Patience Makwele
Windhoek residents, landlords and small business owners have warned that the latest electricity tariff increase could deepen financial pressure on households and businesses already struggling with rising living costs.
The concerns follow the Electricity Control Board’s (ECB) approval of a 3.7% bulk electricity tariff increase for NamPower, effective 1 August 2026.
The approved increase is lower than the 8.4% adjustment initially requested by NamPower, which would have pushed the average bulk electricity tariff from N$2.06 per kilowatt-hour (kWh) to N$2.23/kWh.
Under the approved adjustment, the average bulk tariff will increase to N$2.14/kWh.
Although the ECB said the increase passed on to consumers is below the current inflation rate, residents and businesses say even a lower adjustment adds to mounting financial pressure as the cost of essential goods and services continues to rise.
A Windhoek landlord said rising electricity and municipal costs are putting pressure on property owners, who may eventually be forced to increase rentals despite concerns that many tenants are already struggling financially.
“For us landlords, this is frustrating because I have my main house and then I have other rooms behind my house where people rent. The electricity is prepaid. When you look at all these expenses, recently the City of Windhoek increased tariffs and now the Electricity Control Board is also increasing electricity,” the landlord said.
The landlord said increased operational costs could leave landlords with no choice but to pass the burden on to tenants, many of whom are students and low-income earners.
“It simply means we also have to increase rent, but I do not think most of the tenants living behind my house will be able to afford it because most of them are students,” the landlord said.
He said rental income is increasingly being absorbed by electricity bills, municipal charges and other expenses.
“Currently I have five people renting in the yard. When these people pay rent, it all goes to municipality bills, electricity and everything else. We are not getting anything from this,” he said.
The landlord said the rising cost of living, coupled with limited employment opportunities, was making life increasingly difficult.
“Everything is becoming expensive but jobs are not increasing. The government needs to consider citizens because people are struggling,” he said.
Small business owners have also raised concerns over the impact of electricity costs on their operations.
Ndeshi Moses, a salon owner in Windhoek’s central business district, said businesses that depend on electricity are being squeezed by rising operational costs.
“The new tariffs for electricity have killed us completely because we are looking at issues like renting shops in Windhoek, especially in the CBD, where we rely on electricity for our businesses to operate,” Moses said.
She said small businesses already face multiple financial pressures, including rental costs and other municipal charges.
“For someone who works in a salon, we spend a lot on electricity. At this point, we might as well relocate and move to other small towns, but how can we move when our children are here in Windhoek?” she said.
Moses said rising costs directly affect workers whose income depends on customer numbers.
“My salary depends on how many people I braid and how many customers I get in a month. Sometimes we do not make much because business has its ups and downs,” she said.
She called on authorities to consider the impact of tariff increases on small businesses and ordinary residents.
“We cannot continue living like this. The government needs to do something about this,” Moses said.
Meanwhile, the ECB said the increase was moderated after the government provided financial support to cushion consumers from a higher adjustment.
ECB chief executive Robert Kahimise said the government provided N$90 million through the Long Run Marginal Cost Fund and the National Energy Fund, reducing the increase passed on to customers to 3.7%.
“Following engagements with the Honourable Minister of Industries, Mines and Energy and through a combined relief allocation of N$90 million, comprising N$50 million from the Long Run Marginal Cost Fund and N$40 million from the National Energy Fund, the increase was further reduced to 3.7%, which is the increase to be passed on to customers,” Kahimise said.
He said without the intervention, consumers would have carried the full impact of the approved 4.8% adjustment.
“In the absence of Government’s cushioning support, consumers would have carried the full weight of the 4.8% adjustment,” Kahimise said.
Kahimise said the ECB remained aware that tariff adjustments affect consumers but warned that keeping electricity prices artificially low could affect infrastructure maintenance and supply reliability.
“Holding tariffs artificially low carries hidden costs associated with ageing infrastructure, an unstable grid and possible blackouts due to failing equipment,” he said.
He added that the approved increase was below the current inflation rate and was not expected to place additional pressure on inflation.
The ECB said the approved revenue would allow NamPower to maintain financial sustainability, improve liquidity and service its debt obligations, while urging the utility to improve operational efficiency and strengthen cost recovery.
The City of Windhoek has also defended its recent tariff adjustments, saying municipalities are facing rising operational costs and must balance affordability with the need to maintain essential services.
Residents, however, say the concern is not only the percentage increase but the cumulative effect of rising costs across essential services.
