Overview
- From 1 January to 31 December 2026, the Eskom tariff for the Glencore‑Merafe and Samancor smelters drops from about 136c/kWh to 87.74c/kWh.
- The approval is conditional on the state funding the difference between Eskom’s standard charge and the reduced rate rather than passing costs to other customers.
- The relief applies only to the two named operations, with Nersa stating that any similar requests from other smelters will be assessed individually.
- Regulators were told the 87.74c/kWh rate covers Eskom’s variable costs and certain contributions but not fixed costs, and that smelter closures could add roughly R12 billion to other customers’ costs.
- Both companies had begun shutdown and retrenchment processes due to power costs, and labour groups welcomed the lifeline while warning the temporary cut may not be enough to prevent some closures.