Cost of Living

Electricity Cost Calculator

Estimate your monthly electricity cost based on kWh usage and tariff type.

Last reviewed: Tax year: 2026/2027Source: Eskom — Tariffs and Charges

What changed in 2025 — IBT is gone

Until April 2025, residential customers were billed under an Inclining Block Tariff (IBT): the first 350 kWh per month was cheap, the next 250 kWh was more expensive, and consumption above 600 kWh was at a punitive top rate. The structure penalised heavy users and rewarded conservation.

From 1 April 2025, NERSA approved Eskom’s tariff restructure that removed the IBT entirely for direct Eskom customers. Homepower residential tariffs are now unbundled into six line items: three variable charges (energy, ancillary service, network demand — all in c/kWh) and three fixed daily charges (network capacity, service & administration, generation capacity — all in R/day). Together these make up your bill, and the per-kWh portion is now flat regardless of consumption volume.

This is a structural change. Previously, “the first 350 kWh is cheap” was a real saving for low-volume users. That subsidy is gone; everyone now pays the same per-kWh rate. NERSA’s 2026/27 approval (effective 1 April 2026) pushed slightly more of the bill into fixed charges and slightly less into the per-kWh portion — which raises bills for low-volume users and softens them for heavy consumers.

Eskom Homepower & Homelight rates (April 2026)

NERSA-approved residential rates effective April 2026. Energy charge is the prepaid-bundled c/kWh (energy + ancillary + network demand) for Homepower; fixed charge is the sum of network capacity, service & admin, and generation capacity.
Tariff & supply sizeBundled energy (c/kWh)Fixed daily chargeNotes
Homepower 1 — Dual-phase 32 kVA / 3-phase 25 kVA355.56R23.02/daySmall dual-phase or 3-phase residential
Homepower 2 — Dual-phase 64 kVA / 3-phase 50 kVA355.56R42.68/dayMost common residential (larger homes, electric geysers)
Homepower 3 — Dual-phase 100 kVA / 3-phase 100 kVA355.56R84.33/dayHigh-demand homes (heat pump, pool, large electrical loads)
Homepower 4 — Single-phase 16 kVA / 80A355.56R17.86/daySmall single-phase residential
Homelight 20A — Prepaid, low usage (20A supply)270.30Embedded in energyLow-income prepaid; Free Basic Electricity (50 kWh) may apply
Homelight 60A — Prepaid, larger supply (60A / 80A smart meter)343.61Embedded in energyHigher-capacity prepaid; Free Basic Electricity (50 kWh) may apply
All values are NERSA-approved and inclusive of VAT, sourced from Eskom's "Schedule of Standard Prices effective 1 April 2026". Municipalities that on-sell Eskom power typically add a 5-15% markup — check your latest invoice for the actual rate.

Most South Africans don’t buy directly from Eskom — they buy from their municipality, which buys bulk from Eskom and resells. Municipal markup adds 5-15% on top of these rates. The City of Cape Town, eThekwini, and Joburg City Power all publish their tariff schedules annually.

What an average household actually consumes

Typical monthly electricity consumption (kWh) by household profile
Household profileWithout geyserElectric geyserPool + AC
1 person, small flat180 – 300350 – 500n/a
Couple, 2-bed flat300 – 450500 – 700700 – 900
Family of 4, 3-bed house500 – 700750 – 1,1001,000 – 1,500
Family of 4-6, 4-bed house700 – 1,0001,000 – 1,5001,300 – 2,200
The single biggest driver is the geyser — a 3kW element heating water for a family runs 4-8 hours/day = 360-700 kWh/month. Heat pumps and gas geysers cut this to 100-200 kWh.

Cost per appliance — what’s really driving your bill

Monthly cost of common appliances at R5.20/kWh (all-in effective rate for a typical Homepower 2 household, including amortised fixed charges)
AppliancePowerDaily useMonthly cost
Geyser (200L, 3kW)3,000W4 hoursR1,870
Heat pump (replacement)900W4 hoursR560
Pool pump750W8 hoursR935
Aircon (mid-room, ~12,000 BTU)1,200W4 hoursR750
Tumble dryer2,500W30 min × 4/wkR225
Kettle (boil 4× daily)2,000W12 minR62
Fridge/freezer (combo)~150W avg24 hoursR560
LED lighting (whole house)~80W avg5 hoursR62
Standby (TVs, decoders, chargers)~50W avg24 hoursR190
A R200/month standby load is invisible — phantom power from idle electronics. Switching off at the wall is genuinely worth ~R2,300/year for an average house at 2026/27 rates.

Worked example — typical Joburg family of 4

3-bedroom house, electric geyser, no pool, Homepower 2 prepaid

850 kWh/month consumption on the NERSA-approved Homepower 2 tariff effective 1 April 2026.

Monthly consumption
850 kWh
Bundled energy rate (energy + ancillary + network demand)
355.56 c/kWh
Energy cost (850 × 355.56 c/kWh)
R3,022
Fixed daily charges (R42.68/day × 30 days)
R1,280
Monthly bill
R4,302
All-in effective rate (incl. amortised fixed charges)
R5.06/kWh
Annual bill
R51,627
Geyser share (~50% of consumption)
R2,150/month
Switching to heat pump (saves ~70% of geyser cost)
R1,500/month saving
Heat pump payback (R30k installed)
~20 months
Annual bill at current usageR51,627

Prepaid vs postpaid — same total, different bill

Prepaid customers buy electricity in advance via a vendor (FNB, Standard Bank, Capitec, Pick n Pay, EasyPay). The total cost is identical to postpaid — but how the bill is presented differs:

  • Prepaid — pay-as-you-use. The three variable c/kWh charges (energy + ancillary + network demand) are bundled into a single rate shown on the meter and vending app. The three fixed daily charges (NCC, S&A, GCC) are still owed — Eskom deducts the monthly fixed total upfront from your first voucher purchase of the month before issuing kWh tokens. You see usage in real time, which makes behavioural change much easier. The downside is no buffer for cashflow shocks.
  • Postpaid — billed monthly in arrears. The invoice itemises all six line items separately, which makes audit easier but consumption visibility comes 4-6 weeks after the fact (when behaviour change is harder). Better for cashflow planning, worse for real-time visibility.

Same household, same total cost. The calculator’s “Bill type” toggle is presentation-only; the monthly figure doesn’t change. The bigger lever for your bill is household behaviour and the geyser, not the metering choice.

Free Basic Electricity (FBE) — for low-income households

Households registered as indigent with their municipality receive 50 kWh per month free under the Free Basic Electricity programme. The qualifying threshold is typically a household income under R3,500-R5,500/month (varies by municipality), and registration must be renewed annually.

50 kWh is enough for basic lighting, a small fridge, and a kettle for cooking — not enough for an electric geyser or heater. The intention is a safety net, not a substitute for full-service electricity.

Cutting your bill — high-leverage interventions

  • Geyser timer or heat pump. The single biggest line item in most homes. A R150 timer saves ~R300/month; a R30k heat pump saves ~R1,300-R1,600/month at 2026/27 rates.
  • Geyser blanket and pipe insulation. R400 once, saves ~R120/month for a decade. Best return-on-rand of any household efficiency intervention.
  • Switch to LED bulbs. Already largely done in most homes; if you still have halogens or incandescents anywhere, replacement pays back in 2-3 months.
  • Pool pump scheduling. Run during solar hours if you have panels, or off-peak if you’re on time-of-use tariffs (most prepaid customers aren’t — but worth checking your municipality).
  • Standby load audit. A R200 plug-in power meter (Kill-A-Watt equivalent) finds the worst offenders quickly. Old gaming PCs, set-top boxes, and home-office equipment are usual suspects.

How this calculator works

Enter your monthly consumption (or appliance usage) and your effective per-kWh rate. The calculator returns daily, monthly, and annual costs, and lets you model before-and-after scenarios for efficiency upgrades.

Your effective rate is on your most recent bill or in your prepaid receipt. If you’re unsure, divide your bill total by units bought (kWh) — that gives the all-in rate including service and network charges. Don’t use the headline c/kWh number alone; it understates the real cost by 10-20%.

Sources

Frequently Asked Questions