Electricity rip-off continues

THE City of Windhoek has still not adjusted its electricity tariffs since it started overcharging residents and businesses in July 2006.

The Electricity Control Board (ECB), which has to approve the tariffs each year, sanctioned a 10,2 per cent increase but the City of Windhoek increased tariffs by 14,3 per cent. This applies to all households and businesses which are invoiced every month, but not to pre-paid customers.In November, the Ministry of Mines and Energy told the City of Windhoek to revise the unapproved electricity tariffs and adjust them accordingly to the approved 10,2 per cent increase, and to submit the revision to the ECB again.This has not happened, according to the ECB.”We received a letter from the Windhoek municipality last month informing us they were busy revising the tariffs,” said Jacky Scholz, Legal Advisor of the ECB.”We are still waiting, because the ECB must again give its approval and they must be published in the Government Gazette.”The City was allegedly waiting for “instructions” from the Ministry, a source within the City Council told The Namibian.When approached for comment yesterday, Ndangi Katoma, the Strategic Executive for Corporate Communications at the City, said he was still on leave.The City’s Public Relations Officer, Liz Sibindi, requested all questions in writing, which was duly done.However, a reply from the municipality could only be provided after two days, she said.”We have set up a database for all queries including those from the media,” Sibindi told The Namibian yesterday, “they must all be submitted in writing and standard procedure is that replies will be given in two days.”In September last year, the Municipality denied that it had overcharged consumers.”Though the 10,2 per cent was approved, the City only introduced an average of eight per cent,” it maintained in a press statement then.Also in November, Mines and Energy Minister Erkki Nghimtina called on the Windhoek Municipality to hold consultative meetings with the ECB to “amend the City’s current unapproved schedule of tariffs with a view to rectifying all the errors as well as to iron out any discrepancies that might have occurred and that the eventual tariffs would fall within the ambit of the increase approved by the ECB Board”.”In so far as the former is higher than the increase approved by the Board, such amount will be offset against future tariff increases to the benefit of the City of Windhoek customers,” Minister Nghimtina demanded.Six months of overcharging has negatively affected local manufacturers.”It has a serious impact on our operating costs and will affect our profitability,” Harry Erasmus, Managing Director of Plastic Packaging, told The Namibian yesterday.”We use a lot of electricity as we manufacture plastic bags and packaging materials.Manufacturers in Windhoek are already at a disadvantage because we pay about 40 per cent higher electricity tariffs than competitors in South Africa,” Erasmus added.The Windhoek municipality did, however, this month rectify the monthly levy which goes to the ECB.The approved levy increase was N$00,45 but the City increased it to N$00,50.It has now been decreased to the correct percentage of N$00,45.This applies to all households and businesses which are invoiced every month, but not to pre-paid customers.In November, the Ministry of Mines and Energy told the City of Windhoek to revise the unapproved electricity tariffs and adjust them accordingly to the approved 10,2 per cent increase, and to submit the revision to the ECB again.This has not happened, according to the ECB.”We received a letter from the Windhoek municipality last month informing us they were busy revising the tariffs,” said Jacky Scholz, Legal Advisor of the ECB. “We are still waiting, because the ECB must again give its approval and they must be published in the Government Gazette.”The City was allegedly waiting for “instructions” from the Ministry, a source within the City Council told The Namibian.When approached for comment yesterday, Ndangi Katoma, the Strategic Executive for Corporate Communications at the City, said he was still on leave.The City’s Public Relations Officer, Liz Sibindi, requested all questions in writing, which was duly done.However, a reply from the municipality could only be provided after two days, she said.”We have set up a database for all queries including those from the media,” Sibindi told The Namibian yesterday, “they must all be submitted in writing and standard procedure is that replies will be given in two days.”In September last year, the Municipality denied that it had overcharged consumers.”Though the 10,2 per cent was approved, the City only introduced an average of eight per cent,” it maintained in a press statement then.Also in November, Mines and Energy Minister Erkki Nghimtina called on the Windhoek Municipality to hold consultative meetings with the ECB to “amend the City’s current unapproved schedule of tariffs with a view to rectifying all the errors as well as to iron out any discrepancies that might have occurred and that the eventual tariffs would fall within the ambit of the increase approved by the ECB Board”.”In so far as the former is higher than the increase approved by the Board, such amount will be offset against future tariff increases to the benefit of the City of Windhoek customers,” Minister Nghimtina demanded.Six months of overcharging has negatively affected local manufacturers.”It has a serious impact on our operating costs and will affect our profitability,” Harry Erasmus, Managing Director of Plastic Packaging, told The Namibian yesterday.”We use a lot of electricity as we manufacture plastic bags and packaging materials.Manufacturers in Windhoek are already at a disadvantage because we pay about 40 per cent higher electricity tariffs than competitors in South Africa,” Erasmus added.The Windhoek municipality did, however, this month rectify the monthly levy which goes to the ECB.The approved levy increase was N$00,45 but the City increased it to N$00,50.It has now been decreased to the correct percentage of N$00,45.