Electricity tariff increases announced

The Electricity Control Board (ECB) has announced increases approved for end-user tariffs that distribution utilities across Namibia may implement as of this month.The announcement follows the May approval of NamPower’s bulk electricity tariff increase set at 3.8%.The national electricity utility had asked for a substantial 17.44% increase for the 2025/26 financial year, but due to a central government subsidy of N$283 million, equivalent to a 3.8% increase according to the ECB, the board decided to award NamPower only a 3.8% increase to bulk tariffs charged to Namibian distributors.Full increase for ErongoRedRegional Electricity Distributors (REDs), local authorities, regional councils, and large industrial transmission customers like mines add additional charges to their customers following the increase from N$1.98 per kWh to N$2.05 per kWh applicable to what they pay when buying electricity from NamPower.These additions must be approved by the ECB, and the approved increases have now been announced, effective from 1 July.NamPower’s distribution prices, apart from bulk sales, have been increased by 1.7%, as opposed to the 3.02% increase it had requested.CENORED may now ask its clients to pay 3.8% more than last year, although less than the 5.8% that the regional distributor requested the ECB to approve. CENORED Omaheke asked for a 1.5% increase, but the board only approved an increase of 0.75%.Oshakati Premier Electric is now authorised to charge 3.5% more, although the distributor had applied for a 4.19% increase. Only ErongoRed received permission for its full requested increase of 3.7%.All these increases are in effect from 1 July, although pre-paid sales price increases were to be implemented from 4 July.Increases delayedThe ECB also approved increases of 3.9% for the Windhoek municipality and 4% for NORED, although increases for the capital and the northern distributor are on hold.The City of Windhoek asked for a 4% increase, while NORED requested a 7.4% increase. Nevertheless, NORED and the Windhoek municipality still have to fulfil certain conditions before their increases may come into effect.NORED needs to submit audited financial statements for 2022/23, obtain an auditor’s commitment to finalise their 2023/24 audited financial statement, and submit power quality of supply and quality of service reports before its increases can come into effect.The City of Windhoek must still submit operating and reporting manual financial statements for 2023/24, provide the ECB with detailed reports on electricity business unit ring-fencing progress statute reports, and measures to fully ring-fence the business unit, as well as its power quality of supply and of service reports, the ECB said.WarningIn the same breath, the board warned against late submission of applications for tariff reviews, pointing out that this practice leads to revenue losses, “particularly on prepaid sales, and affecting utilities’ ability to meet obligations and deliver reliable services. Going forward, habitual non-compliance will not be tolerated, and all licensees are directed to submit their tariff applications promptly following the bulk tariff (adjustment) announcement,” ECB chief executive Robert Kahimise said in the announcement.

Electricity tariff increases announced

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Republikein 2025-08-25

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Electricity tariff increases announced

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