Energy advisory firm Meridian Economics has questioned the process followed by the National Energy Regulator of South Africa (Nersa) in approving 54% electricity tariff relief for chrome producers Glencore-Merafe and Samancor, a decision it estimates will cost about R16.6bn.In its submission to Nersa as part of the regulator’s public participation process, Meridian Economics said the information provided by Nersa withheld basic information needed for meaningful public participation.Information the firm said should have been public includes the price offered, how it was determined and what it costs Eskom to supply the power to the companies.Other information that Meridian believes is in the public interest is the impact of the relief on Eskom’s other customers and taxpayers, and the job impact if the same concessions were offered to other customers in other industries.Meridian says that information is crucial, especially when considering the sums of money involved. It put the cost of the relief at R16.64bn a year for the duration of the negotiated price agreements (NPAs).It says that total amounts to the annual difference between the standard megaflex tariff of 192c/kWh and the NPA of 62c/kWh that the companies will pay.“Either Nersa does not have this information (without which it cannot make a rational decision as required in administrative law) or it is not releasing it to the public (but no lawful reasons have been specified to justify non-disclosure),” the firm’s submission reads.“This procedurally unfair process has excluded the public from being able to comment meaningfully, including experts, and will make the decision highly vulnerable to judicial review and possible future reversal by the courts.”Nersa on Friday said it has approved amendments to Eskom’s NPA with Samancor Chrome for five years and that of the Glencore-Merafe Chrome Venture for three years. Both amended NPAs come into effect from Monday.One of the issues the regulator said it considered is the jobs that will be saved due to the relief.“Samancor Chrome supports about 2,230 direct jobs and 2,665 indirect jobs. It also sustains about 3,935 permanent mining jobs and 5,864 indirect jobs across Mpumalanga, Limpopo and the North West,” Nersa said.Additional employment is created through corporate functions and contractor activities linked to maintenance, shutdowns, rebuilds and capital projects. Glencore-Merafe sustains 2,059 direct jobs and a further 1,333 contractor positions across its operations in the Limpopo and North West provinces.“Beyond its direct workforce, the venture is estimated to support about 23,744 indirect jobs through broader economic multiplier effects and linkages with the chrome and platinum mining value chains.”The Glencore-Merafe venture had completed the retrenchment of workers and mothballing its smelters due to high energy costs that have seen China seize the initiative and become the world’s largest ferrochrome producer despite South Africa having the largest chrome reserves.On Friday, Glencore-Merafe said the approval of the NPA has resulted in it putting the brakes on the retrenchment process it announced last year.“This approval represents a significant milestone and an important step towards stabilising operations and supporting a more sustainable future for the venture’s smelting business,” it said.“Discussions with Eskom are ongoing to finalise the detailed terms and conditions of the NPA to give effect to the tariff. These terms remain critical in determining the commercial viability and long-term sustainability of the tariff solution.”