Nersa will consider similar applications from other smelters experiencing financial hardship as they are received. The regulator had previously granted the companies a six-month exemption from minimum electricity purchase requirements under their existing agreements, said Moneyweb. At the reduced tariff, Eskom covers variable costs plus contributions towards open-cycle gas turbines, renewable energy legacy charges and household subsidies, though fixed costs remain unmet. Other electricity users currently subsidise the two smelters by R6.5bn monthly. High electricity costs have rendered South African smelters uncompetitive globally, with closures threatening additional burden on remaining customers.