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ECB concerned about lack of subsidy claims  …as electricity distributors claimed only N$90m for relief

ECB concerned about lack of subsidy claims  …as electricity distributors claimed only N$90m for relief

Responding to a massive public outcry on the persistent increase in electricity tariffs, government last year lent a much-needed helping hand and provided N$365 million subsidy for 2024/25. This injection of capital relief was intended to ease the rapidly-escalating cost of living for struggling Namibians. 

However, Electricity Control Board CEO Robert Kahimise yesterday disclosed that distribution licensees only claimed N$89 203 106 out of N$115 million allocated to them. Out of 17 licensees, five did not claim anything, and are urged to claim in order to provide some financial respite required by desperate Namibians reeling from the high cost of living. 

“These licensees are further urged to put in their claims. This is an area of concern to us as a regulator,” said Kahimise during a press briefing yesterday.

These entities had to submit claims or invoices to receive their portions of the subsidy amount. 

Kahimise added that approximately N$251 million of the N$365 million has already been set aside to assist NamPower to execute its mandate, and ensure uninterrupted security of electricity supply. However, the remaining N$115 million was to be utilised by the distribution utilities to lessen the impact of the electricity tariff on their customers for the said period. 

Consumers are paying the same tariffs as per the schedule of approved tariffs for 2023/24.

Last year, Kahimise noted there is a substantial shortage of energy in Southern Africa at this stage and this situation will prevail over the next several years until enough new generation and transmission capacity has been added.

“The drought situations in countries like Zambia and Zimbabwe, where Namibia imports her power from, makes it necessary that NamPower has sufficient funds to procure power from alternatives when necessary to ensure security of supply,” the ECB CEO added.

Furthermore, Kahimise said in preparation for the 2025/26 period bulk electricity tariffs all licensees going forward will present their tariff applications directly to end- consumers in their designated areas. 

“This is to enhance end- consumers’ involvement in the determination of end-consumers tariff,” he said.

He further urged licensees to apply on time for their annual tariff reviews this year, after the announcement of the bulk tariff in May 2025. 

“As we continue to remind the licensees, those that do not apply for tariff adjustments in time to coincide with the implementation of the bulk tariff from 1 July will lose revenue because they will be selling electricity based on outdated tariffs while purchasing on new tariffs.

We want all licensees to take this regulatory directive seriously to avoid unnecessary inconveniences to the customers,” warned the CEO. 

-mndjavera@nepc.com.na