AgriSA on Monday expressed concern over the tariff hike granted to Eskom, saying the increase would cost the agricultural sector approximately R300-million per year.
Last week, the South Africa National Energy Regulator (Nersa) granted Eskom an average 13,3% tariff hike in addition to last year’s 14,2% approved by the regulator.
AgriSA president Lourie Bosman said he was ”seriously” concerned over the implications for the sector.
”The announcement comes amidst a series of cost increases in the economy that pose serious financial implications for the agricultural sector,” said Bosman.
He said the increase in fuel costs meant that the cost to transport essentials such as fertiliser and pesticides had to go up, while the cost of these essentials went up too.
”The electricity crisis experienced in the country meant that Nersa had to approve a further increase for Eskom, bringing the total tariff increase to 27,5% for the year.
”Additional electricity costs for agriculture based on the increase will amount to approximately R300-million per year,” said Bosman. — Sapa