Tuesday, October 20, 2026
SUBSCRIBE
22 GLOBAL MEDIA AWARDS
Food For Mzansi
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi
No Result
View All Result
in News

Eskom’s ‘stupid’ 32% hike will hit pockets hard

As if South Africans aren't dealing with enough, Eskom is once again in the news for all the wrong reasons. And the people of Mzansi will be hit even harder should the utility's hike take effect in the coming months

by Octavia Avesca Spandiel
7th December 2022
Consumers and businesses, especially poultry producers, are fuming at the possibility of a 32% tariff increase by Eskom. Photo: Food For Mzansi

Consumers and businesses, especially poultry producers, are fuming at the possibility of a 32% tariff increase by Eskom. Photo: Food For Mzansi

Share on FacebookShare on TwitterShare on WhatsApp

If the National Energy Regulator of South Africa (Nersa) signs off on Eskom’s “stupid” request for a 32% tariff hike effective from April 2023, the country’s agricultural sector will not only substantially drown in costs but consumers will ultimately have to pay for this massive hike, especially when it comes to poultry, experts warn.

Amid load shedding, crumbling infrastructure and an inability to consistently provide power to Mzansi, Nersa is expected to take a decision before the end of this year on whether Eskom is entitled to recover 32% more revenue from electricity users in Mzansi.

For Astral Foods, one of Mzansi’s leading integrated poultry producers, the potential hike is of great concern. According to Astral Foods’ managing director: poultry commercial Frans van Heerden, energy costs are in the top five expenses of any poultry processor.

“If there is a 32% increase on [electricity], it will increase our costs substantially, and ultimately one cannot just absorb it, the consumer will have to pay for these big increases until there’s an alternative that is more cost-effective,” Van Heerden explains.

Consumers will be paying more for chicken

That’s not all. Van Heerden adds that load shedding has already impacted business badly and all processing facilities are feeling the burn.

“We work with a living animal, so you can’t process chicken that would need to be processed today and carry it over to tomorrow. We are recurring a lot of costs, we are working 24/7 as well as sorting and processing on weekends.”

The chickens are remaining on the farms longer than anticipated, which means they need more feed and become “bigger”, creating a bird voltage.

“For the last financial year, we recurred R150 million worth of costs due to load shedding and with the current state, it will only escalate,” says Van Heerden.

Astral Foods has tried to absorb the costs as far as it could, but the latest round of load shedding that started in September, has made it difficult to cover these costs internally.

“We have approached the market now with a price increase which includes the costs of load shedding. If we are successful in passing the increase, we stabilise our business and we can continue as is,” Van Heerden explains.

Astral Foods is looking at an R2.50-R3.50 per kg price increase and a third of the money will go towards load shedding.

Households are already struggling

With the impact of the potential increase likely to reverberate across South Africa, it is struggling households that will be forced to bear the brunt of such an increase, says Mervyn Abrahams, the programme coordinator at Pietermaritzburg Economic Justice & Dignity.

“It’s a stupid increase because energy is essential to all input costs. Everything that is produced in the South African economy involves to some extent, electricity,” Abrahams says.

He explains to Food For Mzansi that there are four categories which struggling households spend their minimum wages on. These are transport, electricity, debt services, and eventually what’s left of the money, on food. 

Electricity and food

Abrahams further adds that the already struggling households in Mzansi will be affected in two ways. The first would be the electricity tariff if a low-income household uses 350kw of prepaid electricity. As it stands, this costs a household around R787.

“So already that R787 is 19.3% of the national minimum, which was measured in November of this year.”

Agbiz CEO Theo Boshoff. Photo: Supplied/Food For Mzansi
Agbiz CEO Theo Boshoff. Photo: Supplied/Food For Mzansi

The second impact is on food costs, because most of Mzansi’s staple food needs cooking such as maize meal, rice, and stew and these foods need some kind of electricity. 

“[The potential increase] will force households to spend more on electricity, and of course, where do they take the money? From their food money to survive, while at the same time we are likely to see massive increases in food prices,” he says. 

Abrahams believes that the country is already in a food crisis, and an increase in electricity tariffs can worsen the poverty levels. 

Domino effect

Consumers will have less money because they have to pay Eskom more, which is like a domino effect.

“People will either disconnect themselves from the grid, meaning they will use alternative energy such as paraffin, and fire, which would increase petrol.”  

The other side of the coin is that people will connect to the Eskom grid illegally, putting the power supplier in a more difficult space rather than making it affordable, he adds.

“This is a faulty business plan on behalf of Eskom, and they should make electricity affordable. Eskom should roll it out across the country and most people will be able to pay for it, and in that way, Eskom might even make more money,” Abrahams says.

‘Eskom taking it too far’

Meanwhile, according to Theo Boshoff, chief executive officer of the Agricultural Business Chamber (Agbiz), though the desire is to see a realistic increase that is affordable for consumers and agribusiness, Eskom is taking it too far.

“Obviously we would argue for something much lower, but looking at the long-term forecast, electricity is due to get more and more expensive,” says Boshoff.

ALSO READ: Tough times for meat lovers, farmers this festive

Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.

Octavia Avesca Spandiel

Raised by a close-knitted family who loves her deeply, Octavia believes in the philosophy of ‘I am because you are'. This former news and content editor for radio is now living her best life in the agricultural sector as a commercial journalist at Food For Mzansi. Her soft spot for poetry and passion for life, writing and traveling inspires her to write compelling stories. Apart from being an excellent writer, Octavia has an educational background in youth work and loves working with people. 

Tags: electricityEskomFood pricesLoad Shedding
The panellists at FNB Business’s “Farming together” discussion at the Royal Show explored how market access, mentorship, financial discipline and strong commercial relationships can help farmers build sustainable businesses. Featured from the left are Bertram July (FNB’s distribution sales lead), commercial farmer Shakes Shabalala; Sandy Gumede (co-founder of Zulu Girl Wines), and Janis Robson (FNB’s head of development and SME business development). Photo: Food For Mzansi
News

FNB puts relationships at the heart of commercial farming

by Staff Reporter
17th October 2026

From buying a farm with cattle to building a wine brand from scratch, entrepreneurs shared how strong relationships, market access...

Read moreDetails
Agri Skills Transfer students gain hands-on experience at the institution’s Cullinan Farm Training Centre, where agricultural theory meets the realities of commercial production. Photo: Supplied/Food For Mzansi

Build your future in agriculture with Agri Skills Transfer

17th October 2026
Durbanville Hills tastes sweet success at Michelangelo Awards

Promising early conditions predicted for 2027 SA wine harvest

17th October 2026

Reclaiming the kraal: Cultural heritage sparks a farming dream

16th October 2026

How animal welfare and human rights shape food security

16th October 2026

Mpumalanga agripreneur bottles family wisdom one chilli at a time

FNB puts relationships at the heart of commercial farming

Farmers urged to tap into recycled human waste as fertiliser

Build your future in agriculture with Agri Skills Transfer

Reluctant farmer scales EC cabbage enterprise to supply Spar

Join Food For Mzansi's WhatsApp channel for the latest updates!

JOIN NOW!
Next Post
In its current form, the climate change bill gives sectors just one year to develop adaptation strategies to prepare for both present and future climate shocks. Photo: Supplied/Food For Mzansi

Climate change: Here’s what we can still do

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 21 global awards in the first six years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

Fixing SA’s agricultural visa system to protect seasonal harvests

SA and Namibia reevaluate livestock trade after FMD outbreak

Agda conference to tackle finance, market access and agri growth

Reluctant farmer scales EC cabbage enterprise to supply Spar

Reality check: What SA agri interns really experience on the farm

This week’s agri events: 19 – 23 October

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Chat Options

About this assistant

This feature generates automated answers summarised from Food For Mzansi articles. By using it, you are interacting with an AI system (provided by Google), not a human. AI can make mistakes. Please refer to the source articles for verification and citation purposes.

Our staff do not check or moderate Lerato’s answers in advance, but may review some later. Our journalists continue to write and edit all the articles Lerato uses as sources.

To estimate unique and returning web users, we store a random browser ID in this browser. WhatsApp users are counted by phone number. The same person using both channels may be counted twice.

I'm Lerato, your AI assistant!
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2026 Food for Mzansi