On Wednesday, 31st of August 2022, Erongo RED announced an increase in the electricity tariffs for the 2022/2023 financial period at a press conference held at the company’s Head Office in Walvis Bay.
Addressing the media and Erongo RED Management members was the Erongo RED Chief Executive Officer, Mr Immanuel !Hanabeb. !Hanabeb stated that in June 2022, Erongo RED received communication from NamPower indicating that the electricity tariffs as approved by the Electricity Control Board (ECB) would increase by 7,3%, effective 01 July 2022. However, when Erongo RED reflected the 7,3% tariff increment against their customers consumption patterns, the actual impact on Erongo RED is a 9,4% increase. Subsequently to this announcement, Erongo RED submitted an application to the ECB for a tariff adjustment increase for the 2022/2023 financial year. After reviewing our application for the tariff adjustment, ECB approved a weighted average of 6,9% tariff adjustment effective 01 August 2022.
The impact of the 6,9% approved weighted tariff will vary depending on individual consumer consumption patterns, !Hanabeb further emphasized.
In relation to the statutory tariffs, !Hanabeb announced that the ECB Levy will remain unchanged for the period 01 July 2022 – 31 June 2023. However, the Ministry of Mines and Energy (MME) has not indicated the National Energy Fund (NEF) levy for the 2022/2023 financial period.
“These tariff increases are not unique to the electricity industry only. Almost everything, from basic commodities to material costs has gone up in the past few months due to various reasons. However, the main factor that influences our tariffs is the bulk tariff increase by NamPower. All these factors have an impact on the input cost to bring electricity to the end-user”, !Hanabeb further emphasized.
As part of Erongo RED’s continuous efforts to try to cushion the impact of the tariff increases on its customers, the company resolved to continue to support pensioners through the provision of subsidized (special) tariffs, and social (lifeline) tariffs initiatives. Other measures that Erongo RED also resolved on are the 0% increase on the Pre-paid Business Tariffs for the SMEs, the free prepaid installations for the pensioners, and the customers on the Debt Management program.
Furthermore, the company has also resolved to reduce the fixed charges on the first connection and the additional connection for the farms and plots by 50%.
In addition, !Hanabeb shared a glimpse of the strategies that Erongo RED is planning to implement as a way to provide better service to its customers at a reasonable price. Some of the strategies that !Hanabeb mentioned are diversifying their energy mix by exploring cheaper alternative energy sources, developing and promoting strategic business partnerships, reducing technical and non-technical electricity losses, and developing as well as implementing financing strategy, to mention a few.
Upon closing, !Hanabeb thanked everyone for attending the press conference and emphasized that Erongo RED remains committed to ensuring the distribution and supply of safe, reliable, sustainable and accessible electricity in the Erongo Region.