Eskom confirmed on Friday that the Nationwide Power Regulator of South Africa (Nersa) had authorised the amended negotiated pricing settlement (NPA) framework for 2 ferrochrome producers that included an interim concessionary pricing association.
Eskom utilized on April 10 to implement a 62c/kWh tariff for the smelters and Nersa made the NPA determination following public consultations, which included public hearings held on Might 25.
CEO Dan Marokane mentioned the approval mirrored a balanced method to supporting strategic industrial capability whereas sustaining Eskom’s monetary and operational sustainability.
“The framework is structured inside a regulated surroundings, consists of acceptable risk-sharing mechanisms and doesn’t place further monetary obligations on customary tariff clients or taxpayers.
“Sustaining viable industrial demand stays essential for financial exercise, employment and long-term system stability,” Marokane added.
Eskom mentioned that whereas the period of the agreements differs—5 years for Samancor Chrome and three years for the Glencore-Merafe Enterprise—the core contractual phrases, pricing mechanisms and risk-sharing situations had been constant.
“The framework gives a stabilisation mechanism for each Eskom’s monetary place and the broader financial system.
“It helps continued electrical energy demand from the sector whereas sustaining jobs and financial exercise throughout the ferrochrome worth chain.
“Retaining this baseload demand additionally improves system utilisation and helps mitigate dangers related to fastened provide obligations, contributing to general system and monetary stability,” the assertion reads.
Eskom mentioned the framework wouldn’t end in further tariff restoration from customary tariff clients or taxpayers.
“The income variance related to the concessionary tariff is ring-fenced and can’t be recovered via future tariff mechanisms or Regulatory Clearing Account processes.
“The framework additionally requires no further authorities fiscal assist and consists of an equitable upside-sharing association linked to market efficiency.”
