ECB approves 13% power hike for NamPower




The Electricity Control Board (ECB) has approved an electricity tariff

hike for NamPower to bulk suppliers by 13.22% with effect from July

1.

The increase is in line with Government’s bid to see the national

power utility charging cost reflective tariffs until the country is able

to sustain its market needs.

ECB is also expected to deliberate on the eventual increase to the

consumers when the bulk suppliers (municipalities and regional

distributors) apply for their annual increases from the electricity

regulator.

Speaking at a media briefing ECB Acting at ECB this morning ECB

Acting Chief Executive Officer, Rojas Manyame said the bulk

suppliers will soon make their propositions to the regulator for

increase spreads to the consumer.

“NamPower made an application to the ECB in terms of section

27 of the Electricity Act (Act 4 of 2007). In its request NamPower

requested for an effective bulk tariff increase of 21.29%, an increase

from N$1.03 to N$1.25 per Kilowatt hour, to meet its service delivery

costs and for the tariff to remain cost reflective. After a thorough

review process, the ECB board awarded a 13.22% effective bulk tariff

increase to N$1.17 PER KwH.

Namibia currently imports between 50% to 70% of its power needs

from other sister utilities in the Southern African Development

Community (Sadc) including Zimbabwe Electricity Supply Authority

(Zesa) and Eskom from South Africa.

Manyame also revealed that ECB and Government will this month

conclude a Supply Tariff Mechanism, (STM) that aims to cushion poor

Namibians from paying heavy tariffs.

Manyame explained that upon endorsement the STM will see a

certain quarter in society that consumes a certain level of electricity

paying lower tariffs. The mechanism, Manyame added that will see

those in the high tariff bracket subsidising those in the lower tariff

bracket.

“We did research and found out that it will be difficult to base the

pricing on income but rather on how much individuals consume in

terms of electricity.