South Africa eased antitrust rules to allow competitors in industries hit by high power costs to cooperate on negotiating cheaper power supply in a bid to prevent their total collapse, a move that potentially helps the country\u2019s ailing ferrochrome industry.<\/p>\n\n\n\n
Trade, Industry and Competition Minister Parks Tau changed the scope of an energy users\u2019 block exemption in the Competition Act in regulations published 5 January.<\/p>\n\n\n\n
The regulations allow firms operating in \u201cindustries in distress\u201d to jointly negotiate buying energy, share ownership of backup generation capacity and collectively work with suppliers as long as no price-fixing of goods and services takes place.<\/p>\n\n\n\n
While the regulations didn\u2019t stipulate which industries this affects, South Africa-based processors of ferrochrome and manganese \u2014 key ingredients in steelmaking \u2014 are idling operations and laying off thousands of workers, blaming high electricity prices for undermining the viability of their businesses.<\/p>\n\n\n\n
Competition from China has also hit domestic processors in South Africa, which has about three-quarters of the world\u2019s identified manganese-ore reserves.<\/p>\n\n\n\n
The country has grappled with rising electricity costs that have roughly tripled over the past 15 years, far exceeding inflation.<\/p>\n\n\n\n
The continent\u2019s biggest economy has also contended with inconsistent supply since 2008, owing to mismanagement and corruption at Eskom Holdings SOC Ltd., the state-owned supplier responsible for more than 80% of generation. <\/p>\n\n\n\n
Industry and consumers endured hours of daily power cuts for years through 2023, denting output, growth and confidence.<\/p>\n\n\n\n
In late December, Transalloys (Pty) Ltd., the operator of South Africa\u2019s last remaining manganese smelter, said it may have to cut as many as 600 jobs because of the cost of energy.<\/p>\n\n\n\n
Glencore Plc\u2019s ferrochrome unit said earlier in the month it would shutter two operations. In November, labour union Solidarity said Samancor Chrome Ltd. may cut almost 2,500 jobs as it curtails operations.<\/p>\n\n\n\n
South Africa\u2019s cabinet approved a plan in June to negotiate new electricity prices and introduce potential controls and taxes on chrome-ore exports.<\/p>\n","protected":false},"excerpt":{"rendered":"
South Africa eased antitrust rules to allow competitors in industries hit by high power costs to cooperate on negotiating cheaper power supply.<\/p>\n","protected":false},"author":59,"featured_media":807494,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[4939,18089,1998],"class_list":["post-847346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-competition","tag-dtic","tag-parks-tau"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/847346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=847346"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/847346\/revisions"}],"predecessor-version":[{"id":847347,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/847346\/revisions\/847347"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/807494"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=847346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=847346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=847346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}