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‘New Eskom tariffs will hit farmers’

Economy

Johannesburg - The proposed electricity price increase by power utility Eskom will have a negative affect on farming operations, Fawu said on Wednesday.

“We have argued that this proposed massive electricity hike will have a negative impact on the cost structure (not only) for manufacturers, but also for farmers,” the Food and Allied Workers' Union (Fawu) said in a statement.

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050910 Electricity pylons carry power from Cape Town's Koeberg nuclear power plant July 17, 2009. South Africa will need 20 gigawatts (GW) of new power generation capacity by 2020 and would require double that amount a decade later to meet rising demand, the country's power utility said September 7, 2009. Picture taken July 17, 2009. REUTERS/Mike Hutchings (SOUTH AFRICA ENERGY BUSINESS)

Farmers found it difficult to contain the increasing prices of energy and fuel, and therefore had no choice but to retrench workers to cut costs, it said.

“We call on the National Energy Regulator of SA not to grant Eskom such a ridiculous request.”

Nersa held public hearings into the proposed tariff increases earlier this month.

Eskom has asked for a 16 percent increase in electricity prices in each of the next five years. - Sapa

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