The Supreme Court of Appeal decided that a decision by the National Energy Regulator of South Africa to determine gas prices was not reviewable at the stage when NERSA decided on a methodology to determine the prices, but was reviewable when NERSA subsequently determined the prices imposed on customers. In February 2012, NERSA concluded that there was inadequate competition in the pipe-gas industry and decided on a methodology to determine maximum gas prices that licensees might charge. As a result it applied a mark-up in respect of the cost price of gas that increased the mark-up from the previous 227% to 398%. The Promotion of Administrative Justice Act 2000 allows the review of administrative action which ‘adversely affects the rights of any person and which has a direct, external legal effect’. Determining the pricing methodology did not have a direct external legal effect until NERSA determined what the maximum prices should be. Their methodology decision did…
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