwane's 2011 license granted Eskom a distribution facility for the Mooikloof Mega City development, estimated to generate R125 million monthly. Despite Nersa's concerns, no amendment to Tshwane's license was made or applied for. The court ruled that municipalities have exclusive jurisdiction over electricity reticulation, citing the Constitution's emphasis on municipalities' role in providing basic services.

The judgment confirmed that the Mooikloof Mega City development falls within Tshwane's licensed area, and both Eskom and Nersa were ordered to pay Tshwane's costs, with the latter paying under Scale C, including costs for two counsel.