Erongo RED announced tariff increases for the 2023/2024 financial period at a press conference that was held on Thursday, 6 July 2023 in Walvis Bay.

Speaking to the media, the Acting Chief Executive Officer, Mr. Nico Niemand said that in May 2023, the Electricity Control Board (ECB) announced that NamPower’s average tariff will increase from N$1.82 to N$2.12 per kilowatt hour for the 2023/2024 financial year. This constitutes a weighted average increase of 8.97%, however, the actual impact on Erongo RED is 9.9%.

After engaging different stakeholders such as the Board, Shareholders, and the Consumer Liaison Committee, Erongo RED submitted an application to the Electricity Control Board (ECB) for tariff adjustments for the 2023/2024 financial year. “The Electricity Control Board (ECB) approved a weighted average of 9% tariff adjustment effective 01 July 2023, except for the prepaid tariff which is effective as of today, Thursday, 6 July 2023,” said Niemand.

According to Niemand, the impact of 9% on customers will vary depending on individual consumer consumption patterns and the type of connection. “It is worth mentioning that for every unit sold, about 70% goes to NamPower. Erongo RED uses the remaining 30% for its operations,” Niemand further said. With regard to the statutory levies, the ECB Levy will remain unchanged for the period of 12 months, starting 01 July 2023 to 30 June 2024. Similarly, the NEF Levy for 2023/2024 will remain unchanged as we have not received any indication of an increase from the Ministry of Mines and Energy.

Niemand also informed the media that the company had looked for all possible ways to cushion the impact on its customers whilst ensuring that service delivery is not compromised. “The company has resolved to continue with the subsidized tariffs for pensioners and low-income members in our community,” he added.
He further assured stakeholders that Erongo RED is committed to ensuring the distribution and supply of safe, reliable, sustainable, and accessible electricity.

During the press conference, Erongo RED’s Tariff Analyst, Mrs. Lynette Motonane, gave a breakdown of how the 9% weighted tariff increase will affect each customer segment. Motonane particularly drew attention to the social tariff segments where she highlighted that a 22,4% tariff increase has been approved for these segments. “The pensioners and the customers on the lifeline tariff will only feel the full impact of the 22,4% tariff increase once they exceed 400 units,” said Motonane. If they exceed the 400 subsidised units, the consumers under these categories will be required to pay the cost-reflective tariff. “For this 2023/2024 financial year, all social tariff subsidies are capped at 400 units per month. All units exceeding 400 will be charged at a cost-reflective tariff,” Motonane further said.