Mzansi farmers are scrambling for alternative energy sources amid daily blackouts of up to eight hours and the 18.65% electricity price hike approved by the National Energy Regulator of South Africa (Nersa). While this might be less than the 32% that Eskom had asked for the 2022-2023 financial year, the beleaguered power utility will get a further 12.74% in April 2024.
This, says Kempen Nel of Free State Agriculture (FSA), is daylight robbery.
“A massive amount has been spent by farmers on back-up energy solutions where energy cannot be switched off for long periods of time, such as safety devices or milk tanks, warehouse cold rooms and processed meat freezers,” he says.
Nel, a Jacobsdal irrigation farmer and FSA’s commercial affairs committee chairperson, describes the price increase as highly unaffordable.
During the farming organisation’s public submissions it had indicated to Eskom that the threshold of switching to alternative energy sources has been reached for rural households and non-energy intensive farms.
“Farmers remain price takers and the increases in unplanned forced expenses prevent investment in new technology and equipment to make farming more effective and sustainable as well as food affordable,” he says.
Furthermore, Eskom’s increasing unreliability to supply power affects irrigated farming at a critical growth period when irrigation must be done at night. “On top of the ridiculous cost increase for power, the unreliability of power supply is another big red flag for food security.”
Where is government?
Meanwhile, Agri Western Cape chief executive Jannie Strydom says urgent government was needed amid rolling blackouts. Last year, South Africans experienced load shedding for 157 days. Thus far, in 2023, the country has had daily power cuts.
“Food security cannot rest solely on the shoulders of producers,” warns Strydom. “Food production is currently under immense pressure. Decision-makers need to recognise the seriousness of the problem.
“The energy needs of farming operations remain the same irrespective of the electricity tariff. Producers are now forced to invest in alternative sources of electricity, which requires enormous capital.”
Strydom describes the 18.65% electricity price hike as “a drastic increase … for electricity supply that is already extremely unreliable. Consumers therefore pay more for less power.”
Earlier, Western Cape agriculture minister Dr Ivan Meyer urged Eskom to make special provisions for farmers who were busy harvesting.
He warns, “The agricultural sector largely depends on the national grid to produce, process, and prepare for international and local markets and exports. In addition, farmers rely on electricity to pump water for irrigation purposes. Therefore, load shedding has a devastating impact on the production side of their farms.”
The Western Cape alone is responsible for 53% of South Africa’s agricultural exports, says Meyer. “A load shedding schedule that responds to the requirements of the agriculture sector will protect rural economies and jobs.”
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