The Electricity Control Board (ECB) of Namibia recorded an increase in total revenue of 3.6% from N$86.3 million from the previous financial year to N$89.4 million for the 2018/2019 financial year. ECB’s main source of revenue is derived from levies which accounted for N$83.1 million in the total revenue figure while the remaining N$6.3 million was generated from licence fees, interest, and other income.
Electricity units in MWh produced N$3.8 million, which is actually a decrease from the 2017/18 financial year when N$4.3 million was generated. This was detailed in ECB’s 2018/19 financial year report, which was tabled in parliament on Tuesday this week.
The ECB is funded through the ECB levy, which is approved by the minister of mines and energy and then raised on the sale of electricity units. The levy received was based on actual volumes of electricity supplied by NamPower and by licensed embedded or isolated generators. The ECB levy increased by 6.7% effective 1 July 2018, whereas the actual volumes of electricity supplied decreased by 12% compared to the previous financial year.
The combined factors of the decrease in volume and the increase in levy resulted in a 4% increase in levy income for the period under review. The decrease in volume was mainly attributable to the increasing renewable energy generation from which no levy income is derived, for example, rooftops and net metering systems.
Other income for the previous financial year included rental income. The ECB office building which was acquired at the end of the 2017 financial year had an existing rental agreement that subsequently ceased on 31 August 2017, hence the decrease in other income for the period under review.
Licence fee and other income in revenue composition recorded 0% for the year, while interest income recorded 7% while levy income kicked off with 93%.
In the ECB’s Chairman’s Report, Gottlieb Hinda said he was humbled to present the report on behalf of ECB under the theme “Levelling the playing field in the electricity sector.”
“For the ECB this means ensuring competition in the market, fair and equitable treatment of all players in the value chain, protection of both consumers and investors, quality service, affordable prices and opportunities for economic development,” said Hinda.
Meanwhile, in the CEO’s report, Foibe Namene, said: “Revenue projections were met during the year, although a steady decline is noticeable in the number of units sold due to own solar generation by many customers. The ECB managed to spend 80% of its budget for the year.”
She added that a cause for concern was underspending on project budgets, which was the result of a variety of factors such as delayed projects, and projects not commencing as they were dependent on the finalisation of other projects. Meanwhile, she noted that ECB management has been tasked to improve its budgeting processes and to improve coordination between departments where projects are interdependent.
She said that ECB is developing a Funding Mechanism and Expenditure Framework, as well as Fraud Prevention Plan to strengthen its financial performance.
2020-02-14 08:33:51 | 3 months ago