Eskom's Power Price Cut: A Lifeline for South Africa's Ferrochrome Firms

Eskom, South Africa's power utility, slashes electricity prices by 29% for two ferrochrome companies to prevent massive job losses. The firms will now pay 62 cents per kilowatt-hour. Soaring electricity costs have crippled the nation's smelting sector, leading to potential broader tariff relief considerations.

South Africa's power utility, Eskom, has announced a significant 29% reduction in electricity prices for two struggling ferrochrome companies, Samancor Chrome and a Glencore-Merafe Resources joint venture. This move aims to avert thousands of job losses, as the firms will now pay 62 South African cents per kilowatt-hour, down from 87.74 cents.

The country's smelting sector is facing a severe crisis due to skyrocketing electricity costs that have multiplied over 900% since 2008. This financial strain has already forced numerous smelters to shut down operations, intensifying the threat of economic instability and job cuts in the industry.

Electricity Minister Kgosientsho Ramokgopa highlighted that while the tariff reduction initially targets these two operations, the government is also contemplating broader relief measures for the entire smelting sector. This consideration underscores the urgent need for a sustainable resolution to the escalating electricity crisis.