Engineering News 30 November 2012.
JOHANNESBURG (miningweekly.com) – Ferrochrome producer Hernic would temporarily shut down two furnaces at its De Kroon operations on December 1, as it entered a new power buy-back programme with State-owned Eskom.
Hernic, which completed its first buy-back agreement with the constrained power utility in June, would restart the furnaces in March.
Under the buy-back programme, Eskom provides compensation to companies that are able to reduce their demand for electricity temporarily, while sustaining employment levels and meeting existing contractual commitments…
(Editor’s note: The condition in the paragraph above imply that the company would not lose anything by using less energy anyway – so why pay them to do so? Incentivise them through suitable tariffs.)