The South African Department of Electricity and Energy is expected to provide a special electricity solution for the ferrochrome industry.

September 28, 2025 - According to reports, South Africa's Minister of Electricity and Energy, Kgosientsho Ramokgopa, recently confirmed that the government is finalising an electricity package for the ferrochrome industry, which goes beyond the Negotiated Pricing Agreement (NPA) framework available to other electricity-intensive enterprises.

During a briefing on September 26, the minister noted that the industry has repeatedly highlighted the pressure high electricity prices place on the survival of smelters. To address this, he has obtained cabinet approval to engage in negotiations with the industry together with Eskom.

This special scheme requires cabinet approval because it includes "significant preferential terms" that exceed the scope of the standard Negotiated Pricing Agreement approved by the South African National Energy Regulator. Current policy allows eligible enterprises to receive preferential electricity prices, but the application threshold requires an annual electricity consumption of no less than 80 gigawatt-hours and a load coefficient higher than 70%.

Discussions with the ferrochrome industry also cover the electricity load required to maintain operating smelters and the possibility of restarting idle capacity. The minister emphasised that recent improvements in the Energy Availability Factor of coal-fired power plants guarantee a stable power supply, even stating, "Currently, we have ample megawatt-level electricity that is not being utilised."

Before formally announcing the scheme, the minister will explain to other high-energy-consumption industries why the ferrochrome industry is being prioritised for support. Additionally, the minister has met with several trade union organisations, whose members recently received Section 189 retrenchment notices from multiple smelters under the Labour Relations Act. The minister pledged to disclose the details to the unions once the scheme is finalised, stressing, "We will do everything to protect and save the South African economy." No specific timetable for the scheme's release has been announced yet.