Friday, 27 February 2026: In December 2025, Eskom signed a Memorandum of Understanding (MoU) with the Glencore‑Merafe Chrome Venture, following constructive engagements with the Minister of Electricity and Energy and organised labour. This followed both smelters activating the hardship provisions of their existing Negotiated Pricing Agreements (NPAs) as market conditions deteriorated and electricity costs became increasingly difficult to absorb. As a first step, a time-bound tariff intervention of 87.74c/kWh was introduced in January 2026 for a period of 12 months. While this helped stabilise operations temporarily, it also highlighted the urgency of establishing a more sustainable, long‑term solution.
“Eskom’s priority remains balancing industrial support with our responsibility to ensure a sustainable electricity supply. We remain committed to working with government, labour, and industry to safeguard jobs while maintaining financial discipline. It is against this backdrop that Eskom and the Board have supported a framework towards a tariff of 62 cents per kilowatt-hour, with specific terms and conditions attached. The proposed contract and framework aim to provide stability to the ferrochrome industry by supporting its recovery, while Eskom identifies viable pathways toward a more appropriate price trajectory for industries in distress, subject to NERSA approval. This framework reflects Eskom’s ongoing commitment to enabling industrial growth in line with our nation’s priorities,” said Eskom’s Group Chief Executive, Dan Marokane.
This solution is a culmination of collaborative work across relevant stakeholders. The safeguarding of households and businesses from unintended cost impacts remains central to Eskom’s mandate.
About Eskom and Electricity – Smart Grid Initiatives: Eskom is exploring smart grid technologies for efficient electricity distribution.
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Hans Karlsen grew a start-up from zero to $1.6 million revenues in first two years of operation. Over and above being a successful startup founder, Karlsen is a natural leader, enabler, engineer and negotiator with over 25 years of industry experience in a variety of high technology sectors. Karlsen has served as a CEO, managing director, board member, senior advisor and finance director (CFO). He describes himself as a “serial entrepreneur” with the drive, persistence, passion and ability to identify and pursue high-value opportunities.