Central Northern Regional Electricity Distributors (CENORED) revenue increased by 8.9% from N$ 496 million in 2016 to N$540 million in 2017.
The Pre-paid electricity sales represent 22% of the total electricity sales and the rest of the revenue are from the conventional business customers.
The total finance charges for the period was N$ 14.7 million.
The increase in finance charges is due to new loans that were obtained during the financial year that ended. The total loans for the year ended 30 June 2017 were N$ 199 536 906, the company’s annual report indicates.
“The Company has experience a decrease in the profit of 45% for the year from N$ 43 754 million in 2016 to N$23 545 million in 2017. The decrease is attributed to a high tariff increase in electricity bulk supply from Nampower of 16.71% against an increase of 8.9% in tariff for CENORED customers as well as the slowdown in the economic activities in the country. The mis-match in the tariff increase had a huge effect in the profitability of the organisation,” the report states.
The chief executive officer of CENORED, Mburumba Appolus, says that another critical area of management’s strategic focus in the year under review has been the question of security of electricity supply.
“This is especially poignant given that Namibia at the moment imports up to 80% of its electricity requirements from generators located as far as Mozambique and the Democratic Republic of the Congo. All this while Namibia is endowed with some of the best conditions for solar photovoltaic (PV) generation in the world and the global prices solar PV panels are falling rapidly. CENORED became the first electricity distributor in the country to sign a power purchase agreement (PPA) with an Independent Power producer (IPP), for the HopSol 5MW solar PV plant in Otjiwarongo,” he says.
The company has issued request for tenders to Independent Power Producers for a further 15MW of additional solar PV for the towns Tsumeb (5MW); Grootfontein-Otavi (6.5MW) and Outjo- Khorixas (3.5MW).