What is the approved discounted electricity tariff for ferrochrome smelters in South Africa, and who are the beneficiaries?

The National Energy Regulator of South Africa (Nersa) has approved an interim discounted power tariff of 0.62 rand ($0.0383) per kilowatt-hour for two ferrochrome producers: Samancor Chrome and the Glencore-Merafe Resources joint venture. This tariff was applied for by Eskom and confirmed by a Nersa spokesperson to Reuters.

How long will the discounted tariff last for each beneficiary, and what key financial safeguards does Eskom highlight about the framework?

The discounted tariff will last five years for Samancor Chrome and three years for the Glencore-Merafe joint venture. Eskom states the framework requires no additional government fiscal support, includes an equitable upside-sharing arrangement linked to market performance, operates within a regulated environment, incorporates appropriate risk-sharing mechanisms, and places no additional financial obligations on standard tariff customers or taxpayers.

South Africa's Eskom Says Regulator Approves Discounted Power Tariff for Ferrochrome Smelters

May 29, 2026

Eskom confirmed regulator Nersa approved discounted power tariffs for struggling ferrochrome producers Samancor Chrome and a Glencore-Merafe joint venture. This initiative aims to mitigate high electricity costs that previously caused South Africa to lose its dominance in chrome processing to China.

reuters

2026-05-29

South Africa's Eskom Says Regulator Approves Discounted Power Tariff for Ferrochrome Smelters

South Africa's Eskom Says Regulator Approves Discounted Power Tariff for Ferrochrome Smelters

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