The Windhoek Municipal Council has approved the Council’s Electricity Pricing Policy.
Windhoek mayor Joseph Uapingene said the electricity pricing policy provides a framework for the development of electricity tariffs.
Uapingene was speaking last week during the council’s ordinary meeting in Windhoek.
“It will help provide clarity on the tariff categories offered by council and map the way forward in meeting the needs of both customers and the council. The goal of the policy is to offer clients of the Municipal Council of Windhoek electricity at prices that are transparent and cost-reflective,” he said.
Uapingene said the policy was developed by the electricity department. Before approval, the draft policy was submitted to the Electricity Control Board (ECB) for review before proceeding with internal consultation.
“The framework for the development of electricity tariffs will serve as a guide for future tariff reviews in the medium to long term.
The purpose of the policy is to give guidance to the electricity department and the general public on how to apply the municipality’s electricity tariff portfolio by outlining numerous previously undocumented rules and requirements,” he said.
Uapingene said NamPower’s annual bulk purchase cost pricing signals play a significant role in determining the tariff adjustment.
Windhoek’s residents pay N$2,28 per unit for electricity including vendor fees.
The Namibian recently reported that the ECB increase raised the previous rate of N$1,82 per kilowatt-hour to N$1,98 per kilowatt-hour.
Previously, an electricity voucher of N$10 provided consumers with about 4,20 units of electricity, while N$20 provided 8,40 units. Currently, a voucher of N$50 provides about 21 units, while a N$100 voucher buys about 42 units.
These increases will continue for the next three years as the estimated tariffs for the 2024/25 financial year are expected to increase by N$2,08, by N$2,18 in 2025/26, and by N$2,29 per kilowatt-hour in the 2026/27 financial year.
“The City is required on an annual basis to submit its tariff approval application to the ECB.
Within this framework, the council has the autonomy to develop electricity tariffs and tariff categories that take into account the needs of its electricity consumers,” he said.
COSTLY ELECTRICITY
Labour researcher Herbert Jauch said an increase of 8% in electricity prices will be a disaster for most households.
“As electricity is essential for households, the additional increase is bad news, following shortly after the increase in the lending rates announced by the Bank of Namibia, thus any type of loans and bond repayments increase for households,” he said.
Jauch said it appears regulators do not realise that so many households are on the brink of economic collapse.
Erongored earlier this month said the impact of 9% on customers would vary depending on individual consumer consumption patterns and the type of electricity connection.
They said for every unit sold, about 70% goes to NamPower.
With regard to statutory levies, the ECB levy will remain unchanged for a period of 12 months from 1 July this year to 30 June 2024. Similarly, the National Energy Fund levy for 2023/24 will remain unchanged.
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