Keetmanshoop proposes 7% electricity hike

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Keetmanshoop proposes 7% electricity hike

Suzith Tjitaura

 

KEETMANSHOOP – Keetmanshoop mayor McDonald Hanse says the municipality has proposed to the Electricity Control Board a 7% tariff increase for the 2024/2025 financial year.

He said this during a community consultation meeting on Tuesday, attended by ECB officials, Keetmanshoop Electricity Business Unit (KEBU) officials, councillors and community members to get input from the community regarding the proposed increment.

“Historically, the impact on our residents has often exceeded the approved increase. However, this year, in a concerted effort to alleviate the financial burden on the people of Keetmanshoop, we have taken a different approach. Through strategic adjustments, we managed to submit a proposal of 7.1%, which is notably less than the 8% proposed by NamPower,” said Hanse.

He said one significant change the municipality has implemented is on the social tariffs for pensioners. This was capped at 15 amps, which limited its usefulness. This year, the municipality increased it to 40 amps, enabling pensioners to participate in a tariff meant for them to purchase electricity at a more affordable rate, thereby enhancing their quality of life.

The mayor said places of mass worship such as churches have also faced considerable challenges due to their rate structure, and to support such important community centres, the municipality proposed converting their rate to the general tariff, which should provide some much-needed relief.

“We have taken steps to reduce the notified maximum demand of Keetmanshoop from 8MW to 7MW. This decision, backed by thorough studies, will contribute to a reduction in tariffs for our residents and a reduction in the NamPower bill,” he added.

The mayor further said the municipality is exploring alternative energy sources such as solar power through a modified single-buyer model, noting that such an initiative, once realised, will greatly benefit the community by providing a sustainable and cost-effective energy solution.

“The municipality is committed to ensuring that residents are not unduly burdened by electricity costs, as we are working tirelessly to find innovative solutions and make strategic decisions that will benefit all of us,” said Hanse.

KEBU acting strategic executive Lee Mwemba said the total budget for KEBU for the 2024/2025 financial year is N$116572 934. Of this amount, about N$73 million, which translates to 63%, goes to NamPower, while N$13 million, translating to 11%, goes to salaries, and N$18 million (which represents 16%), goes to the operational budget.

An additional N$6 million, which is 6% of the budget, goes to the municipality as a Local Authority Surcharge. 

-Nampa