Electricity tariffs are increasing at a rate higher than inflation, which worsens the economic situation for Namibians.

The Electricity Control Board (ECB) has approved tariff increments for about five licensees that exceed the inflation rate, while some other licensees are still waiting for approval for the 2023–2024 financial period.

This situation is likely to put additional financial strain on the citizens and businesses in the country.

Namibians will once again have to dig deeper into their pockets to keep the lights on.

Following the ECB's announcement of an increase of 8.97% for NamPower's bulk electricity tariff, power utilities were requested to apply for their annual tariff reviews before May 31, 2023.

As of April this year, the inflation rate stood at 6.1%.

Erongo RED, NamPower Distribution, NORED, and Okahandja are among those who received an increment above the inflation rate of 9.0%, 7.6%, 9.2%, 9.8%, and 7.3%, respectively.

Licensees such as the City of Windhoek, Kalkrand Village Council, and Osire Power are among those who applied after the due date with an application request of over an 11% tariff increment.

The review is ongoing and will be finalised by July 21, 2023.

In reviewing the tariff, the ECB states that it has considered several factors, such as the impact of the tariffs on the Electricity Supply Industry, consumers, and the depressed economy at large.

It is, however, equally dependent on reliable and affordable electricity supply, thus ensuring a sustainable electricity industry at affordable tariffs.