Parliamentarian raises concern on excessive prices of electrical energy
Business Reporter
THE Electricity Control Board (ECB) of Namibia has introduced that it will host public consultations on the brand new annual bulk electrical energy tariff changes which can be applied from 1 July 2025.
Regarding the majority tariff public consultations, the ECB deliberate an extra public session for Otjiwarongo (thought of on account of centrality) on Friday 7 March 2025. The Windhoek public session will happen on 5 March.
The Electricity Control Board (ECB) conditionally authorized a decreased tariff hike of seven.9% in 2024. However, the federal government has since intervened by availing N$365 million to subsidize electrical energy shoppers for the 2024/ 025 monetary yr, successfully cancelling the increment for 2024 and 2025. The nation nevertheless might even see new hikes for the yr 2025.
Landless People’s Movement (LPM) MP, Aina Kodi questioned whether or not the ECB’s present mannequin viable for the livelihoods of unusual Namibian individuals who already battle with a repo price of seven.75% and an inflation price of about 4.90%.
“The ECB’s model appears disconnected from the economic realities faced by NamibiansWhile the government’s intervention provides temporary relief, there are concerns about what will happen beyond 2025, especially after the elections. The ECB has projected further increases in electricity tariffs for the subsequent years, with significant hikes expected from 2025/2026 onwards. The combination of high electricity tariffs, a steep repo rate, and inflation is crippling for households and businesses alike,” Kodi mentioned.
Robert Kahimise, the Chief Executive Officer of the ECB at a press briefing talking at a unique briefing nevertheless mentioned that public consultations accord electrical energy shoppers a possibility to ask questions, search readability and explanations on the majority electrical energy tariff software.
He additional added that final yr, the ECB authorized an 8% improve in NamPower’s bulk tariff for the 2024/2025 financial yr in April 2024, adopted by the distribution licensees’ tariffs in June 2024 which have been to take impact on 1 July 2024.
“After public concerns on electricity affordability, the Namibian Government availed approximately NS 365 million to subsidise electricity consumers for the 2024/2025 financial year, effective 1 July 2024 to 30 June 2025, which coincides with the financial year of the licensees. This meant that electricity consumers would pay the same tariff as per the 2023/2024 Schedule of Approved Tariffs (SoAT). Licensees were permitted under Section 27(3) of the Electricity Act to apply the 2023/2024 tariffs, factoring in the government subsidy,” Kahimise mentioned.
He added throughout the identical announcement, the ECB indicated that it will have interaction licensees on the modalities for recovering their authorized income necessities for the 2024/2025 interval.
Since authorities availed roughly N$ 365 million, of which roughly N$ 251 million would go to NamPower to make sure un-interrupted safety of electrical energy provide, and the remaining N$ 115 million to be utilised by the distribution licensees to minimize the affect of the electrical energy tariff on their clients, these entities needed to submit claims or invoices to obtain their parts of the subsidy quantity.
Kahimse mentioned that thus far authorities has paid a complete of N$ 78.7 million to licensees, the very best subsidy paid to NamPower as a bulk provider amounting to N$ 62.7 million, NORED N$ 8.7 Million and Erongo Red N$ 3.7 million.
The ECB has nevertheless an excellent quantity of N$ 10.5 million to among the claims which been acquired after the top of September 2024, and N$ 2 million in unclaimed subsidies. The unclaimed subsidies are from the Gobabis Municipality, Gochas Village Council, Osona Village, Roshkor Township, and Witvlei.
Pinehas Mutota. Executive of Economic and Markets Regulation on the ECB, raised concern that the village councils want to say these quantities to maintain their operations, and that if left unclaimed, this might affect their means to produce electrical energy, finally impacting finish shoppers negatively. He added that if left unclaimed this cash may very well be forfeited to the state for different urgent wants.