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The agriculture sector has become the latest to complain about Eskom's proposed electricity tariff increases. Eskom is asking National Energy Regulator of South Africa to approve hikes of 45% for the next three years.
Agri SA President Johannes Moller says the agricultural sector had been confronted over the past few years with drastic price increases in terms of intermediate inputs, such as fertiliser and fuel. Moller says electricity will now assume this role.
“The proposed next five years and the actual increase will have the effect of a five fold increase in electricity, the irrigation sector that is responsible for 24% of agriculture products were very high and also the dairy industry were very high - and then of course the whole processing, so we think that this will have effect of the increase on food prices,” says Moller.
Labour federation Congress of South African Trade Unions (Cosatu) has since said Eskom’s request will destroy small businesses and force the poor to abandon electricity completely.
“Many of the poor will not be able to afford electricity at all and will turn to more dangerous sources of heat and light, such as paraffin and gas,” said Cosatu spokesperson Patrick Craven.
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