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High Court ruling in Sibanye case strengthens rule of law in energy sector
Energy Council highlights Sibanye–Eskom judgment as key for rule of law and energy reform
The Energy Council of South Africa recognises the importance of the Gauteng High Court’s February 18, 2026, judgment in Sibanye Gold and Others v Eskom Holdings SOC Ltd and Others, which overturned Eskom’s refusal to grant a wayleave for a license-exempt, behind-the-meter renewable energy project.
Eskom is reviewing the judgment, citing areas of concern, and the right to appeal is always respected under the rule of law.
All stakeholders must appreciate that although significant progress has been made in addressing South Africa’s electricity crisis, the sector remains vulnerable and confronted by a range of complex challenges. It is essential that energy security and affordability, key priorities for the Department of Electricity and Energy (DEE), are safeguarded; therefore, any undermining actions that are shown to be irrational, unreasonable, or unlawful should not be accepted.
The Energy Council advocates for a balanced, phased energy transition that addresses national interest, local challenges, and, critically, that fosters investor and consumer confidence. Eskom plays a vital role in supporting the electricity sector and national reforms, but must remain compliant with legal and policy requirements.
This judgment reaffirms the importance of the rule of law in maintaining the integrity of South Africa’s energy transition framework and sets a precedent for proper enforcement of the Electricity Regulation Act (ERA) and regulations overseen by NERSA.
James Mackay, CEO of the Energy Council of South Africa, commented: “This is a critical judgment for South Africa’s energy sector. The Court made it clear that legal projects should not be blocked by improper administrative actions. Upholding the rule of law, regulatory certainty, and the role of NERSA are essential to unlocking investment, growth and jobs in the energy sector.”
The Council believes this ruling should guide future cooperation between industry and Eskom, and that under the leadership of the DEE, it will help restore confidence among investors and developers who want to strengthen South Africa’s energy supply.
The Council calls on all sector leaders, including Industry, Eskom and the DEE, to continue to engage robustly and openly, acknowledge and correct where mistakes have been made, and continue to work together to support the Government priorities as outlined in SONA 2026:
- Drive inclusive growth and job creation
- Reduce poverty and tackle the high cost of living;
- Build a capable, ethical and developmental state
Collaboration and trust among government, Eskom, investors, and industry are essential to South Africa’s energy transition. The Energy Council remains committed to working closely with all sector stakeholders to promote constructive dialogue and solutions that advance the national interest.
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