Electricity price drops 2.5%

03 May 2019 | Energy

The Electricity Control Board (ECB) yesterday announced a 2.5% decrease in the bulk tariff for electricity - the first price drop in 36 years.

The bulk rate for power will drop from N$1.69 per kilowatt-hour to N$1.65. The new rate is effective from 1 July until 30 June next year.

NamPower had applied for a reduction of 3.11% but 2.5% was approved by the ECB.

The approved tariff decrease is applicable to all NamPower's bulk customers, including the regional electricity distributors, local authorities, regional councils and mines.

The distributors will individually apply to the ECB for a review of the tariffs they charge end users.

According to Foibe Namene, CEO of the ECB, the price drop was necessitated by the power crisis of 2015 when NamPower was forced to import more expensive electricity to ensure a constant supply.

“This led to an under-recovery amount incurred between 2015 and 2017.

The under-recovery amount was provided for in the tariff by the ECB over a three-year period, from 2015 to 2018,” Namene said. The under-recovery amount is now fully recovered and a tariff decrease has become necessary to ensure that the power utility does not over-recover on the tariff for the next year and that the tariff remains cost reflective, as directed by cabinet.

The tariff decrease, Namene explained, would “enable NamPower to fully recover its allowed operating costs and ultimately fulfil its financial obligations, including payments to local independent power producers”.







Namene added that the consumer tariff would most likely stay the same because the bulk tariff decrease absorbed the necessary inflationary adjustments for the coming year.



However, in terms of the future outlook, the ECB believes that the bulk tariff will increase by an average of 5% for the next five years, in line with inflation.



“It should be noted that external factors such as the impact of weather conditions, foreign-exchange fluctuations and other unforeseen circumstances have an impact on the future tariff outlook.”



Namene also announced that the cabinet had approved a Modified Single Buyer Market Model for the power industry, which will attract more independent power producers and promote investment in the sector.



“We are cognisant of the fact that the economy is highly dependent on reliable and affordable electricity supply. It is therefore the responsibility of the regulator to ensure a sustainable electricity industry at affordable tariffs,” Namene said.





YANNA SMITH

Similar News

 

Billionaire pushes oil deal

2 days ago - 18 September 2019 | Energy

Comsar, the proponent of a 250 megawatt power station, says the government is moving at snail's pace in getting the project off the ground.The company,...

Namibia aims to increase renewable energy

1 week ago - 13 September 2019 | Energy

Namibia aims to increase its share of renewable energy to 70% in about 10 years. Environment minister Pohamba Shifeta says in 2010 this share stood...

Power cut at education offices

4 weeks ago - 22 August 2019 | Energy

The Ohangwena education directorate's offices at Eenhana have been left without electricity, after Nored cut the power due to non-payment on Tuesday.According to sources, the...

Mega projects coming

1 month - 25 July 2019 | Energy

NamPower is planning multi-billion-dollar investments in power transmission and the generation of electricity over the next four years, which are outlined in its recently approved...

Judge leaves door open for Kalenga

2 months ago - 12 July 2019 | Energy

High Court Judge Thomas Masuku has left the door open for Konisa Eino Kalenga to bring a review application to challenge the designation and coronation...

NamPower granted permission to decrease tariffs

4 months ago - 02 May 2019 | Energy

The Electricity Control Board (ECB) today granted NamPower a 2.5% decrease in the bulk tariff for electricity, for the first time in 36 years. The...

Petrol up by 70c

4 months ago - 30 April 2019 | Energy

Namibian motorists will see a 70c increase in petrol and a 20c increase in 50ppm diesel as of midnight tonight. The mines ministry announced the...

Namcor to fly solo on fuel storage facility

5 months ago - 12 April 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) says it will have to manage the strategic fuel-storage facility on its own for now, as the tendering...

New Harambee electricity targets

6 months ago - 18 March 2019 | Energy

Deputy energy minister Kornelia Shilunga says government will soon commit itself to the 100% electrification of schools, hospitals and other public institutions, as well as...

Eskom too big to fail

7 months ago - 07 February 2019 | Energy

Eskom was too big and too important for South Africa to be allowed to fail, President Cyril Ramaphosa said on Tuesday.The troubled South African state-owned...

Latest News

Snuffed out

9 hours ago | Accidents

JANA-MARI SMITHA total of 101 people have died in 335 car crashes around Namibia in the past month.Experts agree that driver attitudes, and passengers' acceptance...

We need a lasting solution

9 hours ago | Columns

We have dedicated our front page today to all those who have lost their lives in road crashes this past month. Given our space constraints...

25 years for axe murderer

9 hours ago | Justice

A Rundu man has been sentenced to 25 years behind bars for killing his grandfather with a traditional axe, a panga and a knife after...

Liquidators hunt N$1bn

9 hours ago | Justice

The liquidators of the SME Bank claim that Enock Kamushinda, the Metropolitan Bank of Zimbabwe (MetBank) and World Eagle Investments should be held liable for...

Orphan fraud case ready for...

9 hours ago | Justice

The case of a local estate administrator, who stands accused of fraud and embezzling funds belonging to several orphaned children between 2015 and 2017, is...

PDK heats it up

9 hours ago | Art and Entertainment

First things first; PDK's Saka music video is the best Namibian music video shot in 2019 - let's just get that out of the way....

Timo Kevin drops debut album

9 hours ago | Art and Entertainment

It is quite a spectacle to witness a unique artist popping up on the music scene and remaining true to themselves until their presence is...

One Africa TV expands its...

9 hours ago | Art and Entertainment

In a move aimed at taking its vibrant and diverse content even further beyond the boundaries of traditional media, One Africa TV (OATV) signed a...

The fight upcoming artists endure

9 hours ago | Columns

The tenacity of upcoming artists to never give up in the face of countless 'no's' given to them is what eventually takes them into the...

Load More