Free State Agriculture Opposes Proposed Eskom Tariff Increases

Free State Agriculture (FSA), representing 2,500 commercial farming entities across 144 local farmer associations, strongly objected to Eskom’s proposed tariff increases at the NERSA public hearings held in Bloemfontein on 25 November. FSA emphasized that the agricultural sector, already grappling with rising costs and economic pressures, cannot sustain further electricity price hikes.

Impact on Farmers and Food Security
Free State farmers, as price-takers in the value chain, are unable to absorb the escalating input costs caused by consistent above-inflation Eskom tariff increases. The proposed hikes will exacerbate the economic strain on intensive agricultural operations like irrigation, dairy, and poultry farming. This, in turn, jeopardizes the region’s role as South Africa’s breadbasket, contributing significantly to the nation’s food security through staples like maize (43%), sunflower (58%), and beef production (19%).

Economic Reality: Affordability Crisis
FSA highlighted that current Eskom tariffs are already unaffordable. Since 2008, electricity price increases have consistently outpaced inflation, adding to the financial burden of farmers already dealing with rising labour costs, R/$-linked input costs, and frequent disaster losses without adequate state support.

According to Dr. Jack Armour, Commercial Manager of FSA, “Eskom’s inefficiencies, coupled with load-shedding and inflated costs from projects like Kusile and Medupi, have destroyed the economy. Farmers, who are critical to ensuring food security, are now paying the price. We demand accountability, a rationalized pricing strategy, and urgent reform at Eskom.”

Call to Action
Free State Agriculture is urging NERSA to consider the devastating consequences of approving these tariff increases. Eskom must prioritize efficiency, address its inefficiencies, and implement reforms that do not penalize paying customers like farmers. Restructuring Eskom’s operational costs and improving accountability is critical to avoid further economic harm.

FSA remains committed to advocating for affordable, reliable, and sustainable electricity solutions to safeguard the agricultural sector and South Africa’s food security.