Nersa Approves 62c/kWh Power Tariff for Ferrochrome Smelters as Eskom Grants 5-Year, 3-Year Terms
Updated
Updated · Sunday World · Jun 1
Nersa Approves 62c/kWh Power Tariff for Ferrochrome Smelters as Eskom Grants 5-Year, 3-Year Terms
8 articles · Updated · Sunday World · Jun 1
Nersa approved an interim discounted electricity tariff of 62 cents per kilowatt-hour for Samancor Chrome and the Glencore-Merafe joint venture, giving them relief from surging power costs.
Eskom said the deal runs for five years for Samancor and three years for the Glencore-Merafe venture after it sought approval last month and a public hearing was held this week.
Power charges for South African smelters have risen tenfold since 2008, helping push dozens of ferrochrome plants to close and costing the country its lead in processing chrome ore into ferrochrome to China.
Eskom said the framework needs no extra government funding, includes upside-sharing tied to market performance, and is structured so standard tariff customers do not bear additional costs.
After this temporary tariff ends, can South Africa’s metals industry survive the fast-approaching 2028 ‘gas cliff’?
Is South Africa sacrificing its green future by subsidizing a carbon-intensive industry with cheap coal power?
Is this massive power discount for industry a hidden tax on regular citizens, despite official claims?