22.02.2013

Rivalling The Power Distribution (REDS) Sector

COMPETITION is needed and important, not only to maintain the industry but mostly to aid in stabilising costs and hence the affordability and reliability of services and products of a particular sector, electricity included. Distributors like Ceno-RED, Erongo-RED and No-RED are no doubt anti-enterprise, due to their monopolistic trading fashion.

There seems to be no control of the regional electricity distribution [RED] companies, apart from the fact that they are paying their dues to the ECB [Electricity Control Board] and town councils. Subsequently, the electricity prices of REDs are surging out of affordability and sustainability range. This sector is crucial to the the socio-economic expansion but is no special to national rules and regulations of equity competition. Like other sectors, electricity distribution should be subjected to public bidding and contracting. In this manner, not only will it ensure transparency and competitiveness, but will make electricity prices affordable, induce economic development, and eliminate the current unjust status-quo of the REDs. The competition commission and other overseers have an assignment due in this regard!
K Shuukwanyama
Via email