Electricity tariffs to be increased
From July mass electricity supply will be more expensive
For city administrations, mining companies and other bulk customers, electricity will be almost 9% more expensive from 1 July.The Electricity Control Board (ECB) approved NamPower's request for an increase, but only for 8.97% instead of the requested 16.87% increase. At the latter increase, the electricity price would have stood at over N$2 – or N$2.1296 per kilowatt hour – instead of the previous N$1.8222 per KWh.
"With an increase of 8.97%, a kilowatt hour will cost N$1,9856 from July," said the new ECB chief executive, Robert Kahimise, calculated tariffs for end users and in turn apply for these rates to the ECB.
Kahimise stressed that the new electricity tariff would be buffered by a N$200 million subsidy through a fee that has been included in the general electricity tariff for several years. For 2023-24, however, this fee will not be charged.
"We are aware that the new electricity tariff will burden consumers and the economy and contribute to inflation," Kahimise said. Future tariff increases would be adjusted for inflation and take into account new energy sources. "External factors such as weather conditions, exchange rates and other unpredictable circumstances can affect electricity prices."
Namibia is safe from targeted power cuts in the next 12 months. The Ministry of Mines and Energy has formed a technical committee to ensure the electricity supply.
When asked how the ECB viewed NamPower's announcement that it would collect around N$1 billion from defaulting customers by the end of May, otherwise their electricity would be cut off, Kahimise responded by pointing out that NamPower had long since communicated with the affected customers should have negotiated to collect this debt.