On Thursday, 27 July 2017, the Chief Executive Officer, Mr. Fessor Mbango announced the average tariff increase of 8% for the period July 2017 to June 2018. The increase comes after NamPower was granted an 8% average weighted tariff increase for the same period. “The 8% average increase is the weighted average of different tariff categories applied to different groups of consumers in Erongo Region. This means that the actual impact on consumers will vary between 8% and 13% depending on the size of connection and consumption of individual customers”, Mbango said. View the Namibian government website here.
Mbango also said that despite the announced weighted increase 8% by NamPower, the actual impact to Erongo RED is 10.6%. The new tariffs are effective as from 01 July 2017.
The CEO further alluded that in 2016/2017, the company spend approximately N$15 million subsidizing the cost of electricity on pensioners and low income segment of their community. “That subsidy supports over 17 000 customers throughout the region of which 5262 are pensioners registered with Erongo RED. As opposed to the previous years, free prepayment installation will only be applicable to pensioners who are up to 40 amps connection size and the customers that are on the Debt Management programme.
The reason for this increase is to ensure cost reflectivity and also to recoup N$28 million for the envisaged Swakopmund Bulk upgrade. “When we were determining tariffs this year, we looked at various factors such as the impact of the 10.6% increase by NamPower on Erongo RED, the impact on end-users, envisaged capital projects, electrification projects, the replacement of some of the inherited aging infrastructure and servicing of loans”, Mbango said.
The CEO further said that Erongo RED is committed to supplement government efforts to build a robust, sustainable and prospering Namibia by the year 2030, by ensuring uninterrupted supply of electricity in the region of Erongo.