Paarl Post

Electricty tariff hike will hinder agriculture

accreditation
The agricultural sector is shocked by the latest electricity tariff hike.
The agricultural sector is shocked by the latest electricity tariff hike.

The National Energy Regulator (Nersa) announced yesterday that a tariff increase of 18.65% has been granted to Eskom for the 2023/24 tariff year.

Although the increase is lower than requested by Eskom, 18.65% is intolerable.

“This is a drastic increase in tariffs for electricity supply that is already extremely unreliable. Consumers therefore pay more for less power,” said Jannie Strydom, Chief Executive Officer of Agri Western Cape (AWC).

During the public hearing, AWC emphasised that agriculture cannot afford a tariff increase above inflation.

“The energy needs of farming operations remain the same irrespective of the electricity tariff. Producers are now forced to invest in alternative sources of electricity, which requires enormous capital,” Strydom argued.

This tariff increase is applicable to Eskom’s direct customers and will come into effect on 1 April 2023, while the increase for municipal customers will only come into effect on 1 July 2023. Municipalities now have an opportunity to apply for a tariff increase and are likely to add a surcharge for their clients.

“Food security cannot rest solely on the shoulders of producers. Food production is currently under immense pressure. Decision-makers need to recognise the seriousness of the problem – urgent intervention is needed,” said Strydom.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Voting Booth
What are your thoughts on the possibility of having permanent Stage 2 or 3 load shedding?
Please select an option Oops! Something went wrong, please try again later.
Results
I'll take that over constant schedule changes
13% - 1282 votes
Why are we normalising Eskom’s mess?
72% - 7163 votes
I've already found alternative ways of powering my home/business
15% - 1488 votes
Vote
Rand - Dollar
17.08
-0.2%
Rand - Pound
20.91
+0.9%
Rand - Euro
18.65
+0.5%
Rand - Aus dollar
12.10
+0.6%
Rand - Yen
0.13
-0.4%
Platinum
1,020.69
+0.9%
Palladium
1,651.58
-1.1%
Gold
1,912.75
-1.9%
Silver
23.45
-2.2%
Brent Crude
82.84
-3.2%
Top 40
73,629
-0.1%
All Share
79,802
-0.0%
Resource 10
74,686
-0.6%
Industrial 25
102,624
+0.1%
Financial 15
16,551
-0.0%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE