BusinessLive reports that as hearings into Eskom’s proposed tariff increase kicked off on Monday, the ferroalloy industry warned it would not survive a double-digit increase in electricity prices.  

Eskom has applied for a 15% annual hike in the power price for the next three years.  The national energy regulator will take a decision after three weeks of public hearings.  “Should the 15% increase be affected then there will be little industry left to sell the electricity to and thousands of jobs linked to the ferroalloys industry will be at risk”, said Chabisi Motloung, chair of the Ferro Alloys Producers Association (Fapa).  The producers, represented by Fapa, are significant power users as they typically run smelting operations and account for 10% of Eskom’s power consumption and about a tenth of its revenue.  Fapa said 18,530 direct jobs and 129,000 indirect jobs were at stake.  “There is simply no more place for any further double-digit increases as industry has already gone through vigorous cost-cutting measures including retrenchments,” Motloung pointed out.

• Read Lisa Steyn’s report on this story in full at BusinessLive

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