Eskom’s “cost price” is a moving target because it depends on whether you are looking at the Primary Energy Cost (the fuel to make the power) or the Average Cost of Supply (which includes their debt, salaries, and infrastructure maintenance).
As of April 2026, here is the breakdown of what it costs Eskom to produce a kilowatt-hour (kWh) versus what they charge you.
Eskom’s Primary Energy Cost (Production Only)
This is the “raw cost” of the fuel used to generate power. Based on the most recent financial data, the cost varies wildly depending on the source:
| Power Source | Estimated Cost per kWh (Primary Energy) |
| Nuclear (Koeberg) | ~12c – 15c |
| Coal | ~55c – 65c |
| International Purchases | ~90c – R1.00 |
| Renewable IPPs | ~R2.10 – R2.40 |
| Diesel (OCGTs) | R6.50 – R7.50 |
The Average Generation Cost: When you blend these together, Eskom’s average cost for just generating the energy is roughly R1.10 to R1.30 per kWh.
The Full “Cost of Supply”
To keep the lights on, Eskom has to add the costs of transmission lines, municipal distribution, debt servicing, and staff.
For the 2026/2027 financial year, NERSA has calculated the “Allowable Revenue” based on a Customer Average Tariff of approximately R2.47 per kWh.
This means that for Eskom to “break even” and cover its massive debt obligations, it effectively needs to receive about R2.50 for every unit sold across the entire country.
The “Cost vs. Price” Reality for Gqeberha
The discrepancy between Eskom’s cost and the consumer’s price is where the “11.2% hike” pain lives.
Eskom’s Wholesale Price to NMB: Roughly R1.80 – R2.00 (depending on time of use).
The Municipal Markup: The Nelson Mandela Bay Municipality adds a margin to cover local grid maintenance and “non-technical losses” (theft).
The Consumer Price: Most residential users in the Bay are now paying between R3.20 and R4.57 per kWh (including VAT).
Why this matters for “Measure to Manage”
The fact that it costs Eskom R7.00 to make a unit of diesel power but they are forced to sell it to a municipality for R1.80 is why the “Debt Tranches” are being added to your bill in 2026. You are essentially paying for the “under-recovery” of previous years.
The key to reducing your electricity bill is you MUST control the number of units you use. Every kWh you save isn’t just saving R1.30 of power; it’s saving R4.57 of your hard-earned money. The Shelly Wave Pro 1 will help you Measure and Manage your consumption.
