Consumers have to brace for more hikes after the Electricity Control Board (ECB) approved tariff increases for 12 distribution utilities in the country, including the City of Windhoek, which had submitted applications for increases on time.
The utilities applied for different tariff increases ranging from the highest of 28% by the Maltahöhe Village Council, to the lowest rate of 3,5% by the Omaheke Regional Council.
Windhoek applied for a 14% increase, but was awarded 8,6%.
According to a statement issued by ECB chief executive Robert Kahimise yesterday, the ECB announced an 8,97% rate increase for NamPower’s bulk electricity tariff which were effective from 1 July.
The board then advised distribution utilities to apply for tariff increases timeously to avoid losing revenue through purchasing power from NamPower at new rates, but selling to consumers at the old rate.
Following the ECB’s warning, a number of utilities submitted applications for new rates, which were granted – albeit lower than the requested tariffs.
Windhoek was awarded an increase of 8,6%, Finkenstein Development Trust 8%, Hardap Reginal Council 9,6%, Keetmanshoop Municipality 7,9%, Lüderitz Town Council 4,7%, Mariental Municipality 9,9%, Maltahöhe 10%, Nored 9,8%, the Omaheke Regional Council 3,3%, Oshakati Premier Electric 9,9%, Osire Power CC 9,6%, and RoshSkor Township 9,5%.
“Please note that the tariff increases requested by the licencees differ due to the different cost structures per licence,” says Kahimise, adding that the new tariffs are effective on different dates ranging from 1 July to 1 August for postpaid electricity, and from 13 July to 1 September for prepaid electricity.
Kahimise said Aranos Town council, Gobabis Municipality, Kalkrand Village Council, Koës Village Council and Rehoboth Town Council had submitted applications after the end of July, and tariff reviews are underway and should be finalised by the end of September.
According to Kahimise, //Kharas Regional Council, Aroab Village Council, Berseba Village Council, Bethanie Village Council, Gibeon Village Council, Gochas Village Council, Karasburg Town Council, Leonardville Village Council, Tses Village Council and Witvlei Village Council have not applied for tariff increases yet.
Kahimise says the board has recommended the approval of applications for power generation by Anirep Solar by Dundee Precious Metals, Inceptus Energy by University of Namibia main campus, and Paratus Telecom for their own use to the minister of mines and energy.
The ECB also recommended that Solnam be allowed to increase generation capacity.
SCA Trading applied for a trading and export licence.
“The board also recommended that the minister approves that Cenored supplies Okahandja for a 12-month period.”
On the implementation of the modified single buyer market model, Kahimise says 20 of the 26 eligible contestable customers are already registered, with three having applied for registration which will be finalised by the end of September.
The modified single buyer market model allows registered contestable customers and licensed eligible sellers to transact directly for the supply of electricity of up to 30% of the customer’s energy requirements.