The Electricity Control Board (ECB) has approved an increase of 8.7% for NamPower bulk electricity tariffs, effective this month. That raises the tariff from N$1.82 to N$1.99 per kilowatt-hour.

The NamPower tariffs only impact 70% of distribution costs, with 30% being costs related to different licences.

The tariff increase is applicable to NamPower bulk customers, such as local authorities, regional electricity distributors, and regional councils, who are expected to pass on that cost to end users.

"All distribution utilities were urged, and they are formally requested to apply for the annual tariff reviews before the end of May 2023. Utilities that do not apply for the new tariff adjustments in time to coincide with the implementation of the bulk, which I just informed you is effective July 1, will lose revenue because they will be selling electricity based on outdated tariffs while purchasing electricity on the new tariffs," explained Robert Kahimise, CEO of the Electricity Control Board.

37 licensees have not yet applied for adjustments.

Among those that have applied for adjustments is NamPower, which applied for and was approved at 11,1% and 9,2%.

NORED applied for 10,5% and was approved for 9,8%.

Erongo Red requested 9,1%  but was granted 9%.

Reviews are conducted to ensure that utilities also collect revenue and provide efficient services.

Pinehas Mutota, General Manager for Economic Regulation, explained that when tariff calculations are done, the entity takes into account several factors, including the impact of the tariffs on the electricity supply industry, consumers, and the economy.

"The reason for different tariffs is that the distributor is responsible for delivering the service, and the cost structure is that 70% of that cost is mainly NamPower, so that is related to buying electricity from NamPower. That electricity was generated, imported, or bought from IPPs so that electricity is transported. When you drive around, you see those high-voltage transmission lights and networks to the consumers or close to the consumers, so that is the bulk."

The ECB says it is cognizant of the fact that the economy is depressed but adds that it is equally dependent on a reliable and affordable electricity supply.

The Board will continue to monitor and ensure that operational costs are contained and will put in place measures to ensure effective control and operational efficiencies.