Tariff Information
ERONGO RED ANNOUNCES AN INCREASE IN TARIFFS FOR THE 2021_2022 FINANCIAL PERIOD
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.
Issued by:
Chief Executive Officer
Mr. Fessor Mbango
064 201 9000
For further information, kindly contact:
Mr. Benjamin Nangombe
Corporate Communication & Marketing Specialist
064 201 9000/ 0811426176
ABOUT ERONGO RED
Erongo RED is an electricity distributing company established in 2005 and is registered under the Companies Act of Namibia. The company has a significant presence in Erongo Region; and currently provides electricity to towns and villages in the Erongo Region and their surrounding farming and rural areas. It is the only company in Namibia that now offers electricity as low as N$1,44* (excluding NEF and ECB Levy) per unit. Erongo RED has through the implementation of the new tariff structures actually empowered the consumer to be in control of his/her electricity bill.
*terms and conditions apply
The suite of electricity tariffs at Erongo RED is designed to cater for a range of electricity consumption profiles. Where a customer implements a change in plant operation that alters the electricity consumption profile, it may be necessary to migrate to alternate tariff structures to avoid unnecessary electricity charges.
Erongo RED also works closely with various large power users to provide advice on energy efficiency matters with the intention of helping customers to attain high levels of energy efficiencies within their industrial unit.
Customers are encouraged to periodically study their load profiles and ensure that they purchase electricity on the most efficient tariff structure available.
For more information and advice, please contact the Erongo RED Revenue Protection Division on 064 214 600.
Network Demand Charge (NDC): is a charge that is variable on a monthly basis and is charged on the actual charge demand measured.
Network Access Charge (NAC): The network access charge should be the highest kVA that the customer expects the utility to be in a position to supply. The NAC is a tariff component that is fixed on an annual basis and is charged as a Charge N$/kVA on the greater of the Notified Maximum Demand or the actual demand.
Time of Use (TOU): means that the use of electricity at peak hours will be charged at a higher price than the normal flat rate.
Notified Maximum Demand (NMD): is the maximum demand notified in writing by the customer, which the customer requires in order to be in a position to demand and remains in force for a period of one year. Service Charge: is a fixed charge payable per account to recover service related costs.
