Electricity Tariffs Remain Exorbitant

The cost of electricity in the Erongo Region will not go down even if regional electricty distributors (REDs) were returned to the municipalities.

This is according to the Chief Executive Officer of Erongo Red, Robert Kahimise, who says not only Erongo but the country at large has reached a stage where electricity cannot simply become cheaper.

He was briefing the media on Friday morning at Walvis Bay on Erongo Red’s tariffs increase for the 20142015 financial year.

He said the electricity distributor will pass on an average tariff increase of 10,2 per cent to its customers.

The tariffs will be adjusted on 1 July.

Kahimise said the increase was necessitated to ensure cost reflectivity and also to recoup N$28 million for the ongoing Walvis Bay bulk upgrade.

“As per our board directive, we have looked into possible ways to make electricity affordable for all. I am glad to say that we have put measures in place to cushion the impact of electricity increase on our customers especially pensioners and the low income segment in our communities. At this stage registered pensioners and low income segments on the 30 amps breaker size have enjoyed cheaper electricity tariffs at N$1,20 per kilowatt. We have also installed prepaid meters to this segment of our customers at no cost,” he said.

He said residents should consider that the national power utility NamPower had increased its tariffs by 13,22 percent for the 20142015 financial year.

“However the real impact on Erongo is about 15 percent. Please bear in mind that the electricity industry in Namibia is fully regulated, therefore Erongo Red also operates within that framework,” he explained.

Source : New Era