City raked in N$8m because of wrong rates

THE Windhoek municipality has pocketed additional income of N$8 million since July 2006 through overcharging residents on the basis of unauthorised electricity tariffs.

The tariff ‘adjustment’ landed the local authority in trouble with the Electricity Control Board (ECB) and the Ministry of Mines and Energy. Although City officials have denied any wrongdoing or mistakes while computing the new tariffs, a “mutually acceptable solution had been found for the tariff dispute”, according to a joint statement issued by the ECB and the Windhoek municipality yesterday.It involves a lower electricity tariff for the municipality’s 2007-08 financial year, which runs from July 2007 to June 2008.From July 1 2006, the City of Windhoek charged residents and businesses 14,7 per cent instead of 10,2 per cent.An additional ECB levy of N$0,0050 charged by the City has also been criticised by the ECB – it should only be N$0,0045.The matter was taken to Erkki Nghimtina, the Minister of Mines and Energy, who admitted in Parliament that the City of Windhoek had taken more money out of consumers’ pockets for electricity than the ECB had authorised.According to a ministerial source, Government had even been prepared to take the municipality to court on the issue.”The ECB has the right to take any entity (which is licensed to sell electricity) to court, should they deviate from ECB approved tariffs” the source told The Namibian.In terms of the deal reached between the municipality and the ECB, Windhoek residents will not receive cash back for having paid too much, but will enjoy a lower tariff for the remainder of this financial year, which ends in five months.However, on enquiry to obtain more details on the issue, the ECB said it was surprised the “joint statement” had been released to the media.”It was composed without ECB input and it was not supposed to have been released now,” the secretary of Dr Siseho Simasiku, Chief Executive of the ECB told The Namibian yesterday.Efforts to reach the strategic executive of the corporate communications department of the Windhoek municipality proved fruitless as he was “locked up in meetings all day”.Although City officials have denied any wrongdoing or mistakes while computing the new tariffs, a “mutually acceptable solution had been found for the tariff dispute”, according to a joint statement issued by the ECB and the Windhoek municipality yesterday.It involves a lower electricity tariff for the municipality’s 2007-08 financial year, which runs from July 2007 to June 2008.From July 1 2006, the City of Windhoek charged residents and businesses 14,7 per cent instead of 10,2 per cent.An additional ECB levy of N$0,0050 charged by the City has also been criticised by the ECB – it should only be N$0,0045.The matter was taken to Erkki Nghimtina, the Minister of Mines and Energy, who admitted in Parliament that the City of Windhoek had taken more money out of consumers’ pockets for electricity than the ECB had authorised.According to a ministerial source, Government had even been prepared to take the municipality to court on the issue.”The ECB has the right to take any entity (which is licensed to sell electricity) to court, should they deviate from ECB approved tariffs” the source told The Namibian. In terms of the deal reached between the municipality and the ECB, Windhoek residents will not receive cash back for having paid too much, but will enjoy a lower tariff for the remainder of this financial year, which ends in five months.However, on enquiry to obtain more details on the issue, the ECB said it was surprised the “joint statement” had been released to the media.”It was composed without ECB input and it was not supposed to have been released now,” the secretary of Dr Siseho Simasiku, Chief Executive of the ECB told The Namibian yesterday.Efforts to reach the strategic executive of the corporate communications department of the Windhoek municipality proved fruitless as he was “locked up in meetings all day”.