ECB awards NamPower approval to increase bulk electricity tariff by 13.22pc

WINDHOEK: The Electricity Control Board (ECB) has awarded NamPower approval to increase the bulk electricity tariff by 13.22 per cent – from N.dollars 1.03 to N.dollars 1.17 – per kilowatt-hour (kWh) for the financial year 2014/15, effective 01 July this year.

In a statement issued to Nampa yesterday, ECB’s Acting Chief Executive Officer Rojas Manyame said as part of the review process leading to the approval of the tariff increase, the ECB analysed NamPower’s submission in accordance with the approval of the ECB Cost-Plus Tariff Methodology.

Manyame said NamPower made an application to the ECB in terms of Section 27 of the Electricity Act, (Act 4 of 2007), requesting for an effective bulk tariff of 21.29 per cent, an increase from N.dollars 1.03 to N.dollars 1.25 per kWh, to meet its service delivery costs and for the tariff to remain cost reflective.

He added that NamPower also reasoned that the proposed tariff increase makes provision for the year-on-year revenue requirement of NamPower, taking only actual costs and losses into account with no planned windfall gains for future investments, which is consistent with the cost-plus tariff methodology of Generation and Transmission set and approved by the Regulator.

Meanwhile, the ECB is expected to deliberate on the eventual increase to the consumers when the bulk suppliers such as municipalities and regional distributors apply for their annual increases from the electricity regulator.

SOURCE: NAMPA

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