Erongo RED anticipating revenue of more than N$1 billion

13 Jul 2016 15:00pm
WALVIS BAY, 13 JUL (NAMPA) – The Erongo Regional Electricity Distributor (Erongo RED) anticipates collecting more than N.dollars 1 billion in revenue in the 2016/17 financial year.
This is after increasing the electricity tariff for the same period to 6.9 per cent. Tariffs increased by 7.7 per cent in the 2015/16 financial year.
Erongo RED Chief Executive Officer (CEO) Robert Kahimise made this announcements at a media conference in Walvis Bay on Tuesday.
He further said this year, the company budgeted N.dollars 121 million to be spent on various capital projects such as rural and urban electrification, as well as the upgrading of electricity facilities in the Kuisebmund and Narraville residential areas in Walvis Bay, amongst other projects.
“The current positive position of the company has provided the required impetus to invest in these capital projects, to ensure that we execute our mandate to distribute electricity,” he said.
Kahimise said the Electricity Control Board (ECB) granted NamPower a tariff increase of 16.71 per cent, with Erongo RED being granted an increase of 6.9 per cent.
Kahimise said the increase in electricity prices represents a significant cost for consumers, especially for low income and financially vulnerable customers.
“To assist these customers, we recommended an average of 3.1 per cent increase for this group. I am happy to say that our request was favourably considered by ECB and for 2016/17, the pensioner and low income group will only get an average increase ranging from 3.1 per cent to 4.8 per cent.”
He said in 2015/2016, the company spent almost N.dollars 15 million on subsidising electricity for pensioners and low income earners.
This subsidy supports over 10 000 customers throughout the region, of which 4 827 are pensioners.
Erongo RED also subsidises the installation of prepaid electricity meters.
(NAMPA)
PKS/AS/CT