09/09/2026
Before you sign a long-term energy contract, understand these Five numbers
A cheap-looking tariff can still be an expensive contract.
The real cost is usually in the numbers a proposal leaves out.
Most energy comparisons start and end with one figure: average cost per kWh. Electricity costs R2.50, solar costs R1.50, so you save R1. That calculation feels simple. It's also incomplete.
Before you sign anything, these are the five numbers worth understanding first.
Peak, standard and off-peak rates. Your plant doesn't use power evenly across the day, and neither does the tariff you're paying.
Your capacity charge. A growing share of what you pay Eskom isn't for energy at all, it's for the capacity you reserve, whether you use it or not.
Escalation. What the tariff does in year five matters as much as what it costs in year one.
Contract term. A PPA can run 20 years. That's a long time to discover the numbers didn't hold up the way they were presented.
Wheeling potential. Increasingly, the electricity you use doesn't have to come from your own roof.
A proposal built on the average rate alone hasn't actually tested your business case. It's tested a shortcut.
Request a load profile and tariff review with Nesa Power. https://nesapower.com/get-a-quote/
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Have you actually seen these five numbers for your plant, or just the one everyone quotes?