The Electricity Control Board (ECB) has approved a 3.8% tariff hike for the Namibia Power Corporation (NamPower).
This increases the cost of electricity from N$1.98 per kWh to N$ 2.06 per kWh for the 2025/26 financial year.
NamPower has submitted a tariff application for an increase of 17.44% for both generation and transmission tariffs.
“After due consideration, especially of the impact on the affordability of electricity, and in accordance with the ECB tariff review methodology, the ECB board resolved to approve a 3.8% increase for NamPower instead of the 17.44%,” ECB chief executive Robert Kahimise says.
He says the tariff increase is below inflation, therefore having a minimal impact on inflation and the price of goods and services.
Inflation stood at 4.2% at the end of March.
“However, it will slightly negatively impact gross domestic product growth as electricity cost is a component of the inflation calculation,” Kahimise says.
