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Eskom’s Secret Discount Deal Shakes South Africa’s Power Pricing System
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2 hrs agoEskom has struck a controversial electricity pricing agreement that will see two of South Africa’s biggest industrial players, Samancor Chrome and the Glencore–Merafe Chrome Venture, paying a sharply reduced tariff of about 62 cents per kilowatt-hour. The deal replaces a temporary rate of 87.74c/kWh and comes after both companies warned that rising electricity costs were threatening their survival and could force large-scale job losses in the ferrochrome sector.
The agreement is not just about cheaper power—it represents a strategic attempt by Eskom to stabilise demand from energy-intensive industries while protecting thousands of jobs in a sector critical to South Africa’s export economy. The utility says the arrangement improves its financial stability by securing predictable long-term electricity sales without relying on government bailouts or raising general consumer tariffs.
However, the deal is still subject to approval by the National Energy Regulator of South Africa (NERSA), which is expected to open public consultations before finalising it. Eskom has framed the arrangement as a “targeted pricing model” designed to balance industrial competitiveness with its own sustainability goals.
At the same time, the utility has previously warned that such negotiated discounts can create tension in the system, as they may shift financial pressure onto other electricity users if not carefully managed.
The outcome of this deal could set a precedent for how South Africa prices electricity for its most power-hungry industries in the future.