MSB expected to change electricity industry: Nambahu

The Modified Single Buyer (MSB) Model as approved by Cabinet and implemented is expected to bring change to the electricity industry to prevent the emergence of disruptive technologies such a rooftop solars.

This was according to Chairperson of the Board of Directors of Erongo Red Zoe Nambahu, during the opening of the Erongo Red stakeholders' summit here on Tuesday.

According to Nambahu, the main change to the current Single Buyer model is that the MSB will allow first transmission electricity consumers and Independent Power Producers (IPPs) to transact with each other directly for the supply of electricity.

Transmission customers will therefore now be able to buy a portion (up to 30 percent) of their energy requirements directly from a private generator.

The second phase allows for distributed customers with larger than one MegaWatt capacity to also become contestable customers. Therefore, the MSB can either provide new opportunities or threats for the company, Nambahu added.

The three-day summit is a platform where Erongo Red's shareholders and members of the board of directors will discuss very pertinent matters relating to the company.

The meeting will also deliberate on crucial matters such as how shares are determined, the dividend policy, the issue on how the royalties are calculated as well as the issue on the appointment of the directors and term of office.

The chairperson congratulated the electricity company for managing to achieve a healthy financial position, despite slow economic activities in the country over the last two years.

Erongo Red has established itself as one of the leading distributors in Namibia especially in terms of operational capacity, its scope of operations, has ensured it remains financially sustainability and continuous to have an impact on the improvement of livelihood as well as the sphere of influence on the economic growth of the region.

The event is expected to conclude on Thursday with the launch of a new strategic plan which is aimed at ensuring that the company is geared for new changes in the industry.

Source: Namibia Press Agency