The National Transmission Company South Africa (NTCSA), a subsidiary of Eskom Holdings SOC Ltd, confirms its ongoing commitment to concluding a new electricity supply agreement with the Mozal aluminium smelter in Mozambique. This agreement will safeguard NTCSA’s financial stability while protecting South African electricity consumers from unintended cost impacts. The long-standing supply agreement between the parties has been in place for more than 20 years, with all parties aware that the current contract is due to expire on 15 March 2026.
To remain globally competitive, the Mozal smelter requires an electricity price significantly lower than the direct cost of supply. “It has become clear that this arrangement is not sustainable for NTCSA going forward. As such, a mutually beneficial solution, developed collaboratively with stakeholders in both Mozambique and South Africa, is essential to support regional industrial activity, while ensuring NTCSA’s financial sustainability and fairness to South African electricity consumers.
NTCSA will continue engaging with stakeholders in both countries to explore the feasibility of such an arrangement,” said Monde Bala, Chief Executive Officer of NTCSA. The Negotiated Price Agreements (NPA) policy mechanism provided by the National Energy Regulator of South Africa (NERSA) does not extend beyond South Africa’s borders. “NTCSA remains available and open to finding a solution for the Mozal smelter.
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Over the past year, we have consistently indicated an appropriate price range for the supply of electricity to secure a new agreement with our valued customer,” Bala concluded. NTCSA remains committed to supporting industrial operations within a lawful and economically sustainable framework that balances the needs of industry with the rights of all customers. Safeguarding households and small businesses from unintended cost impacts remains central to Eskom’s mandate.
Further updates will be provided as developments arise. Source: Eskom National Transmission Company South Africa (NTCSA) / Media Statement
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