Martin Endjala
The Electricity Control Board (ECB) has cautioned that utility companies that fail to apply for tariff adjustments stand to lose revenue.
The board’s chief executive officer, Robert Kahimise, explained that failing to apply for tariff adjustment on time coincided with the implementation of the bulk tariff, which is effective 1 July.
“As we cautioned last year during the tariff review period, all distribution utilities ought to apply for their annual tariff review immediately after the announcement of the NamPower bulk tariff. This is so because utilities that do not apply for tariff adjustments in time stand to lose revenue because they will be selling electricity based on outdated tariffs while purchasing on new tariffs, especially prepaid revenue that is collected through prepaid sales,” he said.
The ECB announced the 2024–2025 NamPower bulk electricity tariff of 8% (inclusive of generation and transmission), which applies to NamPower bulk customers such as Regional Electricity Distributors (REDs), Local Authorities, Regional Councils, and Mines.
In accordance with the legal provisions, Kahimise said bulk customers are required to apply to the ECB for a review of their distribution tariffs, which, when approved, will apply to end consumers effective 1 July 2024.
The ECB has approved NamPower Distribution’s tariffs of 6%, CENORED’s 6%, CENORED Okahandja joint venture of 6.2%, and CENORED Omaheke joint venture of 1.5%.
As of the 2025–2026 financial year, CENORED will consolidate its tariffs into a single tariff.
Erongo RED got 6.6%, Keetmanshoop Electricity Business Unit (KEBU) got 6.4%, Oshakati Premier Electricity got 6%, and Rehoboth Town Council got a 6.4% tariff increase.
The CEO claims that because each licensee has a different cost structure, the tariffs they request vary.
NORED and the City of Windhoek both submitted applications for tariff increases before the end of May 2024; however, the ECB will withhold their approved tariff schedule until they comply.
NORED must first submit audited, up-to-date financial statements for the 2022 financial year, and the City of Windhoek must submit an updated progress report on their Electricity Department’s ring-fencing.
He stated that the ECB discourages distribution utilities from the practice of not applying on time because it is not financially sustainable.
It affects their financial ability to honour NamPower’s bills and further affects service delivery. “Therefore, we direct all licensees who are in the habit of submitting their tariff applications late to immediately comply and submit their reviews. However, going forward, non-compliance with regulatory directives shall not be tolerated,” he warned.
An economist, Josef Sheehama says this increase in electricity is a catastrophe and will negatively impact individuals and businesses.
“Given that the rate of tariff increase exceeds the rate of inflation, pressure is anticipated to be exerted on future inflation and, by extension, on the prices of goods and services. Rising electricity costs are pressuring businesses to reevaluate their workforce and stress-test wage increases that could have a big effect on their cash flow,” he noted.
He said these decisions could result in job losses and have a significant effect on Namibia’s economy overall.
A spokesperson for the Katutura Residents Committee told the Windhoek Observer that they are going to appeal the hike in tariffs for the City of Windhoek, which was approved at 7.9% but withheld due to not complying with ECB conditions.
“They do not understand what grounds they used to hike such tariffs and why they approve tariffs of a distributor who does not comply with ECB conditions,” he said.
