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

 

Judge leaves door open for Kalenga

4 days 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

2 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

2 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

3 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

3 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

5 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...

Opoloyela yolusheno lwoonkondo dhetango mOkatope ya tameke

5 months ago - 04 February 2019 | Energy

Omahangano gatatu ngoka ga pewa ootendela kehangano lyoku andjakaneka olusheno moNamibia lyaNamPower, opo ga tulepo oosasiyona ndatu dhoolusheno lyoonkondo dhetango mOkatope moshitopolwa shaShikoto oga tameke...

Okatope solar plants get off the ground

5 months ago - 01 February 2019 | Energy

Three companies awarded tenders by NamPower to set up three solar power plants at Okatope in the Oshikoto Region have started construction.NamPower signed power purchase...

Resized Kudu affordable - Namcor

5 months ago - 31 January 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) is confident that the revised Kudu gas-to-power project, which will now only supply energy to the local market,...

Seismic oil exploration starts offshore

5 months ago - 23 January 2019 | Energy

Augetto Graig Portuguese-based energy company Galp will start with a 3D seismic research campaign in Namibia’s Deep-water Offshore Licence PEL83 in the Orange Basin on...

Latest News

APP on warpath over late...

14 hours ago | Politics

The All People's Party (APP) is threatening to stop the Oshakati East by-election after its candidate Tangy Mike Shilongo failed to register in time.The deadline...

Houses turned into ablution blocks

14 hours ago | Education

Three incomplete teacher's houses constructed at Kasivi Combined School in the Kavango West Region have been turned into ablution facilities for learners.When Namibian Sun visited...

Making waves

14 hours ago | People

Justicia Shipena Alexander Skinner started swimming at a very young age and has had an exciting pool career to date. Skinner, who trains at the...

When accountability gathers dust

14 hours ago | Opinion

In August 2014, just months before the election that swept President Hage Geingob to power, commentators bemoaned the fact that outgoing head of state Hifikepunye...

‘Whomst’ are you?

14 hours ago | Columns

Justicia Shipena How do you respond to someone who asks: “What are you?” Clearly, there’s no right answer to such a weighty inquisition; yet,...

Genocide negotiations 'too slow'

14 hours ago | International

In Germany there is no doubt about the suffering that imperial Germany caused Namibians, says Daniel Günther, the president of the Bundesrat of the Federal...

Dam levels dismal

14 hours ago | Disasters

It appears that the only town in Namibia which is safe from water restrictions is Keetmanshoop. The latest dam bulletin, released by NamWater...

NDF troops accused of assault

14 hours ago | Crime

The Chinese owner of Alfa Construction Company at Ongwediva lost N$700 000 after his business partner allegedly transferred the money from the business bank account....

Poverty ministry clarifies its position

14 hours ago | Agriculture

Lot Ndamanomhata, spokesperson for the poverty eradication ministry, sent a statement to Namibian Sun to clarify the position of the ministry in terms of procurement...

Load More