Grid connection code in the works
ECB intends to transform connection charge policy into law
Industry consultations and workshops continue to create the new national connection charge code.
The Electricity Control Board (ECB) is currently in the process of formalising the national connection charge policy. Once the new national connection charge code is finalised, it will become subsidiary legislation under the new electricity bill, thereby transforming the government's policy intentions into enforceable regulations applicable to all new connections to the national power grid.
The first workshop in a series on this matter took place yesterday at Arebbusch Travel Lodge in the capital.
During the event, a speech prepared by ECB chief executive officer Robert Kahimise was delivered by Pinehas Mutota, the board's general manager for economic regulation.
Mutota emphasised that the code will play a crucial role in Namibia's power sector, ensuring customer protection while enabling licensees to cover their costs fairly and maintain the economic viability of this vital sector.
Fair costs
"The national connection charge code is designed to standardise and streamline the process of charging for new connections to our electricity grid. This initiative aims to enhance transparency, fairness and efficiency, benefiting all stakeholders — from consumers to utilities and government agencies — through a well-structured and predictable framework," he stated.
"Regulating fair connection costs to our electricity infrastructure is essential for facilitating timely and financially sustainable integration of new generation and consumption. Unclear costing methodologies can lead to unjustifiable costs for different stakeholders, while some may benefit from the network without contributing adequately," he added.
He explained that balancing interests is crucial as the sector opens up to new participants and supports the transition to renewable energy generation.
"Together, we can build a stronger and more dynamic energy market," he affirmed.
Review
The review of the existing policy, in place since 2014, has been ongoing since April. According to Tonateni Amakutuwa, senior financial and market analyst at the board, Ricardo Renewable Energy has been appointed as the consultant leading this project.
Amakutuwa noted that the process of drafting the code is expected to conclude by November this year.
Consultant Uli Von Seydlitz mentioned that they have already conducted 13 meetings with key market players, including NamPower, Erongo Red, Cenored and Nored, as well as local authorities such as the Rehoboth Municipality and the Municipality of Lüderitz.
Ricardo has also conducted an international review, benchmarking against best practices from South Africa, Uganda, Zambia, Great Britain and Spain.
Changes likely to be implemented compared to the current policy include standardising methods for all new connections instead of singling out specific schemes for farmers. Concerns such as capital cost refunds are also being addressed during this process, impacting individual customers investing in electricity infrastructure and latecomers wishing to utilise existing customer-funded infrastructure.
Clarification
Von Seydlitz clarified that terms like "near" and "far," "small" and "large" connections, as well as "shallow," "sub-deep," and "deep" connections used in the policy, will be better defined or replaced with clearer criteria while maintaining flexibility.
"Namibian networks vary greatly, and a one-size-fits-all approach could be risky," he cautioned. However, "once the code is established, compliance will be required, respecting the flexibility within the code," he assured.
Questions raised during the workshop included NamPower's inquiry regarding the current differentiation between coastal and inland infrastructure and Nored's query about who decides when infrastructure upkeep can be pooled.
Von Seydlitz clarified that licensees currently make these decisions based on their ability to reimburse customer investments. If infrastructure is not pooled, new customers must contribute to refunds.
Further clarification on these and other issues identified during consultations will be included in the first draft of the new code, expected to be submitted to the ECB by the end of this month, he concluded.