Loadshedding predicted to cost sugar industry more than R700m

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Loadshedding predicted to cost sugar industry more than R700m: South Africa's sugar industry is set to lose more than R700m this year due to load-shedding, according to data compiled by SA Canegrowers.

“Most irrigated growers in KwaZulu-Natal and Mpumalanga operate on a Ruraflex system which allows them to pay a lower tariff for operating during low-demand times.

“But the converse also applies — growers pay a significantly higher rate for pumping during peak demand times. As a result of load-shedding, growers have been forced to irrigate whenever electricity is available, regardless of demand.”“Growers need a minimum of six hours of continuous energy for proper irrigation. As a result of the intermittency of the power supply disrupting irrigation, irrigated growers will lose up to 40% water capacity.

SA Canegrowers’ scenario modelling shows that continuous load-shedding at stages 4-6 will cost growers more than R723m in 2023. “An escalation to stages 6-8 could cost the industry more than R1.8bn. Anything beyond stage 8 could cost the industry more than R2.4bn,” said Russell.restricting load-shedding to stage 4 in irrigated cane growing areas during peak watering season;tax rebates for those investing in alternative energy sources.1-million livelihoods the sugar industry supports.”

 

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I wonder if anyone will provide an analysis on the impact loadshedding has had on industry as a whole 🤔

And… When they increase their prices, the Competition Commission will be on their back… Damned if they do, damned if they don’t…

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 /  🏆 41. in TH

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