A proposed 16 percent electricity tariff increase would force the agriculture sector to look at alternative energy sources, says Agri Western Cape, where farmers across the province are already paying around R894 million annually for electricity. The measure would be a disaster for the sector, which is already under pressure due to the drought and the economic climate.
That figure will increase by over R140 million should the power utility, Eskom's application to recoup billions of rand be approved by the National Energy Regulator (Nersa). Agri’s CEO Carl Opperman says a farmers cannot afford the tariff increase and it could spell disaster for the agriculture sector.
Opperman says Eskom would be negatively affected as well.
“They are opening it for alternative products and alternative energy to fill this gap and this is going to make them totally irrelevant.”
Nersa is expected to decide on Eskom's application next month.
The Democratic Alliance (DA) says it wants Eskom’s top executives to pay back bonuses that have been paid out since 2008, the year South Africa experienced load shedding for the first time.
The party says R73 million has been paid in bonuses, saying it's an exorbitant amount considering how unreliable electricity supply is.
The DA’s Shadow Minister of Public Enterprises Natasha Mazzone says this is not feasible for the consumer.
“If one takes into account the drought situation, the increase in food prices and a possible increase in electricity it’s going to hit the consumer incredibly hard. If the utility is asking for a 16.6 percent increase, charity begins at home and what you do is ensure that no bonuses are paid out.”
(1 South African Rand= 0.061 USD)
Source: ewn.co.za