The private operator of the Musese green scheme in the Kavango West region, Winni Metzger, has urged the removal of electricity demand charges and levies, calling for solar installations to boost productivity.
He says money charged on agricultural projects by electricity providers should be refunded for the past five years as it escalates electricity costs at green schemes.
“This is a form of a tax collection hampering Namibia’s agricultural development,” Metzger says.
He raised this in a recent letter to Kavango East governor Julius Hambyuka on what can be done to make green schemes in both Kavango regions more productive.
The demand charge is for the development of installed infrastructure, such as transformers and power lines and the maintenance thereof.
It is charged at a fixed rate and is dependent on the business or company’s demand for electricity. The bigger the demand, the higher the monthly charges.
Metzger says because of the demand charge, about 60% of the money green schemes are making is returned to power providers.
In his letter, Metzger suggests that for green schemes to operate smoothly in Namibia, 2MW of grid-fed solar installation with a back-up generator must be installed at every green scheme.
He calls for the removal of the currently charged levies on grain production by the Namibian Agronomic Board, as well as levies on imported grain to be increased and the money to be reinvested in the sectors it came from.
Metzger says while some green schemes, such as those at Ndonga Linena, Sikondo, Shadikongoro, Mashare and Musese, are doing well in terms of production, Shitemo green scheme “is in a total mess” due to disputes.
Something needs to be done to bring the squabbling parties to the negotiation table, he says, so that the green schemes could become productive.
He says while the Mashare green scheme is productive, the Mashare Agricultural College is dormant. Last month, the government announced it would revive the college.
Late last month, Hambyuka confirmed that he received Metzger’s letter and that it contains some good suggestions.
He said he would table it at one of the regional council meetings.
Northern Regional Electricity Distributor (Nored) spokesperson Simon Lukas last week said demand charges for agricultural irrigation are not exclusive to Nored.
“It is an industry issue. It is part of the service electricity providers give to the users. It is not that we want to make money, but is something which large electricity users, such as green schemes, have agreed to pay for to the providers,” he said.
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