7 Days Until NERSA decides on the 32% Tariff Hike for 2023

The High Court of South Africa (Gauteng Division) has granted the National Energy Regulator of South Africa (Nersa) an extension, to January 12, to make the final decision on Eskom’s revenue application for the 2023/24 financial year.

The regulator was previously required to make a decision by December 24.

If NERSA signs off on Eskom’s request for a 32% tariff hike effective from April 2023, the country’s agricultural sector will not only substantially go down in costs but consumers will ultimately have to pay for this massive hike, especially when it comes to poultry, experts warn.

“If the tariff hike which is four times the current rate of inflation, the socio-economic impact on the poor will be immediate and disastrous. Energy poverty will increase exponentially as people disconnect from the grid due to unaffordability; small businesses will perish; tens of thousands will join the ranks of the unemployed and South Africa will face possible unrest,” said DA Shadow Minister of Public Enterprises, Ghaleb Cachalia MP.  

While the country struggles to get by with constant load shedding, NERSA is expected to take a decision on whether to grant Eskom the 32% tariff increase.

For Astral Foods, one of Mzansi’s leading integrated poultry producers, the potential hike is of great concern. According to Astral Food’s 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.

Van Heerden adds that load shedding has already impacted business badly and all processing facilities are feeling the heat.

“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.”

Source: Engineering News, Food for Mzansi, All Africa, image from Twitter: @NERSA_ZA

Doctor Mahlaule

Doctor Mahlaule previously worked as a Freelance Journalist at Find-it SA where he was responsible for writing news articles and sharing them on social media platforms. Doctor Mahlaule holds a Diploma in Journalism, BA in Communication Science and a BA Honours in Media Studies. Doctor began his journey as a knowledge Management and Communications Intern at Zenex Foundation. He was responsible for support in event management, social media, website maintenance, writing and brand management. On weekends Doctor attends prison ministry and shares the scriptures with inmates at Krugersdorp prison and plays soccer in the afternoon on some weekends. He has a passion for reading and writing and enjoys going out with friends and socialising in his spare time. He has a one-year-old son and is planning on getting married soon. When asked about what keeps him going, he said: “My family keeps me going. I’m the man I am because I come from a loving home. I have a very supportive family who always encourages me to keep pushing hard.”

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