City has been overcharging residents by 7 per cent

THE Windhoek Municipality has overcharged virtually every electricity consumer in the capital by seven per cent since July 1, when new tariffs were introduced, allegedly without the approval of the Electricity Control Board.

The ECB approved a 10,2 per cent tariff increase in June, but it appears that the City has charged 17,2 per cent for the past 10 weeks. The increases accepted by the ECB should have been gazetted accordingly, but the City published higher tariffs than approved in Government Gazette No 3661 on July 15 2006, including the ECB levy itself, which was gazetted at N$0,0050, but which should only be N$0,0045.The only customers who have not been overcharged are those with pre-paid electricity meters.The ECB confirmed the higher charges to The Namibian on Monday.According to Jacky Scholz, legal advisor at the regulator, it approved an average electricity increase of 10,2 per cent.”Since publishing their tariffs in the Government Gazette, the City of Windhoek has charged their customers seven per cent more than the ECB approved schedule of tariffs,” Scholz said.”In so far as the City charged tariffs not in accordance with the schedule of approved tariffs, the ECB intends to enter discussions with the City as to how customers should be compensated in the event of overcharging,” Scholz added.”We will inform the public of what has been decided on,” Scholz told The Namibian telephonically.In a later statement, the ECB assured the public of its commitment “to ensure that customers are charged reasonable tariffs for their electricity and that the electricity legislation is being complied with”.The Windhoek municipality is charging private houses and flats with 10-ampere circuit breakers 35,08 cents (N$0.3508) per unit per kilowatt-hour, plus one cent for the future Regional Electricity Distributor (RED), which has not even been established yet.The ECB levy is calculated at N$0,0050, although it should only be N$0,0045.In total, private residents are charged a unit price of 36,58 cents (N$0,3658).The ECB only approved a unit price of 34,05 cents (N$0,3405) plus an ECB levy of N$0,0045, which should bring the new unit charge to only 34,5 cents or N$0,3450.Liz Sibindi, the municipality’s Public Relations Officer, said an official response would be issued within the next two days.”The mayor, the chief executive officer and the communications manager are attending the AfriCities Summit in Nairobi ,” Sibindi told The Namibian.DTA City Councillor Nico Smit said the issue cast the Windhoek municipality in a bad light.”Council approved the tariffs relying on the recommendations of the experts employed at the municipality,” Smit told this newspaper.Another sector which cried foul was the Namibia Manufacturers’ Association (NMA).”We had a consultant conduct a study on the tariffs charged by the City for manufacturing companies,” its president Hennie Fourie told The Namibian.”The ECB approved a rate for normal manufacturers in Windhoek at 34,05 c per unit plus the N$0,0045 ECB levy, which totals 34,5 c per unit.The Municipality at present charges 37,5 c per unit plus 0,05c ECB levy which totals 38 c per unit, an overcharge of 3,5 c per unit,” Fourie said.An electricity price comparison was compiled last year at the request of the NMA.It indicated that manufacturers pay 60 to 70 per cent more for electricity in Namibian cities and towns than their South African counterparts.The NMA took the matter to the ECB last year and the regulator negotiated a smaller electricity tariff increase for manufacturers for July 2005 and again a smaller unit charge for July 2006.”This has not happened,” Fourie said.The increases accepted by the ECB should have been gazetted accordingly, but the City published higher tariffs than approved in Government Gazette No 3661 on July 15 2006, including the ECB levy itself, which was gazetted at N$0,0050, but which should only be N$0,0045.The only customers who have not been overcharged are those with pre-paid electricity meters.The ECB confirmed the higher charges to The Namibian on Monday.According to Jacky Scholz, legal advisor at the regulator, it approved an average electricity increase of 10,2 per cent.”Since publishing their tariffs in the Government Gazette, the City of Windhoek has charged their customers seven per cent more than the ECB approved schedule of tariffs,” Scholz said.”In so far as the City charged tariffs not in accordance with the schedule of approved tariffs, the ECB intends to enter discussions with the City as to how customers should be compensated in the event of overcharging,” Scholz added.”We will inform the public of what has been decided on,” Scholz told The Namibian telephonically.In a later statement, the ECB assured the public of its commitment “to ensure that customers are charged reasonable tariffs for their electricity and that the electricity legislation is being complied with”. The Windhoek municipality is charging private houses and flats with 10-ampere circuit breakers 35,08 cents (N$0.3508) per unit per kilowatt-hour, plus one cent for the future Regional Electricity Distributor (RED), which has not even been established yet.The ECB levy is calculated at N$0,0050, although it should only be N$0,0045.In total, private residents are charged a unit price of 36,58 cents (N$0,3658).The ECB only approved a unit price of 34,05 cents (N$0,3405) plus an ECB levy of N$0,0045, which should bring the new unit charge to only 34,5 cents or N$0,3450.Liz Sibindi, the municipality’s Public Relations Officer, said an official response would be issued within the next two days.”The mayor, the chief executive officer and the communications manager are attending the AfriCities Summit in Nairobi ,” Sibindi told The Namibian. DTA City Councillor Nico Smit said the issue cast the Windhoek municipality in a bad light.”Council approved the tariffs relying on the recommendations of the experts employed at the municipality,” Smit told this newspaper. Another sector which cried foul was the Namibia Manufacturers’ Association (NMA).”We had a consultant conduct a study on the tariffs charged by the City for manufacturing companies,” its president Hennie Fourie told The Namibian.”The ECB approved a rate for normal manufacturers in Windhoek at 34,05 c per unit plus the N$0,0045 ECB levy, which totals 34,5 c per unit.The Municipality at present charges 37,5 c per unit plus 0,05c ECB levy which totals 38 c per unit, an overcharge of 3,5 c per unit,” Fourie said.An electricity price comparison was compiled last year at the request of the NMA.It indicated that manufacturers pay 60 to 70 per cent more for electricity in Namibian cities and towns than their South African counterparts.The NMA took the matter to the ECB last year and the regulator negotiated a smaller electricity tariff increase for manufacturers for July 2005 and again a smaller unit charge for July 2006.”This has not happened,” Fourie said.