JOHANNESBURG – The Organisation Undoing Tax Abuse (OUTA) has filed a legal challenge in the High Court in Pretoria over the national energy regulator’s Karpowership licenses.

OUTA says Nersa failed to act in the interest of South Africans and didn’t consider that the Karpowership 20-year emergency contracts won’t resolve rolling blackouts.

READ: Nersa grants Eskom 9.61% tariff increase

The controversial deal has been slammed by opposition parties, NGOs and environmental groups.

It could cost South Africa has much as R218-billion over two decades.

READ: Karpowership probe cancelled

Eskom has reportedly sought indemnity from the agreement in case of any adverse outcomes.

A losing bidder, DNG Power Holdings, is appealing a lawsuit that alleges government officials acted corruptly in awarding the tender.