[SMM Flash News] Nersa Approves Eskom's Discounted Tariff for South African Ferrochrome Producers

Published: May 30, 2026 23:21

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South African utility Eskom confirmed that the National Energy Regulator of South Africa (Nersa) has approved an amended negotiated pricing agreement (NPA) framework, granting an interim concessionary tariff of 62c/kWh to two major ferrochrome producers, Samancor Chrome and the Glencore-Merafe Venture. Eskom CEO Dan Marokane noted the deal balances support for strategic industrial capacity with the utility's financial sustainability, ensuring no additional burden on standard customers or taxpayers. The agreements, spanning five years for Samancor and three years for Glencore-Merafe, aim to sustain baseload demand, protect jobs across the ferrochrome value chain, and feature an upside-sharing mechanism linked to market performance without requiring additional government fiscal support.

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