ECB approves 8 per cent hike in bulk electricity tariff

09 May 2017 17:10pm
WINDHOEK, 09 MAY (NAMPA) – The Electricity Control Board (ECB) has approved an 8 per cent bulk tariff increase for the 2017/18 financial year.
ECB Chief Executive Officer, Foibe Namene made this announcement in the capital on Tuesday, saying the hike translates to an effective bulk tariff increase from N.dollars 1.49 to N.dollars 1.61 per kilowatt-hour (kWh) when distributors and municipalities buy from NamPower.
“The approved tariff adjustment is effective as of 01 July 2017,” she said, adding the increase was approved to ensure the realisation of Vision 2030 and the Harambee Prosperity Plan.
Initially in its tariff review application, the national power utility, NamPower, requested for a bulk tariff increase with three options of 6.38 per cent, 10.08 per cent and 22.40 per cent.
“The three options submitted is in consideration of an under recovery of N.dollars 1.3 billion that NamPower incurred during the financial period 2015/16, during which period, Namibia and the southern African region experienced acute power shortages,” she said.
The approved 8 per cent increase, Namene said, would suffice for NamPower to cover its allowed operations costs, cover part of the under recovery of 2015/16, fulfil its financial obligations including payment to the local independent power producers and ensure a continued supply of electricity.
“Should the increase be lower than 8 per cent, it means that a large portion of the under recovery will be deferred to the following year which will be a burden in future tariff adjustments, and will therefore have an impact on the affordability of electricity,” she said.
Electricity suppliers may only charge an increase that has been approved by the ECB.
“After the announcement, they will have to put in their own applications that is applicable to their customers,” said Namene.
(NAMPA)
GH/LI/ND