The National Energy Regulator of South Africa (NERSA) has sanctioned a 12.74% increase in tariffs for direct Eskom customers from 1 April, aiming to mitigate the financial woes of the utility. Eskom's statement highlighted the necessity of this adjustment for operational stability amidst high operational costs and significant debt.
The agricultural sector, heavily reliant on electricity, faces potential repercussions due to this steep rise in costs. Directly supplied farmers will experience immediate effects, while others anticipate municipal adjustments in July.
Dawie Maree of FNB Agriculture pointed out the broader implications on the agricultural value chain, from production to retail, emphasizing the strain on food production costs and profitability. The hike is expected to ripple through the economy, affecting inflation and interest rates, with prolonged food inflation and concerns over food affordability. Bennie van Zyl from TLU SA described the tariff increase as devastating for farming viability.
Source: farmersweekly.co.za
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