Steep power price increases on the horizon

ELECTRICITY tariffs could rise by as much as 50 per cent in the next five years.

The Electricity Control Board (ECB) has warned that this is the situation Namibian consumers could face if they do not begin using the precious commodity more prudently. In an exclusive interview with The Namibian last week, ECB Chief Executive Officer Siseho Simasiku said the “time is now” for Namibians to start taking measures to manage their electricity consumption better.”As a regulator the ECB sees that electricity tariffs within the coming five years will reach certain levels where some individuals won’t be able to afford it, especially the poor,” said Simasiku.”We are trying to be oblivious of what’s happening and that’s not good.”The ECB is driving a process to identify demand-side management (DSM) measures for implementation as soon as possible.These would minimise electricity consumption in households, business and industry.A second study on a shortlist of DSM measures is set to be completed in July, when the ECB hopes to hold a national conference with municipalities and regional councils to discuss the electricity-saving measures.Simasiku said Namibia had to aggressively pursue renewable energy methods and while certain sectors were already doing this, their efforts had be consolidated.”It is not the ECB or the Government’s fault that we are in the situation we find ourselves in.But I believe that everybody can take certain measures which may help us to be in a better situation,” he said.Simasiku said Namibia had to look at introducing a tariff structure which would charge according to when electricity was used and that people should be compensated in times when they did not use electricity.Another measure to ensure that demand does not exceed supply would be to consider shifting peak periods, but this would involve the full co-operation of consumers, he said.As an immediate electricity-saving measure, the ECB is encouraging the use of compact fluorescent lighting (CFLs) as opposed to ordinary light bulbs.”Let’s be ahead of time.Let’s not wait until it’s [electricity shortage] already there,” said Simasiku.NEED TO PLAN AHEADWith Namibia dependent on South Africa for more than 50 per cent of its electricity supply, Simasiku said Namibia had to look beyond the present to sources of electricity which would last well beyond the next three decades.Even if Kudu Gas got off the ground soon, Simasiku said, Namibia had to also look beyond its 30-year lifespan.South African power utility Eskom has already warned that it would not be prepared to up its exports to its neighbours in the wake of the energy crunch the Western Cape in particular is currently experiencing.Last week Eskom announced that it would start introducing a new tariff system which would make it very expensive to use electricity during the traditional peak consumption periods – early morning and late afternoon.Eskom is now warning consumers by flashing alerts on the South African national broadcaster (SABC) television channels when electricity use was becoming too much and an area was in danger of being cut off.Nuclear power station Koeberg’s number two generator is currently offline while it undergoes maintenance scheduled to be completed by the end of July.The Windhoek Municipality announced last week that it would help NamPower to save electricity by turning off geysers in the City when demand on the power grid becomes too much.The ECB believes that many people would be willing to change over to renewable-energy apparatus such as solar water heaters if they were given the financial support to facilitate the conversion.Simasiku said once another national workshop was held in a few months’ time to discuss the implementation of a shortlist of DSM measures, it would be decided whether the ECB, NamPower or the Ministry of Mines and Energy should drive the implementation process forward.The implementation of DSM measures is expected to hold huge financial implications.In an exclusive interview with The Namibian last week, ECB Chief Executive Officer Siseho Simasiku said the “time is now” for Namibians to start taking measures to manage their electricity consumption better.”As a regulator the ECB sees that electricity tariffs within the coming five years will reach certain levels where some individuals won’t be able to afford it, especially the poor,” said Simasiku.”We are trying to be oblivious of what’s happening and that’s not good.”The ECB is driving a process to identify demand-side management (DSM) measures for implementation as soon as possible.These would minimise electricity consumption in households, business and industry. A second study on a shortlist of DSM measures is set to be completed in July, when the ECB hopes to hold a national conference with municipalities and regional councils to discuss the electricity-saving measures.Simasiku said Namibia had to aggressively pursue renewable energy methods and while certain sectors were already doing this, their efforts had be consolidated.”It is not the ECB or the Government’s fault that we are in the situation we find ourselves in.But I believe that everybody can take certain measures which may help us to be in a better situation,” he said.Simasiku said Namibia had to look at introducing a tariff structure which would charge according to when electricity was used and that people should be compensated in times when they did not use electricity.Another measure to ensure that demand does not exceed supply would be to consider shifting peak periods, but this would involve the full co-operation of consumers, he said.As an immediate electricity-saving measure, the ECB is encouraging the use of compact fluorescent lighting (CFLs) as opposed to ordinary light bulbs.”Let’s be ahead of time.Let’s not wait until it’s [electricity shortage] already there,” said Simasiku.NEED TO PLAN AHEAD With Namibia dependent on South Africa for more than 50 per cent of its electricity supply, Simasiku said Namibia had to look beyond the present to sources of electricity which would last well beyond the next three decades.Even if Kudu Gas got off the ground soon, Simasiku said, Namibia had to also look beyond its 30-year lifespan.South African power utility Eskom has already warned that it would not be prepared to up its exports to its neighbours in the wake of the energy crunch the Western Cape in particular is currently experiencing.Last week Eskom announced that it would start introducing a new tariff system which would make it very expensive to use electricity during the traditional peak consumption periods – early morning and late afternoon.Eskom is now warning consumers by flashing alerts on the South African national broadcaster (SABC) television channels when electricity use was becoming too much and an area was in danger of being cut off.Nuclear power station Koeberg’s number two generator is currently offline while it undergoes maintenance scheduled to be completed by the end of July. The Windhoek Municipality announced last week that it would help NamPower to save electricity by turning off geysers in the City when demand on the power grid becomes too much.The ECB believes that many people would be willing to change over to renewable-energy apparatus such as solar water heaters if they were given the financial support to facilitate the conversion.Simasiku said once another national workshop was held in a few months’ time to discuss the implementation of a shortlist of DSM measures, it would be decided whether the ECB, NamPower or the Ministry of Mines and Energy should drive the implementation process forward.The implementation of DSM measures is expected to hold huge financial implications.