Nersa’s special power agreement with Silicon Smelters; template for the smelting industry?

Nersa finally published its agreement with Ferroglobe’s Silicon Smelters of South Africa outlining its agreement to give the silicon metal producer a special power rate for two years. The agreement might serve as a template for other smelters, i.e., manganese and chrome, to allow them to continue but at a special power rate.

There are separate pricing agreements for its two smelters, Polokwane and eMalahleni. The base prices will be adjusted annually by the producer price index. The average tariff will be adjusted up quarterly by 0.4¢ (ZAR) for every ZARXXX increase in the reference pride in the previous quarter. The reference price is RXXX per mt as published by the China Export Price for standard grade (5-5-3). the increase is effective until the tariff is equivalent to the average MegaFlex Tariff.

The smelters will make available approximately 80% of the applicable load for the System Operator’s 10 minute reserve (interruptible) for every weekday.

For the complete agreement, please download


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