The Energy Regulator, has now recommended ArcelorMittal South Africa (AMSA) approaches Eskom, to reduce its tariff.
The application is for a six-year Negotiated Pricing Agreements (NPAs) for the company’s Newcastle and Vanderbijlpark steel manufacturing plants.
Back in September and October 2024, Eskom rejected an application from AMSA, to lower tariffs in terms of the provisions of the NPA Framework.
Eskom rejected the application, stating that AMSA failed to comply with the requirements and/or the criteria stipulated in the NPA Framework.
In terms of clause 12.10 of the NPA Framework, Eskom had to submit its recommendation to NERSA for approval.
At a meeting held on the 28 August 2025, NERSA decided that AMSA meets the eligibility criteria prescribed in the Interim Long-term Negotiated Pricing Agreement Framework (NPA Framework).
Charles Hlebela, Spokesperson of NERSA, said in a statement, the NPA Framework also enables AMSA to petition NERSA regarding Eskom’s decision.
“In this regard, AMSA invoked section 6.1 of the NPA Framework by petitioning NERSA to review Eskom’s decision in line with sections 12.12 and 12.13 of the NPA Framework.”
He also said NERSA conducted a comprehensive assessment of AMSA’s information submitted to Eskom, considering the eligibility criteria and other factors outlined in the NPA Framework and concluded that AMSA substantially complied with the prescribed criteria.
Nomfundo Maseti, Full-Time Regulator Member Responsible for Electricity Regulation, said ”it will be AMSA’s decision to approach Eskom, following the Energy Regulator’s decision, to apply for and negotiate a favourable tariff. NERSA’s role is to implement and enforce the NPA Framework. This means that NERSA does not intervene in price or tariff negotiations on behalf of customers.”