A strong interdependency exists between water and coal-generated electricity in South Africa. Hence energy savings, especially in the residential sector during electricity peak demand periods, should automatically also bring about water conservation. The biggest impact on domestic-energy savings may be achieved by concentrating on effective ways of heating water. This paper therefore presents measured results obtained by evaluating various technical and financial feasible options and strategies. The findings are prioritised to enable the authorities to decide which options to follow in the recommended ‘Integrated Resource Plan’. Other developing countries, which also have a coal-based economy, should be able to apply the lessons learnt from these findings and thus leap-frog their decision-making process.