Residents of Rundu have rejected NORED's tariff increase proposal of 3% for the 2025/2026 financial year.

The residents say the proposed percentages are high considering the challenges of unemployment.

At the moment, buying electricity for N$100 gives 38 units. Apart from high tariffs, the residents complained about poor customer service and a lack of infrastructure maintenance by NORED.

NORED's Acting Chief Executive Officer, Toivo Shovaleka, said the tariff increase proposal is due to the bulk tariff increase of 3.8%, which was granted to Nampower, as well as the cost of rural electrification.

"In the first instance, we have allowed for an increase of about 12% in matters relating to safety, health, and environmental costs. This is really to cater to all the safety issues which we have been experiencing for the past three years. We have launched a safety campaign in which we are educating the public, our own customers, and our staff to ensure that we achieve our strategic objective of zero harm. Through that, we want to make sure that the public out there and our employees are cared for."

With regard to network maintenance, he said Nored still has to adjust its network costs simply to ensure reliability while also running an ageing fleet.

Shovaleka stated that even if the Electricity Control Board approves its proposal, NORED will still struggle to cover its costs.

ECB's Executive of Economic and Market Regulations, Pinehas Mutota, highlighted that the public engagements are essential to promoting transparency, inclusivity and informed regulatory decision-making through the tariff-setting process.