30 Jun 2013 04:10
WALVIS BAY, 30 JUN (NAMPA) ? Residents of the Erongo Region are likely to see an increase of 11.7 per cent in electricity tariff as from 01 July 2013, if the Electricity Control Board (ECB) grants approval for such increase.
The acting Chief Executive Officer (CEO) of the Erongo Regional Electricity Distributor (Erongo RED), Claude Tjizo said this here on Friday as he addressed a media conference on the proposed tariffs for the 2013/2014 financial year.
He explained that over the past seven years, the cost of electricity from the national power utility has increased with an average by 18 per cent, and Erongo RED expects this trend to continue for several years until some of the envisaged electricity projects are operational.
Tjizo continued to explain that the Namibia Power Corporation (NamPower) increased its tariffs by 13 per cent for 2013/2014, and the impact felt by Erongo RED is estimated to be at about 16 per cent.
?The reason for this increase is to ensure cost reflectivity, and at the same time to provide reasonable tariffs to our residents. We have also been able to structure our tariffs so that we can offer average tariffs below NamPower?s increase,? he said.
He however did mention that this year?s tariff increase is well below the increase of last year.
Tjizo further indicated that since 2012, Erongo RED?s tariffs have drastically decreased compared to the other electricity distributors in the country.
He said to determine the tariff for this year, Erongo RED looked at various factors such as the impact of the 13 per cent increase by NamPower on Erongo RED, the impact on its end-users, envisaged capital projects of Erongo RED and the social and economic challenges of facing the customers.
Tjizo said his company is aware of the impact that the electricity increase has on its customers, and they have thus looked at possible measures of making electricity affordable.
?Some of these measures include a decision to ensure that all registered pensioners and low-income earners on a 30Amps breaker and below, will receive zero tariff increase, except for the ECB and National Energy Fund (NEF) levies. I am glad to say that since last year we have put measures in place to cushion the impact of electricity increase on our customers, especially the pensioners and the vulnerable people in our community,? he stated.