Erongo RED pays out more than N$48 million in dividends

WALVIS BAY, The Erongo Regional Electricity Distributor, Erongo RED, has paid out royalties to the tune of N$48.3 million to its shareholding local authorities for the period July 2017 until April 2018.

The shareholders are Walvis Bay (57 percent) Swakopmund (22 percent), Henties Bay, Arandis and Karibib with 2 percent each, Usakos, Omaruru and Uis has one percent each.

Erongo RED was formed through the merging of the electricity distribution services of various municipalities and town councils in the Erongo Region, including the Erongo Regional Council and NamPower.

Each of these institutions remains shareholder and receives dividends on annual basis.

The creation of Red's model was an initiative of the Electricity Supply Industry (ESI) and Electricity Distribution Industry (EDI) restructuring policy and serves to stabilise electricity prices and ensure reasonable, affordable and cost reflective tariffs to electricity consumers by distributing and supplying electricity through economies of scale and the pooling of human and operational capital resources.

According to information availed on Friday, Walvis Bay Municipality received N$29 million, Swakopmund, N$13 million, Usakos N$1.04 million and Henties Bay N$1.9 million.

The Arandis Municipality received N$649 900, whereby Karibib Municipality received N$799 000, Omaruru N$931 000, and Uis N$170 800.

Erongo RED also spent millions to improve and upgrade electricity networks in the region, of which some of the projects are still on going. Such projects include the bulk upgrade of Arandis, Swakopmund and Sekelduin.

N$193 million will be spent on the Swakopmund bulk upgrade project which is expected to be completed by 2020.

Apart from that, they are also anticipating to spend about N$9 million on their rural electrification project that will see informal settlements such as Otjivaja, Upukos, Gai-//Naes as well as Utuseb receiving much needed electricity.

The utility so far has connected over 700 households in Tubusis, Anichab, Okombahe, Omatjete and Otjohorongo through its rural electrification project to the tune of N$12 million.

Source: New Era Newspaper Namibia