Analysis

Rand Water's Cost of Electricity Has Risen 76% Since 2020

Rand Water's cost of energy rose from 120.2 to 211.7 cents per kWh between 2020 and 2025, up 76%, while energy use per megaliter stayed near 1.40 MWh.

Rand Water paid 211.7 cents per kilowatt-hour for energy in 2025, up from 120.2 cents in 2020, a rise of 76%. The energy it used to deliver each megaliter barely changed over the same period, moving from 1.36 to 1.40 MWh. The increase came from the price of power, not from more pumping.

Power tops the risk list

Rand Water ranks the deteriorating availability, reliability and quality of electricity first among its top 10 strategic risks for FY 2025. On January 27, 2026, a motor explosion disrupted operations at its Zuikerbosch plant. In September 2026, power interruptions hit supply to Emfuleni, parts of Johannesburg and the West Rand, Madibeng and Rustenburg. On September 10, 2026, government announced a joint committee with Eskom and City Power to address them.

What a kiloliter costs in power

At 1.40 kWh per kiloliter and R2.117 per kWh, electricity costs Rand Water about R2.96 for every kiloliter it supplies. Its electricity emissions were 2,126,882.84 metric tons in 2025, against 2,132,913.40 in 2024, or about 1.27 tons per megaliter of average supply.

Building its own supply

Rand Water's 2026–2030 plan allocates R12,759 million to a Strategic Goal Delivery Unit with four growth pillars. One is "Increased Self Reliance to Energy Supply", aimed at "minimal to no interruptions" to operations, including green energy through independent power producer programs.

Which energy projects come first, how they fit a R41.1 billion capital plan, and what Rand Water's power exposure means for reliability before Lesotho Highlands Phase II water arrives are covered in the report. The full report, Water Utility of the Future: Rand Water, is available for USD 499. For a free overview, read the Rand Water Utility Snapshot.

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