Eskom has arrived at a position where it can turn its attention to determining the appropriate pricing in support of the various sectors of the economy – especially vulnerable sectors, says Eskom group CEO Dan Marokane.

Participating in a panel on ‘Progress through private sector partnerships’ at the Investing in African Mining Indaba 2026 in Cape Town this week, the power utility boss said the percentage of time Eskom was able to meet demand from a supply perspective stood at 9% just over two years ago.

“Now we are sitting at over 98% in terms of coverage as far as supply and demand are concerned.

“We are now in a position where we have sufficient electricity. Of course, we know that the economy needs to grow at a much faster rate than what it is currently doing, and we need to bring about capacity to support that.”

This meant that the current focus was “on driving costs”, he added – on finding “pricing that is appropriate to support the various sectors of the economy, and also alleviate the hardships that society in general, especially the vulnerable, are feeling. We can now turn our attention to get to the right price points for the various customers that we have”.

Marokane’s comments come on the back of the National Energy Regulator of South Africa in January approving Eskom’s application for a 35% reduction in electricity tariffs for a 12-month period for ferrochrome producers Samancor Chrome and Glencore-Merafe.

The smelters initially sought a 70% discount on their current tariff (136c/kWh) – a price point they argued would ensure that they remained internationally competitive.

That would have seen them paying about 62c/kWh. Instead, they will now be paying 88c/kWh.

More than a dozen smelters have shut down in South Africa in recent years – leading to significant job losses – owing largely to high electricity costs which have surged by more than 900% since 2008.

The question, however, is how the smelter price cuts will be funded. The National Energy Regulator of South Africa’s approval is subject to the government closing the gap between the current and new tariff.

Marokane said it was important to have the conversation in context of the ferroalloys industry as one of South Africa’s unique endowments, with the country in possession of the world’s largest chrome resources.

“The conversation we then have…is how to set up an electricity pricing strategy that promotes the areas that we are strong in, that protects the vulnerable, and that ensures that the producers of electricity are sustainable.

“This is the crisis on our doorstep at the moment. How do we protect these jobs? How do we maintain our country’s competitiveness in this sector?

“We have some ideas we are discussing, and it will take a little bit of time, but we see a pathway – we need to be bold and follow through.

“We’ll respond in time to really assist this vulnerable sector, and we do so mindful that other sectors may require similar interventions.”

Marokane noted that it was important to ask how South Africa should move from this one short-term intervention in a single sector to a position where it could work out a model on what interventions such as these should like across more industries.

“From an Eskom perspective we understand that the current price path is not sustainable for the country to achieve the kind of growth rates we need,” he added.