Energy17.10.2024

Truth about electricity usage in South Africa

The actual average electricity consumed by South African households is far lower than Eskom’s claimed figure of 30kWh per day, data from multiple reputable sources shows.

This raises big questions over the power utility’s assertion that its proposals for “cost-reflective” electricity tariff reform in South Africa will see average households paying roughly the same or just slightly more for power.

Eskom has been using a daily consumption figure of 30kWh for households for several years, despite electricity usage and population numbers changing radically.

One possible data source is the US Energy Information Administration (EIA).

In its last analysis published in 2021, the EIA calculated that South Africa’s electricity consumption per capita was 3,218kWh per year, working out to 8.8kWh per day.

With the average household in South Africa having about 3.4 people at the time of that analysis, their average usage would be about 29.92kWh.

However, using the calculation for household consumption would not be correct as the per capita analysis is based on Eskom’s total electricity sales for the year.

In 2021, the year for which the EIA published its findings, that figure was about 191,000GWh.

The number includes demand from large power users such as factories, mines, and agriculture, which account for the vast majority of electricity consumption in South Africa.

Residential customers only use about a fifth (19% to 22%) of the total Eskom electricity consumed in a year.

That means the actual daily consumption per household in 2021 would have been around 5.68kWh to 6.58kWh.

Solar power and energy companies in South Africa estimate the daily household consumption of their customers to be higher.

For example, power station manufacturer EcoFlow puts the number at 7kWh per day.

Solar component supplier PowerNSun reckons the figure is 15kWh per day for urban customers, which generally have higher electricity demands.

While varying widely from one company to the next, all estimates we could find were lower than Eskom’s claimed figure.

Another indication that the 30kWh daily consumption is a gross exaggeration is when one considers electricity demand in other countries.

In the UK, energy regulator Ofgem has estimated the average household consumes about 2,900kWh per year, or 8kWh per day.

Updated figure far below 30kWh

MyBroadband calculated a new average household consumption figure based on more recent Eskom consumption and South African population data.

Eskom has recorded 158,380GWh of electricity demand from 1 January to 13 October 2024, a period of 287 days.

Between 30,177.7GWh and 34,943GWh of the year-to-date consumption came from households.

Statistics South Africa’s General Household Survey for 2023 estimated that there were approximately 19 million households in the country by the end of last year.

89.9% had access to mains electricity, working out to about 17.08 million households.

On average, these households would have consumed between 1,767kWh and 2,046kWh in about nine and a half months.

Therefore, the average consumption per day would be around 6kWh or 7kWh, working out to roughly 185kWh to 214kWh per month.

Both figures are less than a quarter of Eskom’s average consumption figure.

While that is not a problem on its own, Eskom uses average electricity consumption to inform its tariff policies.

In Eskom’s retail tariff plan, submitted to the National Energy Regulator of South Africa (Nersa), the utility has proposed higher fixed tariffs and lower variable energy charges.

Eskom argues that this is necessary for more cost-reflective prices as it transitions into three separate entities.

The result is that lower-consumption users will see disproportionately high bill increases while electricity-hungry consumers will see their bills reduced.

The power utility has repeatedly said the changes would decrease the average bills of Homepower users, its direct residential customers.

It is difficult to see how that would be possible when considering the proposed tariffs and the actual average consumption we calculated above.

MyBroadband previously analysed the changes under Eskom’s 2023/2024 proposal, which Nersa had not adopted.

We found that users on Homepower 4, Eskom’s most common tariff for direct residential customers, would have been paying substantially more for electricity unless they consumed over 23kWh per day or 700kWh in a month.

For the calculated average of 185kWh, the monthly bill would have increased by 82% with Eskom’s proposed changes. The customer who consumed an average of 214kWh would be paying 72% more than in the

The former are more likely to be lower-income and middle-class households, while the latter are typically larger homes.

MyBroadband asked Eskom for its latest household average and median electricity consumption figures, but it did not provide feedback by the time of publication.

Although it has yet to publish its updated retail tariff plan for 2024/25, the utility has indicated that it would continue advocating for higher fixed costs and lower energy charges.

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