The Electricity Control Board has announced an increase in the average bulk price by 7.3 percent from the current approved tariff of N$1.6982 per kilowatt-hour to N$1.8222 per kilowatt-hour for the financial year 2022/2023.
Acting ECB Chief Executive Officer (CEO) Rachel Boois said the board met in April to discuss a tariff application submitted by NamPower for a 12.78 percent effective bulk tariff increase (inclusive of generation and transmission), resulting in a rise from an average N$1.6982 per kilowatt-hour (kWh) to N$1.9153 per kilowatt-hour (kWh) for the financial year 2022/2023.
However, the allocation was reviewed, and a 7.3 percent increase was approved.
“After due consideration and in accordance with the tariff review process, the Electricity Control Board resolved to increase the average bulk tariff with 7.30 percent from the current approved tariff
of N$1.6982 per kilowatt-hour to N$1.8222 per kilowatt-hour for the period 2022/2023. The approved increase follows a tariff decrease in 2019/2020, no tariff increase for 2020/2021 and an increase of 2.29 percent in 2021/2022,” said Boois.
The approved tariff adjustment is effective from 1 July 2022.
According to Boois, the impact of the Covid-19 pandemic and the current economic climate were considered in this decision. Electricity tariff reviews are conducted annually to ensure that utilitie charge appropriate tariffs to collect enough revenue to provide reliable and efficient services at affordable cost-effective rates.
“In reviewing the tariff, the ECB considered several factors, including the impact of the tariffs on the Electricity Supply Industry, consumers, and the economy at large. In particular, the impact of the
COVID-19 pandemic on several industries and the consumers, as well as the current economic climate, were considered. The ECB is cognisant that prices of goods and services have been
increasing, and this is negatively affecting consumers. As part of the review process, the ECB consulted different stakeholders through a stakeholder meeting, at which NamPower presented its application to the stakeholders,” Boois added.
Furthermore, according to Boois, the tariff will apply to NamPower wholesale customers as well as distribution utilities such as Regional Electricity Distributors (REDs), Local Authorities, and Regional Councils, who will have to apply to the ECB individually for a review of their distribution tariffs, which will be applied to end consumers once approved.
According to the National Integrated Resource Plan, future tariffs will rise in step with inflation and to cater for new generation.