By: Dwight Links
The Electricity Control Board (ECB) and industry stakeholders recently held the second workshop on the review of Tariff Methodology, Net Metering and Economic Rules in Windhoek.
Various chapters of these sections were placed under scrutiny, taking into consideration the power generation, transmission and distribution of the Namibian electricity supply sector.
ECB CEO Robert Kahimise indicated that the main reason for this exercise was to update the regulatory framework in Namibia.
“The Tariff Methodology – which is largely unchanged for nearly 20 years – requires modernisation to drive efficiency. We must move towards a structured, transparent, and performance-based system including multi-year pricing to incentivise real operational improvements, ensure vital network investment, and manage costs effectively within our evolving market structure,” expanded Kahimise.
Another important factor tabled during the engagement was the impact on consumers at both household and industrial levels, with stakeholders discussing how sections on debt recovery measures could be improved.
Presenting on this matter under Economic Rules, a legal consultant indicated that as the legislation on the electricity supply industry has been lagging behind the country’s developments over the past five years, a balance would have to be struck.
Kahimise added to this by noting that “The Economic Rules aim to establish the overarching framework for a competitive, efficient, and sustainable electricity industry. They seek to balance cost-reflective tariffs that ensure licensee viability with the imperative of affordability and consumer protection.”
Direct Impacts
Raising questions on parts of the Economic Rules presentation, local authorities sought clarity from the electricity regulator on the real-world impacts they would experience.
“The Electricity Act (Section 36) establishes a regulatory framework that takes precedence over local authority legislation in electricity matters, ensuring consistent national regulation while preserving local authorities’ role as electricity service providers,” responded Kahimise.
The ECB also indicated that the relationship between electricity regulation and local authorities is governed by the Electricity Act 4 of 2007 which indicates a clear hierarchy of legal instruments.
This translates to an ecosystem between the local authorities and the ECB where: the former would have to obtain electricity licences in accordance with Electricity Act, comply with all ECB rules, codes standards and directives, apply for electricity tariff adjustments in accordance with the act, announce amended charges in at least one newspaper in their locality, and display charges in the manner prescribed by the ECB rules or codes (Section 35).
Speaking on whether any affordability surveys or studies had been considered for the legislative review in progress, the ECB noted that an economic impact assessment is conducted on an annual basis.
“These analyses provide a high level assessment of electricity affordability. In addition, the ECB undertakes regional stakeholder consultations at the end-consumer level to engage and educate consumers on the tariff adjustment process,” the parastatal explained. The ECB added that these consultations also include factors driving electricity price increases and affordability challenges.
Punishment Instruments
The ECB noted that the Electricity Act of 2007 includes provision for criminal sanctions to ensure compliance with regulatory requirements and to protect public safety.
“This is all to ensure compliance with the act, to ensure safety and prevent public hazardous circumstances to public health and safety, enforcement of licence conditions that include regulatory standards, and the protection of integrity of the electricity supply system,” stated Kahimise.
As the engagement listed the punishment of non-compliance as a core mandate, the ECB noted that it “continuously has to develop and review its regulatory tools to ensure the industry operates efficiently. Validation workshops form part of the broader stakeholder consultation process.”
During the first phase workshop of 2025, the ECB presented the gaps and needs analysis, literature review, and international benchmarking. With this second review, the parastatal aims to modernise set frameworks for future conduct.
