New Erongo RED scheme to help low-income users keep lights on

Erongo RED will roll out an electricity credit system for low-income households in 2026, chief executive Immanuel !Hanabeb announced at the company’s 20th anniversary stakeholders’ gala on Friday.The initiative, aimed at prepaid users who run out of electricity before payday, will allow households to request between 10 and 30 units on credit, with repayments automatically deducted once purchases resume.“It’s not for free,” !Hanabeb clarified. “But you will be able to request... and we’ll recoup the cost later.”The new scheme forms part of Erongo RED’s broader affordability strategy. The company currently subsidises more than 11 000 vulnerable and elderly customers, with the annual subsidy having increased from N$500 000 to over N$20 million.“We buy electricity at up to N$2.60 per unit and sell it at N$1.80,” !Hanabeb confirmed.Into the lightDespite annual revenues exceeding N$1.6 billion and assets over N$2 billion, he noted that more than 16 000 households in the Erongo region remain unelectrified.The company aims to connect at least 1 806 new households in 2025, targeting a 2.5% to 5% increase in electrification annually, funding permitting.“Please pay your dues,” !Hanabeb told stakeholders. “If you don’t pay, we would not be able to provide services also to our communities.”Erongo RED also plans to invest in electric vehicle infrastructure, including a proposed charging station between Windhoek and the coast.The company now serves over 53 000 customers and employs 310 staff, up from 103 at its founding in 2005.Board chairperson Zoe Nambahu said they are exploring long-term electricity procurement solutions to address high tariffs.“Any decision must be done well to have a lasting impact,” she said. “Good governance is the foundation on which decision-making is based.”Equal accessNambahu warned that rising electricity costs threaten national industrialisation.“Electricity is a key enabler of development,” she said, emphasising that subsidies must reach only genuinely vulnerable households. “With compassion also comes abuse," she cautioned.Founding CEO Gerhard Coeln described tariff harmonisation across the Erongo region as one of Erongo RED’s key achievements.“Consumers are now able to enjoy a level playing field with regard to service delivery,” he said.During the event, Deputy Prime Minister and mines and energy minister Natangwe Ithete urged regional electricity distributors like Erongo RED to assist in reducing electricity prices. Namibia currently imports 60% to 70% of its electricity from neighbouring countries.“The burden of this dependence is borne disproportionately by low-income households,” he said. “Monthly bills present a hard choice between switching on the lights or putting food on the table.”Ithete said the country’s abundant solar, wind and natural gas potential must be fully utilised.“The Namibian government is fully committed to expanding domestic generation capacity not only to enhance energy security but also to lower the cost of electricity for our people, especially the poor and vulnerable,” he noted.

New Erongo RED scheme to help low-income users keep lights on

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Namibian Sun 2025-09-16

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New Erongo RED scheme to help low-income users keep lights on

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Namibian Sun 2025-09-16

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