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[Ferro-Alloys.com] Eskom concludes 62c/kWh electricity tariff for Samancor Chrome and Glencore–Merafe Chrome ferrochrome smelters and embarks on the next stage of tariff interventions

The Eskom Smelter Task Team has concluded a 62c/kWh electricity tariff for Samancor Chrome and Glencore–Merafe Chrome ferrochrome smelters. The tariff intervention improves Eskom’s liquidity without requiring higher tariffs, additional Eskom borrowing, or further government support. It also provides Eskom with predictable sales volumes for up to the next five years and protects public investments made in the utility, as well as its ability to support reindustrialization and economic growth.

All concluded agreements remain subject to approval by the National Electricity Regulator of South Africa (NERSA). Eskom has today submitted an application to NERSA for approval of the 62c/kWh electricity tariff for the Samancor Chrome and Glencore–Merafe Chrome ferrochrome smelters. The dissemination of specific agreement details falls under NERSA’s purview, and the extent of such disclosure will be governed by its internal protocols and regulatory limitations, in line with the need to respect the commercial confidentiality of Samancor Chrome and Glencore–Merafe Chrome.

NERSA is expected to conduct a public consultation process in due course, as per the process.

“Without the success of Eskom’s turnaround over the past three years, delivered by our 40,000 employees, which restored consistent baseload electricity supply, for which there is currently no alternative source available to energy?intensive users, we would not have been in a position to support the ferrochrome industry or play a meaningful role in preventing job losses. Eskom will continue to work tirelessly with intergovernmental teams, labour, producers and stakeholders to balance Eskom’s financial sustainability and regulatory responsibilities so that it can play its part in delivering electricity to drive economic growth,” said Dan Marokane, Eskom’s Group Chief Executive.

Amendment of the current Negotiated Price Agreements (NPA)

The amended NPA is a medium?term solution of up to five years and enables a proactive, time?bound, case?by?case approach, allowing Eskom to tailor pricing and contractual structures to the specific commercial circumstances of each smelter, while ensuring transparency, fairness and regulatory alignment for all customers.

The ferroalloy and iron and steel segments are experiencing sustained pressure from global commodity markets, rising input costs and structural competitive challenges, and will be prioritised ahead of other smelter industry sectors. For these segments, pricing will be determined through a structured, bottom?up assessment that takes into account the cost of production, electricity intensity, and exposure to commodity prices. This is not a uniform approach; rather, it allows for tailored pricing solutions specific to each smelter.

This approach applies a consistent economic logic while retaining the flexibility to respond to sector?specific conditions. It is designed to avoid both under?support, which can result in plant closures, and over?subsidisation, which can distort competition.

This differentiated approach ensures that Eskom applies a consistent economic framework across the smelting sector, while avoiding the risk of unintended pricing benchmarks or cross?sector distortions, in support of a sustainable, long?term industry solution.

The collaborative efforts of government, labour and industry, through a structured process, will continue to deliver sustainable and responsible solutions that maintain industrial capacity while protecting broader electricity consumers.

Source: April 10, 2026 Friday, 10 April 2026: 

• [Editor:tianyawei]