Moneyweb reports that a decision by energy regulator Nersa could come too late to save up to 3,000 jobs of employees and contractors, as high electricity costs have rendered silicon metal production in SA uncompetitive since 2016.  

At its electricity sub-committee meeting on 3 May, Nersa decided to publish for public comment an application from Eskom to grant eMalahleni-based Silicon Smelters (SS) discounted short-term tariffs.  Given the procedures now involved, a decision might realistically only be forthcoming towards the latter part of the year.  Nellis Bester, CEO of SS, commented that the company cannot compete against producers on the international market for specifically silicon metal due to electricity costs that are three to five times higher.  In some other countries, governments have come to the aid of the industry by lowering electricity costs.  Bester added:  “We have seen this coming as long as five years ago and made numerous presentations in the last years to Nersa, Eskom and other government institutions.”  Eskom has agreed to discounted tariffs, but needs regulatory approval to implement them and so submitted an application to Nersa before December last year.  Now the company has been forced to issue a section 189A notice to the unions at its Polokwane smelter in order to engage in a process of negotiations which might lead to retrenchments.

• Read this comprehensive report by Antoinette Slabbert in full at Moneyweb

Get other news reports at the SA Labour News home page