The Electricity Control Board (ECB) has increased the average bulk tariff by 7.30 per cent, from the currently approved tariff of N.dollars 1.6982 per kilowatt-hour to N.dollars 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 per cent in 2021/2022.

According to a media release issued by the ECB on Thursday, the approved tariff is applicable to NamPower bulk customers such as the Regional Electricity Distributors (REDs), local authorities, regional councils and mines and is effective from 01 July 2022.

NamPower bulk customers will then individually apply to the ECB for a review of their distribution tariffs, which will be applicable to end consumers when approved.

‘As part of the discussions with the Minister of Mines and Energy, the ministry availed N.dollars 100 million through the National Energy Fund (NEF), to mitigate the impact of the increase on consumers. The allocated funds will be used for energy-related variable costs of NamPower in consultation with the ECB,” the statement noted.

Annual electricity tariff reviews are conducted to ensure that utilities charge appropriate tariffs to collect enough revenue to provide reliable and efficient services at affordable cost-effective rates, it read, noting that 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,” it said.

Source: The Namibian Press Agency