WALVIS BAY - Residents in the Erongo region will have to pay more for electricity, as Erongo Red, the electricity distributor, announced an increase of 8.97% in electricity prices. The increase was deemed necessary after the Electricity Control Board (ECB) announced that NamPower’s average tariff would rise from N$1.82 to N$2.12 per kilowatt hour for the 2023/2024 financial year. 

Nico Niemand, the acting CEO, stated that the increase took effect on 1 July.

“The impact of the increase on customers will vary depending on their individual consumption patterns and the type of connection,” explained Niemand during a press conference last Thursday. “It is important to note that approximately 70% of every unit sold goes to NamPower, while Erongo Red utilises the remaining 30% for its operations.”

Niemand further stated that the ECB levy will remain unchanged from 1 July 2023, to 30 June 2024, for a period of 12 months. Likewise, there is no indication of an increase in the NEF levy for the same financial year, as confirmed by the mines and energy ministry.

According to Niemand, this increase is not exclusive to the Erongo region but will be applied nationwide.

“In addition to the bulk tariff increase by the national utility, there are various other factors, such as operations and maintenance costs, customer service, overheads, and working capital, that impact the overall cost of delivering electricity to end users. Hence, we had to explore all possible avenues to minimise the impact on our customers while ensuring that service delivery remains uncompromised. Therefore, we will continue to provide subsidised tariffs for pensioners and low-income members of our community,” Niemand said.

He appealed to pensioners in Erongo to re-register to ensure that they continue benefiting from the subsidised tariffs. He also encouraged those eligible for social tariffs to visit the nearest offices of Erongo Red and apply.

-edeklerk@nepc.com.na