REDs remain critical to Namibia’s power sector, says Ithete
• Tariff pressures, governance
challenges test RED model
Deputy prime minister says Namibia's regional electricity distributors face rising pressure over tariffs, debt and governance.
Adam Hartman
Swakopmund
Deputy prime minister and industries, mines and energy minister Natangwe Ithete has reaffirmed that Namibia’s regional electricity distributors (REDs) remain central to the country’s power sector, despite persistent concerns over tariffs, debt and funding arrangements.
Speaking at an Erongo RED shareholder summit in Swakopmund on Monday, Ithete said the reform that created REDs more than 20 years ago continues to provide the “best chance of a stable distribution system that works for the whole country.”
“The goal was simple and still valid today: to create a sector that is financially sound, professionally managed and able to serve every household and business with quality power at a fair price,” he said.
Ithete, however, acknowledged public frustration with tariff increases but cautioned against unsustainable government subsidies.
He said last year’s one-off relief to cushion consumers was not a viable yearly option.
“This year, the average tariff increase within the Erongo RED area is around 3.7%. Moderation helps, but every dollar must be justified by efficient operations and a fair return to sustain the distribution network,” he said.
Ithete emphasised measures such as inclining block tariffs and low-capacity connections to shield low-income households, while stressing that universal access by 2030 remained a government target.
“Lighting up the last house by 2030 is more than a slogan. It is a promise,” he said.
Challenges and
partnerships
The minister pointed to electrification partnerships between government and Erongo RED.
In 2024/25, Erongo RED invested N$10 million of its own funds into projects in Karibib, Usakos and Henties Bay, and this year signed a further agreement valued at N$20 million.
“These are not abstract commitments, they are real lights in real homes,” Ithete said.
Ithete listed four continuing obstacles for the current model: lost municipal revenue when electricity distribution is transferred to REDs, unpaid debts to NamPower in Hardap and //Kharas, overlapping roles between REDs, NamPower and municipalities, and public distrust due to tariffs.
“The correct response to public concern is not defensiveness, but rather open communication, simple tariff explanations and visible improvements in service delivery,” he advised.
He added that the Electricity Control Board is drafting a transparent funding framework for municipalities and debt repayment arrangements.Erongo’s economic
backbone
Erongo governor Nathalia /Goagoses told the summit that the region’s role as Namibia’s economic engine could not be realised without reliable electricity supply.
“Erongo is not an ordinary region. We are an economic engine room, home to vast mineral wealth in uranium, gold, marble and salt, lithium... the list of minerals is endless,” she said.
She linked energy security to opportunities in oil, gas and green hydrogen, saying Erongo RED must be seen as a strategic development partner.
“None of this potential can be realised without a reliable, secure and sustainable electricity supply,” she said.
/Goagoses urged constructive debate to close inequalities between constituencies, emphasising collaboration and integrated solutions.
Adapt to evolving
landscape
Erongo RED vice chairperson Martin Tjipita said consultations with shareholders highlighted concerns over governance, dividend policy and perceptions of unequal investment across towns. He called for transparent reporting and alignment with government priorities.
Chairperson Erikson Mwanyekange said Erongo RED must adapt to rising costs, regulatory changes and customer expectations. He urged innovation, sustainability and stronger responses to service disruptions, including those linked to infrastructure theft.
“We must understand how Erongo RED is preparing itself to navigate the evolving landscape, and more importantly, how it plans to stay ahead,” he said.
Swakopmund
Deputy prime minister and industries, mines and energy minister Natangwe Ithete has reaffirmed that Namibia’s regional electricity distributors (REDs) remain central to the country’s power sector, despite persistent concerns over tariffs, debt and funding arrangements.
Speaking at an Erongo RED shareholder summit in Swakopmund on Monday, Ithete said the reform that created REDs more than 20 years ago continues to provide the “best chance of a stable distribution system that works for the whole country.”
“The goal was simple and still valid today: to create a sector that is financially sound, professionally managed and able to serve every household and business with quality power at a fair price,” he said.
Ithete, however, acknowledged public frustration with tariff increases but cautioned against unsustainable government subsidies.
He said last year’s one-off relief to cushion consumers was not a viable yearly option.
“This year, the average tariff increase within the Erongo RED area is around 3.7%. Moderation helps, but every dollar must be justified by efficient operations and a fair return to sustain the distribution network,” he said.
Ithete emphasised measures such as inclining block tariffs and low-capacity connections to shield low-income households, while stressing that universal access by 2030 remained a government target.
“Lighting up the last house by 2030 is more than a slogan. It is a promise,” he said.
Challenges and
partnerships
The minister pointed to electrification partnerships between government and Erongo RED.
In 2024/25, Erongo RED invested N$10 million of its own funds into projects in Karibib, Usakos and Henties Bay, and this year signed a further agreement valued at N$20 million.
“These are not abstract commitments, they are real lights in real homes,” Ithete said.
Ithete listed four continuing obstacles for the current model: lost municipal revenue when electricity distribution is transferred to REDs, unpaid debts to NamPower in Hardap and //Kharas, overlapping roles between REDs, NamPower and municipalities, and public distrust due to tariffs.
“The correct response to public concern is not defensiveness, but rather open communication, simple tariff explanations and visible improvements in service delivery,” he advised.
He added that the Electricity Control Board is drafting a transparent funding framework for municipalities and debt repayment arrangements.Erongo’s economic
backbone
Erongo governor Nathalia /Goagoses told the summit that the region’s role as Namibia’s economic engine could not be realised without reliable electricity supply.
“Erongo is not an ordinary region. We are an economic engine room, home to vast mineral wealth in uranium, gold, marble and salt, lithium... the list of minerals is endless,” she said.
She linked energy security to opportunities in oil, gas and green hydrogen, saying Erongo RED must be seen as a strategic development partner.
“None of this potential can be realised without a reliable, secure and sustainable electricity supply,” she said.
/Goagoses urged constructive debate to close inequalities between constituencies, emphasising collaboration and integrated solutions.
Adapt to evolving
landscape
Erongo RED vice chairperson Martin Tjipita said consultations with shareholders highlighted concerns over governance, dividend policy and perceptions of unequal investment across towns. He called for transparent reporting and alignment with government priorities.
Chairperson Erikson Mwanyekange said Erongo RED must adapt to rising costs, regulatory changes and customer expectations. He urged innovation, sustainability and stronger responses to service disruptions, including those linked to infrastructure theft.
“We must understand how Erongo RED is preparing itself to navigate the evolving landscape, and more importantly, how it plans to stay ahead,” he said.
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