The Eels’ only loss last year came in the final and they had made an unblemished start to the campaign this season.
But University showed Taieri-like resolve on defence to register an upset and stay in touch with the top six.
Lock Mitchell Tinnock shone on a grey day and loose forwards Louis Magalogo and Aaron Withy led the defensive effort.
Halfback Brad Campbell scored a crucial try midway through the second half and was impressive as well.
The Eels made too many mistakes and struggled in the lineout thanks to Tinnock, who is a huge young man.
Veteran Taieri forward Brodie Hume put in another big shift and scored with about 10 minutes left to set up a tense finish.
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Harbour edged Green Island 15-7 at Watson Park. Tries to Solomon Pole and Benjamin Fakataha saw the Hawks take a 12-0 lead into the break.
Obey Samate added a penalty seven minutes into the second spell to stretch the lead.
The Grizzlies got a late consolation try to Ben Lopas with about four minutes remaining.
Southern produced some quality wet-weather rugby at Montecillo to rout Zingari-Richmond 65-0. Fullback Josh Buchan scored a couple of tries in what was his 50th game for the Magpies.
He is in a good patch of form. Hooker Jake McEwan and loosie Harry Taylor also stood out.
It was one-way traffic at the North Ground as well. Kaikorai dispatched Alhambra-Union 59-0.
Blindside flanker Lucas Casey enhanced his growing reputation with two early tries and a storming game.