Electricity distributors eat into municipal revenues

OGONE TLHAGE WINDHOEKThe establishment of regional electricity distributors has eaten into the revenue of local authorities.This according to the president of the Namibia Association of Local Authorities, Moses Matyayi, who made the remarks in a recent interview with Namibian Sun.He suggested that local authorities’ management of electricity provision had not been optimal, which led to the establishment of the country’s three regional electricity distributors (REDs).“We used to operate with the core mandate of electricity and that brought in quite a good amount of money, but I should also say perhaps we did not manage that aspect very well,” he said.Despite the shortfall in revenue, Matyayi said there was still scope for local authorities to ensure service delivery amidst low revenue intake.He added that it was no excuse for service delivery not to be optimal on the part of local authorities.“We as local authorities have been providing services with a limping arm or a leg if you can say so and, to that effect, definitely resources are not equated to expectations. Of course, the outcome will not be what we want but that should not be an excuse,” he said. Still benefittingThe Electricity Control Board (ECB) acknowledged that revenues local authorities earned were affected by the creation of REDs.“Taking into consideration the potential impact on local authorities and regional councils, a local authority surcharge was created to continue providing financial support to local authorities and regional councils,” ECB acting CEO Pinehas Mutota said. Future restructuring in the energy supply industry would allow local authorities and regional councils to own assets and/or become shareholders in REDs to ensure they benefit, Mutota added. “This will entitle such local authorities and regional councils to all privileges and benefits reserved for company shareholders, including being the recipient of any dividend pay-outs,” he said.

Electricity distributors eat into municipal revenues

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Namibian Sun 2026-07-22

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Electricity distributors eat into municipal revenues

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Namibian Sun 2026-07-22

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