Electricity consumers, which is basically every individual and business in the country, were yesterday slapped with another increase in an already challenging economic environment. Announcing six increases averaging at 7.7%, Electricity Control Board (ECB) CEO Robert Kahimise said the regulator is cognisant of the fact that the economy is depressed but said Namibia is equally dependent on reliable and affordable electricity supply.
“It is, therefore, the responsibility of the regulator to ensure a sustainable electricity industry at affordable tariffs. The ECB will continue to monitor and ensure that operational costs are contained and will put in place measures to ensure effective controls and operational efficiencies,” said Kahimise at yesterday’s media briefing.
The latest price hikes mean customers of the Northern Regional Electricity Distributor (Nored) are expected to pay more. This is after ECB approved a 9.8% hike for Nored, the highest so far in the country. Nored supplies electricity to an estimated 90 000 customers in eight northern regions.
NamPower Distribution received the second highest increase with 9.2%. Central Northern Regional Electricity Distributor (Cenored), which received an approved increase of 7.6%, covers the Otjozondjupa, part of Oshikoto and Omaheke and Kunene regions, and has a customer base of approximately 34 000 customers in its main supply area (plus some 3 300 in the Omaheke region and some 6 400 in Okahandja.
Commenting on the already approved increases, Vakarara Kauanivi from Gobabis in the Omaheke region, voiced his concern, saying buying electricity for N$100 “is as good as buying an egg from a vendor these days”. He emphasised that the number of units a customer receives is “just a joke”.
“Basic needs are the most vital components of human survival. One of the basic needs is proper sanitation and that includes a home that has water and electricity. What purpose does electricity serve if it is meant for a few that have access? We see this as exploitation in the 21st century,” the concerned resident bemoaned.
Moreover, Okahandja received 7.3%, and Omaheke Regional Council 3.3%.
ErongoRED received an increase of 9%, which is the third highest approved increase.
Meanwhile, Kahimise stated that annual electricity tariff reviews are conducted to ensure utilities charge appropriate tariffs to collect enough revenue to cover costs and provide reliable and efficient services at affordable cost-effective rates. In addition, the reviews are conducted to ensure electricity consumers pay the appropriate tariffs for electricity supplied.
However, the CEO noted with concern that all distribution utilities were supposed to apply for annual tariff reviews before the end of May 2023.
“Utilities that do not apply for tariff adjustments in time to coincide with the implementation of the bulk tariffs, which is effective 1 July 2023, will lose revenue because they will be selling electricity based on outdated tariffs while purchasing on new tariffs, especially pre-paid revenue that is collected through pre-paid sales,” warned Kahimise.
The six distributors mentioned above were the only entities that acted upon the request. Some of the distributors who handed in their applications late include the City of Windhoek (who requested 14%), Kalkrand Village Council (25%), Keetmanshoop Municipality (8%), Mariental Municipality (9.9%), Osire Power (12.3%), Oshakati Premier Electric (10%) and RoshSkor Township (11%). The review for these distributors is ongoing and is scheduled to be finalised tomorrow.
In addition, a bothered Kahimise noted that about 37 licensees are yet to submit adjustment applications. The CEO said “the dragging of feet” is negatively affecting the business of electricity in the country.