Eskom Confirmed Nersa Approved Ferrochrome Electricity Price of 62 Cents Rand/kWh

June 1, 2026:

South Africa's national power utility Eskom announced on Friday, May 29, that the National Energy Regulator of South Africa (NERSA) had formally approved a temporary preferential electricity tariff for struggling ferrochrome producers Samancor Chrome and the joint venture between Glencore and Merafe Resources.

The electricity price was set at 0.62 rand/kWh (approximately $0.0383/kWh).

Eskom formally submitted the preferential tariff application on April 10, and a public hearing was held earlier this week.

Eskom stated that the two enterprises had different agreement durations: 5 years for Samancor and 3 years for the Glencore-Merafe joint venture, but the core contract terms, pricing mechanisms, and risk-sharing conditions were identical.

South Africa is the world's largest chrome ore producing country, but due to excessively high electricity prices, it has ceded its position as the world's largest ferrochrome producer to China. Since 2008, energy costs for smelters have risen approximately tenfold, forcing dozens of plants to shut down.

Eskom emphasized that the framework involved no additional government financial subsidies.