City HAS got it WRONG on power charges, says ECB

THE City of Windhoek was definitely at fault for charging residents and businesses more for electricity than was approved by the Electricity Control Board (ECB), the regulator said yesterday.

The Board was reacting to denials by the municipality. “The fact remains that the City is charging tariffs not approved by us,” the Chief Executive Officer of the ECB, Dr Siseho Simasiku, said at a specially convened media conference.”Local authorities run serious risks if they operate outside the legislations for electricity and local authorities,” Simasiku said.”Electricity suppliers must be licensed and their tariffs approved by the ECB.This includes the City of Windhoek, which is an electricity supplier with a licence from the ECB and it thus falls under the regulations of the regulator.”We want the electricity supply to continue against payment of ECB approved tariffs.”The City’s claim that it increased electricity tariffs by only eight per cent was “not correct”, the ECB boss added.The City applied for an effective tariff increase of 14,7 per cent, but the ECB only authorised 10,2 per cent.However, contrary to that approval, the City raised its effective tariffs by 14,7 per cent, which was 11,9 per cent higher and not eight per cent higher than last year, contrary to the advertisements published by the City of Windhoek this week, according to Simasiku.”We held consultations with the Attorney General and Justice Minister Pendukeni Ivula-Ithana on Wednesday together with the Ministry of Mines and Energy to discuss the matter.We will take it further by meeting with the Windhoek City Councillors either by Friday or early next week,” Simasiku added.”Representatives from the Ministry of Regional and Local Government will also attend.”The ECB wanted the matter resolved in a responsible way so that the interests of the parties involved were protected and laws complied with, he said.The ECB boss confirmed what The Namibian reported on Wednesday, namely the charging of an unauthorised levy of one cent per kilowatt-hour, allegedly for the not yet established Regional Electricity Distributor (RED).The City said it originally used the levy to “ringfence its electricity services.””The ringfencing has been completed and we see no reason why this exorbitant amount – about N$6 million annually) should continue to be imposed on electricity consumers,” Simasiku criticised.”The other REDs did not do it, why should the City of Windhoek do it? This is unfair to the consumer,” he added.Similarly, the ECB levy of half a cent (0.50 cent) which the City has increased since July 2006 was also unauthorised.”The levy approved by the ECB is only 0,45 cent per kilowatt-hour, they have to correct it,” Simasiku said.The ECB has no legal leverage to actually sue the City of Windhoek, although its unauthorised tariff increases are against the law.”However, it is in the hands of residents, if they want to sue the Windhoek municipality,” Simasiku said.He requested Windhoek residents to remain calm.”We will solve this matter in the best possible way,” he told reporters.”The fact remains that the City is charging tariffs not approved by us,” the Chief Executive Officer of the ECB, Dr Siseho Simasiku, said at a specially convened media conference.”Local authorities run serious risks if they operate outside the legislations for electricity and local authorities,” Simasiku said.”Electricity suppliers must be licensed and their tariffs approved by the ECB.This includes the City of Windhoek, which is an electricity supplier with a licence from the ECB and it thus falls under the regulations of the regulator.”We want the electricity supply to continue against payment of ECB approved tariffs.”The City’s claim that it increased electricity tariffs by only eight per cent was “not correct”, the ECB boss added.The City applied for an effective tariff increase of 14,7 per cent, but the ECB only authorised 10,2 per cent.However, contrary to that approval, the City raised its effective tariffs by 14,7 per cent, which was 11,9 per cent higher and not eight per cent higher than last year, contrary to the advertisements published by the City of Windhoek this week, according to Simasiku.”We held consultations with the Attorney General and Justice Minister Pendukeni Ivula-Ithana on Wednesday together with the Ministry of Mines and Energy to discuss the matter.We will take it further by meeting with the Windhoek City Councillors either by Friday or early next week,” Simasiku added.”Representatives from the Ministry of Regional and Local Government will also attend.”The ECB wanted the matter resolved in a responsible way so that the interests of the parties involved were protected and laws complied with, he said.The ECB boss confirmed what The Namibian reported on Wednesday, namely the charging of an unauthorised levy of one cent per kilowatt-hour, allegedly for the not yet established Regional Electricity Distributor (RED).The City said it originally used the levy to “ringfence its electricity services.””The ringfencing has been completed and we see no reason why this exorbitant amount – about N$6 million annually) should continue to be imposed on electricity consumers,” Simasiku criticised.”The other REDs did not do it, why should the City of Windhoek do it? This is unfair to the consumer,” he added.Similarly, the ECB levy of half a cent (0.50 cent) which the City has increased since July 2006 was also unauthorised.”The levy approved by the ECB is only 0,45 cent per kilowatt-hour, they have to correct it,” Simasiku said.The ECB has no legal leverage to actually sue the City of Windhoek, although its unauthorised tariff increases are against the law.”However, it is in the hands of residents, if they want to sue the Windhoek municipality,” Simasiku said.He requested Windhoek residents to remain calm.”We will solve this matter in the best possible way,” he told reporters.