ECB records 8.4 per cent revenue increase

The Electricity Control Board (ECB) recorded an increase in revenue of 8.4 per cent, from N.dollars 89.4 million recorded in the 2018/19 financial year to N.dollars 93.7 million in the 2019/20 financial year.

The ECB’s 2019/20 annual report, which was recently released, indicates that its main source of revenue is levy income. The levies received are charged on volumes of electricity supplied by NamPower and licensed embedded or isolated generators.

“The ECB levy rate per kWh increased by 4.2 per cent effective 01 July 2019, whereas the actual volumes of electricity supplied decreased by 2.3 per cent compared to the previous financial period. This resulted in an overall increase in levy income of 2.6 per cent,” it reads.

The reduction in electricity units sold is mainly due to an increase in the generation of electricity for own consumption, such as solar rooftops. Another contributing factor to the decrease in units sold is the prevailing decrease in economic activities, which resulted in a decrease in electricity consumption by large power users such as mines.

Other income for the period under review was derived mainly from interest received, licence fees and rentals earned on the former ECB office building.

“Operational costs increased from N.dollars 62.8 million to N.dollars 67.5 million which translates to an increase of 7.5 per cent from the previous to the current financial year, mainly due to inflation. The underspending for the financial year under review is mainly as a result of prudent financial management and some activities that could not be actioned as planned due to the transformation into the Namibia Energy Regulatory Authority,” the report reads.

The project expenditure for the period under review decreased by 29.7 per cent when compared to the previous financial year. This decrease as well as the budget under-expenditure is attributed to various factors, such as project dependency on external factors and additions to the initial scope leading to project delays.

However, mitigation against under-expenditure in future could be addressed through planning reviews, budgeting and efficient project execution, ECB added.

Source: Namibia Press Agency