NTCSA Seeks New Mozal Power Deal While Protecting South African Consumers

NTCSA Chief Executive Officer Monde Bala said the organisation remains open to exploring feasible pricing and supply options.

The National Transmission Company South Africa (NTCSA) has reaffirmed its commitment to concluding a new electricity supply agreement with the Mozal aluminium smelter in Mozambique, while ensuring that South African households and businesses are shielded from any unintended cost burdens.

In its latest update, the NTCSA — a subsidiary of Eskom Holdings SOC Ltd — noted that the long-standing power supply agreement with Mozal has been in place for over 20 years, with all parties aware that a new agreement must be finalised by 15 March 2026. The smelter, one of the region’s largest industrial operations, requires an electricity price significantly below the direct cost of supply to remain globally competitive.

However, the NTCSA emphasised that such an arrangement is no longer financially sustainable, making it essential to craft a mutually beneficial solution. The organisation stressed the need for close cooperation between stakeholders in both Mozambique and South Africa to develop an arrangement that supports regional industrial activity while safeguarding NTCSA’s financial stability and ensuring fairness to South African electricity consumers.

NTCSA Chief Executive Officer Monde Bala said the organisation remains open to exploring feasible pricing and supply options. “A mutually beneficial solution, developed collaboratively with stakeholders in both Mozambique and South Africa, is essential to support regional industrial activity while ensuring the NTCSA’s financial sustainability and fairness to South African electricity consumers,” he said.

The NTCSA also clarified that the Negotiated Price Agreements (NPA) policy mechanism, administered by the National Energy Regulator of South Africa (NERSA), does not extend outside South Africa’s borders. This means that the tools typically used to support domestic industrial users are not applicable to the Mozal case.

Despite structural and pricing constraints, the NTCSA reiterated its willingness to find a viable arrangement that supports Mozal’s operations within a lawful and economically responsible framework. The company highlighted that protecting households and small businesses from unintended costs remains central to Eskom’s mandate.

The NTCSA said it has consistently communicated an appropriate price range over the past year to help secure a new agreement with the smelter, which remains one of its valued regional customers. Further updates will be provided as negotiations progress.