Utaara takes aim at electricity hikes amid low income households

Landless People’s Movement parliamentarian Utaara Mootu has criticised the annual increase in electricity tariffs, arguing that households continue to feel the financial strain of rising costs.

She raised the issue to minister of industries, mines and energy Modestus Amutse on Tuesday during the National Assembly session.

According to her, the Namibia Power Corporation requested an increase of 3.02%, of which 1.7% was approved.

Similarly, the Central North Regional Electricity Distributor applied for a 5.8% increase, with 3.8% being approved.

“The board has elucidated that this current framework operates under a cost-plus tariff methodology, enabling utilities to recover operational expenses while securing a regulated return on assets. Annual reviews include consultations with stakeholders, but the current framework does not fully evaluate socio-economic factors,” she said.

She said there are no binding assessments of household income trends, wage growth or affordability for low-income groups.

Currently, she added, 59.5% of households have access to electricity. Among these, 46.9% rely on off-grid energy solutions.

Mootu said the statistics indicate that approximately 212 519 rural households and 94 005 urban households remain without access to electricity.

Mootu said electricity has transcended from mere utility costs, emerging as critical determinants of food security, educational opportunities and the preservation of basic dignity.

Given that electricity tariffs are adjusted annually to reflect rising utility costs, Mootu questions why is there no equivalent mechanisms within the tariff-setting framework to assess or limit increases in relation to wage growth, household trends, or the real purchasing power of consumers.

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