KEETMANSHOOP – Electricity utility NamPower earlier this week proposed an 8.4% increase from the Electricity Control Board (ECB) for the 2026/2027 financial year in tariffs for supplying bulk electricity to distributors in the country. 

Information provided indicated that, should this tariff hike be approved, the cost of electricity supply will increase from the current 206.11c/kWh to 223.4c/kWh. 

Justifying the increase, NamPower pointed to carrying the burden of non-paying bulk energy-supplying customers, the sustainability of the energy utility to invest financially in capital projects to meet the national energy demand, and the need for new infrastructure, like transformers. 

During the opening remarks, Pinehas Mutota, ECB executive for economic and market relations, said the aim of the meeting derived from NamPower’s formal submission of its generation and transmission, referred to as ‘Bulk, Tariff Application’ for the 2026/27 financial year. 

‘Tariff setting remains a delicate balancing act, one that must reconcile three equally important objectives, namely, ensuring affordability for consumers and the broader economy, maintaining the financial sustainability of our utilities, which is essential for security of supply and longterm sector stability, and ensuring a cost-effective and efficient industry through prudent costs,” he said. Mutota continued: “We firmly believe that active participation from consumers, industry associations, businesses, local authorities and civil society enriches regulatory decision-making, as your input enables us to better understand the diverse needs and realities across Namibia.” 

Referring to the modalities to be followed, the senior manager elaborated that NamPower will first present their tariff application to stakeholders for their inputs and views, whereafter the entity will respond to the issues raised. 

The ECB will then consider all submissions in their final determination of the proposed tariff increase. 

Issues raised by stakeholders included challenge of small local authorities paying debts to NamPower, as most of its customers cannot afford electricity; the government considering subsidising the cost of buying electricity for disadvantaged groups and installation of prepaid electricity meters for customers to better manage their finances. 

Writing off interest accumulated through unsettled debts to NamPower and better maintenance of power transmission lines in rural areas, resulting in numerous supply interruptions, also featured in the meeting. 

-sklukowski@nepc.com.na