About Us
Corporate Profile
Envisaged as a dynamic and efficient commercialised electricity distributor for the Erongo Region, the Erongo Regional Electricity Distributor Company (Pty) Ltd, commonly known as Erongo RED, started trading on 1 July 2005, within the context of the Namibian Government’s National Development Plan.
Erongo RED was formed by merging the service of electricity distribution from the various municipalities and town councils in the Erongo region namely: the Municipality of Walvis Bay, Swakopmund, Henties Bay and Omaruru; the Town Council of Karibib, Usakos and Arandis; Erongo Regional Council; and NamPower. All these individual institutions are shareholders of Erongo RED. The initiative to create REDs was part of the Electricity Supply Industry (ESI) and Electricity Distribution Industry (EDI) restructuring Policy to distribute and supply electricity through economies of scale, the pooling together of human and operational capital resources to ultimately stabilize electricity prices and ensure reasonable, affordable and cost effective tariffs to electricity consumers.
The company purchases electricity from NamPower for both urban and rural customers. The electricity is then transmitted and distributed to the various customer segments ranging from residential, business and industrial. Erongo RED uses about 21% of the total electricity requirement of Namibia. The electricity industry in Namibia is regulated by the Electricity Control Board of Namibia, thus Erongo RED operates under set regulations.
The core business of Erongo RED is to distribute and supply safe, reliable, sustainable and accessible electricity. Erongo RED received a distribution and supply licence which is valid until 2030. The company also received a generation licence in 2006 for embedded power generation for a 220 kW wind generator near Walvis Bay, this being the first known network-connected wind generator in Namibia.
Business Divisions
The Office of the CEO is responsible for ensuring shareholder value by providing direction and co-ordination of key strategic decisions. Such directions will include corporate governance, risk and performance management. The office is also responsible for ensuring that Erongo RED’s activities support economic development and create investors’ confidence not only for Erongo RED but for the region as well. Other tasks include among other, the implementation of the strategic objectives of the company as well as fostering stakeholder relations and compliance with relevant legislation.
The Finance and Administration Business Unit is responsible for the financial administration and reporting systems, stores and procurement, financial risk management, fleet control and asset administration, financing and loan administration as well as working capital management.
This division is currently responsible for assisting the Executive Management to develop and monitor the implementation, evaluation and review of Erongo RED’s strategic plan. This process involves the implementation of the company’s strategy internally and externally so that all employees, partners, suppliers, and contractors understand the company-wide strategic plan and how it carries out the company’s overall goals.
The Human Capital and Corporate Services Division (HC) is responsible for the provision of an encompassing Human Resource Function which include the Corporate Support, Building and Security and Health & Safety and Occupational Health functions. As a company operating in a regulated market, Erongo RED has driven its strategy in realising real returns to its shareholders while keeping a strategic focus on the development & growth of its staff members and ensuring sustainability of the business for the benefit of its key resources (employees).
The Network Operations and Maintenance Business Unit is responsible for system availability, a control centre, quality of supply and network maintenance. During the period under review, the Business Unit was involved in normal operations, maintenance and upgrading of the electrical network.
The Network Engineering Business Unit is responsible for: Network planning & Design, Organisational Information and Communications Technology (ICT), Project Engineering, Project Management, Consultant interaction as well as electrical contractors’ registration and interaction. Most importantly, the BU ensures optimum Network Technical compliance and Professional Network Project Engineering Services to meet the electricity needs of present and future customers through timeous stakeholder engagement, implementation of all released planned projects, and anticipating how much power should be delivered as well as where and when it will be needed. The BU further ensures that the distribution and demand side options are adequately integrated and that the utilisations of assets are and remains optimised. Overall, the BU ensures a Systematic Network planning and expansion.
The Supply Business Unit is responsible for customer service performance, revenue performance, billing services, rate determination and implementation, revenue protection and collection, energy management and metering. The Business Unit is tasked with the responsibility to ensure accurate metering of electricity consumption, implementation of reasonable and cost-reflective tariffs, excellent customer service and revenue protection services. Providing customer service excellence is what will keep our customers and shareholders happy. Essentially, customer service excellence is an advantage that enables Erongo RED to survive in a tough and increasingly uncertain business climate.