Erongo RED announced an increase in the electricity tariffs for the 2021/2022 financial year at a press conference held at its Head Office on Tuesday, 14 September 2021.
Speaking at the press conference, the Erongo RED’s Chief Executive Officer, Fessor Mbango said that in April 2021, the Electricity Control Board (ECB) announced that NamPower’s average tariff would increase from N$1.65 to N$1.69 per kilowatt-hour for the 2021/2022 financial year. Subsequently, Erongo RED submitted an application to the Electricity Control Board (ECB) and after a thorough review of the submission, the Electricity Control Board (ECB) approved a weighted average of 1.7% tariff adjustment effective 01 July 2021 to 30 June 2022.
The 1.7% average tariff adjustment resulted in the increases on different customers segments and the impact will vary depending on individual consumer consumption patterns, Mbango further said.
Mbango also highlighted that Erongo RED did not increase its tariffs for the past two financial years and with every increase proposal to the Electricity Control (ECB), Erongo RED takes into account various factors such as the tariff adjustment by NamPower, the impact it will have on customers, concerns from the community, input from the Consumer Liaison Committee, envisaged infrastructure development, electrifications and operational cost.
For this financial year, we also took into account the current economic situation and the impact of electricity cost on our commercial and industrial customers, the impact of COVID-19 on the industries, businesses, farmers and our residential consumers, Mbango further emphasized.
Erongo RED currently subsidizes over 10595 customers, which consist of pensioners and lifeline customers. This represents 24% of the company’s active customer base. Despite the increase, pensioners will continue to enjoy other benefits such as no basic charges up to 40-ampere circuit breakers, subsidized tariffs (special tariffs) up to 40-ampere circuit breakers and free installation of the prepaid box.
Mbango urged the customers to use electricity sparingly in order to spend less on electricity. He said that if people use electricity carelessly then regrettably they will have to pay for the energy consumed. Members of the community who are not able to pay electricity at the normal rate can apply for the lifeline tariff which applies to domestic customers with up to 20 Amperage connection at the nearest Erongo RED office.