Cenored has proposed an increment from N$1.40 to N$1.46 per kilowatt hour on the overall tariff.

The increment was publicised at the Electricity Control Board (ECB) stakeholders' inaugural consultation with Otjiwarongo stakeholders on the Cenored distribution tariff application for the financial period 2024–2025.

ECB has not been forthcoming to discuss the electricity tariff increment with the community, hence the importance of stakeholders' consultation engagement.

ECB educated the stakeholders on how the tariff methodologies apply in determining tariffs.

The net metering rate reflects the average avoided cost when not purchasing electricity from Nampower, of which the increase is dependent on the Nampower tariff increase.

"The anticipated cost increase will be N$7.4 million to N$7.8 million, and the electricity that we are receiving is 5.9 GH. The overall tariff will be from N$1.24 to N$1.32 per kWh. So, it is the rate that we use to credit; we don't really pay cash out; we credit their electricity bill with the rate."

Cenored Chief Executive Officer Fessor Mbango explained why the tariff increase is necessary.

"The reason why the proposed tariff increase is multi-faceted and complex is that factors such as raising operational costs, infrastructure updates, and market dynamics all contribute to the need for adjustments in electricity pricing. All that might seem daunting, but it is crucial for us to navigate through them with transparency and clarity, guiding our path." 

Otjiwarongo residents gave their input on the proposed electricity increment tariffs, urging Cenored to be considerate of the financial burden the increase places on them.

Each year, ECB applies a cost-plus tariff methodology to determine electricity tariffs, starting with NamPower and followed by distributors like Cenored.

ECB will continue with their consultations, as it is a critical part of the tariff application review process and other regulatory processes.

The proposed tariff increase is from July 1st, 2024, to June 2025.