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Erongo Red to increase power tariffs

Home National Erongo Red to increase power tariffs

Walvis Bay

The Erongo Region electricity distributor (Erongo Red) says electricity tariffs in the region will increase by 6.9 percent for the 2016/2017 financial year.

However, pensioners and low-income groups will only be charged an average increase ranging from 3.1 to 4.1 percent. Currently Erongo Red has 10 063 low-income customers and 4 827 pensioners.

The CEO of Erongo Red, Robert Kahimise, on Tuesday made the announcement during a media briefing at Walvis Bay.
Kahimise said the electricity distributor initially looked at a 4.7 increase for consumers, however the Electricity Control Board (ECB) granted NamPower a tariff increase of 16.71 percent.

“We had to go back and remodel our tariff application – and the ECB after a thorough review of the application granted us an effective average tariff increase of 6.9 percent,” he said.

He explained that Erongo Red is not primarily profit-driven but rather it strives to provide quality affordable service to electricity consumers while investing in infrastructure.

“We are fully aware of the impact an electricity increase has on our customers, including businesses. As per the board directives, we have looked into possible ways to make electricity affordable,” said the CEO of Erongo Red.

“Since 2012, we have put measures in place to cushion the impact of electricity increase on our customers, especially the pensioners and low-income segment in our communities. Thus, despite the increase Erongo residents still pay the lowest for electricity,” he said.

According to Kahimise, Erongo Red in 2015/2016 spent almost N$15 million subsidising the cost of electricity for pensioners and the low-income segment.

“That subsidy supports over 10 000 customers throughout the region of whom 4 827 are pensioners. Erongo Red also subsidizes the prepaid box installation for pensioners and the low-income group. In other words, these groups do not pay for the prepaid box and the installation thereof,” Kahimise explained.