The impact of Eskom’s unrelenting load shedding is showing farmers flames and farming communities across South Africa as well.
According to Roelie van Reenen, supply chain executive at Beefmaster Group, agricultural businesses have a duty to assist municipalities that are buckling under the added pressure of load shedding, in their areas of influence.
“We must remember that farmers are capable people, and they are likely to use things like generators to power pumps so as to keep crops watered, which is going to make it more expensive to produce.
“In the end, these costs would, unfortunately, be passed on to the consumer, which means food prices are likely to increase,” he said.
Municipalities need assistance
Van Reenen said agricultural businesses have a duty to assist municipalities that are buckling under the pressure of load shedding, in their areas of influence.
Municipalities, he said, are facing huge problems. This includes failing to collect rates, and mounting pressure to keep ratepayers on their books, given that many are moving off the national grid with alternate power.
“Kimberley has one of the highest tariff rates for municipal-supplied electricity in the entire country.
“If a business the size of ours decides to go off the grid to curtail the cost of production, Kimberley municipality would lose a significant contributor to their bottom line. On top of this, ongoing electricity tariff hikes mean it becomes uneconomical to produce.”
According to Van Reenen, this is a very real scenario that many businesses are contemplating, with disastrous consequences for municipalities.
Is there a solution?
It has been reported that urban metropoles like Johannesburg, Cape Town and Nelson Mandela Bay have plans to ditch Eskom.
However, assuming that the metros pay their power bills, there is a major problem with this plan, Van Reenen pointed out.
“The problem with this plan is that if municipalities go totally to independent power producers, Eskom will lose three major ratepayers – and this will further fuel the downfall of the state power utility,” he said.
Buying electricity back from the public
A possible solution could be that municipalities be willing to buy back electricity from the public. This is already in play with some municipalities, but Van Reenen suggested taking it a step further.
“If every household and business can sell back to the municipality in their area, the biggest portion of the problem can be addressed much quicker.
“[Also], it will cut through the red tape and there will be no opportunity for corruption to flourish.”
Van Reenen said some infrastructure changes would have to be made but this would be a small price to pay to reach the goal. “The effect of such a rollout could be that Eskom would then be able to supply manufacturing facilities without power interruptions.”
Agricultural communities need help
The Beefmaster Group is the largest private employer in the Kimberley area where it has its meat processing facility, while its feedlot is in Christiana in North West.
Beefmaster Group has been assisting the Lekwa-Teemane local municipality with its efforts to keep water supplied – and the pumps turned on – during load shedding.
“If I am trying to entice someone to come and work for me, and the town where they would live doesn’t have water because there is no power to turn on the pumps, and the school is crumbling because it cannot keep the lights on – so there isn’t a schooling facility for that person’s children –, then I am not going to be able to attract people to my business,” explained Van Reenen.
He added that communities and municipalities should be assisted with the applicable skill sets, otherwise everyone will suffer.
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