New electricity bill tabled

MINES and Energy Minister Erkki Nghimtina tabled a new Electricity Bill in Parliament on Thursday, giving broader powers to the regulatory body, the Electricity Control Board (ECB), to accommodate necessary restructuring of the electricity industry.

The previous bill of the year 2000 needed extensive revision and it was necessary to draft new legislation, he said. “The main goals to be achieved with the new bill are efficiency gains, financial viability, cost-reflective electricity tariffs, rationalisation and creating a conducive environment for participation of the private sector,” Minister Nghimtina pointed out.”Several discrepancies, loopholes, oversights and deficiencies in the previous Act of 2000 have been encountered.Another aim is to ensure more transparency in the conduct of activities by licensees and the ECB.The new draft also creates better mechanisms whereby the ECB and the Minister can deal with crises such as the total failure of a licence holder to supply electricity in its area,” the Minister told the House.He added that three regional electricity distributors (REDs) had been created, which had taken over functions such as setting electricity tariffs and billing consumers from municipalities.Two more REDs – one for the central region, including Windhoek and Gobabis, and one for southern Namibia – will still be established this year.Although he did not mention any details, Nghimtina said passing the Bill was urgent.”The current deficiencies of the existing Electricity Act had to be addressed by the new bill, otherwise the Kudu gas power project and any other potential electricity generation projects could be derailed,” Nghimtina added.Debate on the bill is expected to start this week.”The main goals to be achieved with the new bill are efficiency gains, financial viability, cost-reflective electricity tariffs, rationalisation and creating a conducive environment for participation of the private sector,” Minister Nghimtina pointed out.”Several discrepancies, loopholes, oversights and deficiencies in the previous Act of 2000 have been encountered.Another aim is to ensure more transparency in the conduct of activities by licensees and the ECB.The new draft also creates better mechanisms whereby the ECB and the Minister can deal with crises such as the total failure of a licence holder to supply electricity in its area,” the Minister told the House.He added that three regional electricity distributors (REDs) had been created, which had taken over functions such as setting electricity tariffs and billing consumers from municipalities.Two more REDs – one for the central region, including Windhoek and Gobabis, and one for southern Namibia – will still be established this year.Although he did not mention any details, Nghimtina said passing the Bill was urgent.”The current deficiencies of the existing Electricity Act had to be addressed by the new bill, otherwise the Kudu gas power project and any other potential electricity generation projects could be derailed,” Nghimtina added.Debate on the bill is expected to start this week.