Finance
S.Africa's electricity regulator backs ArcelorMittal's bid for discounted tariffs
Published by Global Banking & Finance Review®
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
NERSA backs ArcelorMittal's request for discounted tariffs, but Eskom's approval is needed. Plant closures may lead to job losses.
(Reuters) -ArcelorMittal South Africa meets the criteria for discounted electricity tariffs in terms of set rules, the country's energy regulator said on Friday, backing a plea by the loss-making steelmaker.
The regulator, however, said it did not have the authority to dictate an electricity tariff and ArcelorMittal would have to negotiate favourable terms with state-owned power utility Eskom.
ArcelorMittal is winding down its money-losing South African long steel operations, which have been weighed down by high costs, including electricity expenses, while battling weak demand and an influx of imports.
The steelmaker petitioned the National Energy Regulator of South Africa (NERSA) to review a decision by Eskom to reject its application for discounted tariffs.
Eskom argued that ArcelorMittal did not meet the criteria for negotiated pricing agreements (NPAs), which are typically offered to energy-intensive industrial power users.
"NERSA considered the eligibility criteria and other factors
outlined in the NPA framework and concluded that ArcelorMittal South Africa substantially complied with the prescribed
criteria," the regulator said in a statement.
ArcelorMittal said this week it was winding down its long steel plants at Newcastle and Vereeniging as planned on September 30, after failing to secure government concessions on utility charges and import duties, among other demands.
The closure of the plants could result in the loss of more than 3,500 direct jobs, the company said.
ArcelorMittal said the state-owned Industrial Development Corporation, an 8% shareholder in ArcelorMittal South Africa, was conducting due diligence on the steelmaker.
(Reporting by Nelson Banya; Editing by Richard Chang)
NERSA concluded that ArcelorMittal South Africa substantially complied with the prescribed criteria for discounted electricity tariffs.
ArcelorMittal is winding down its money-losing South African long steel operations due to high costs, including electricity expenses, and weak demand.
The closure of the plants could result in the loss of more than 3,500 direct jobs, according to the company.
Eskom argued that ArcelorMittal did not meet the criteria for negotiated pricing agreements, which are typically offered to energy-intensive industrial power users.
The Industrial Development Corporation, which holds an 8% stake in ArcelorMittal South Africa, is conducting due diligence on the steelmaker.
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