City wants 10.3% electricity hike
7% of household income already spent on power
If approved, electricity in the capital will increase from N$2.75 to N$3.03 per unit.
The City of Windhoek has proposed a 10.3% electricity tariff increase.
Electricity in the capital will increase from N$2.75 to N$3.03 per unit if the increase is approved.
The head of the City’s electricity department, O'Brien Hekandjo, announced this during a public presentation, the last in a series organised by the Electricity Control Board (ECB). The presentations, which have been taking place since May, were hosted in Katima Mulilo, Rundu, Oshakati, Ondangwa, Opuwo, Otjiwarongo, Swakopmund and Keetmanshoop.
The proposed rate hikes are now with the ECB for consideration, approval and authorisation. Windhoek residents have until Thursday, 13 June, to send written input to [email protected] before the board makes a decision by the end of this month, and the municipality announces and applies the new tariff on 1 July.
Sustainable manner
According to ECB’s executive for economic and market regulation Pinehas Mutota, Namibian households spend an average of 7% of their monthly income on electricity, compared to a global benchmark that more than 10% is unaffordable.
"Ultimately, we are looking for the cheapest electricity, but in a sustainable manner. We do not want islands of plenty in a sea of poverty," he said.
Hekandjo added that the municipality is committed to sustainability to improve residents' quality of life, and seeks this balance so as not to become a burden for the consumer.
Windhoek's electricity demand for its approximately 70 000 residents is the largest among NamPower's customers at 896 gigawatt hours (GWh), and peaks at 174 megawatts (MW), he said.
The capital also enjoys 39.5 MW supplied by solar purchases, although around 8.4% of electricity is lost in the local power grid.
More staff
According to Hekandjo, Windhoek's tariff is largely influenced by NamPower's tariff, which accounts for up to 78% of the cost for power purchases in the capital.
A small part of the proposed price increase is to pay for additional staff as the electricity department is understaffed, especially after the expansion of Windhoek's borders and services to Groot Aub, Brakwater and other surrounding places, he explained.
Overall, the municipality is trying to lower electricity costs by encouraging the use of renewable energy and facilitating the purchase of solar power on private rooftops, Hekandjo said.
Windhoek is in the process of awarding a tender for a new 25 MW solar power plant, he added.
With this, solar power will grow from less than 20% of the city’s demand to closer to the allowable 30%.
Mutota said the new solar power plant is a huge opportunity for the City, just as NamPower's new Otjikoto biomass power station may welcome cheaper renewable energy sources for Namibia.
"We will not allow new power stations to provide more expensive power," he said, taking into account the ECB's position that the power market in Namibia now allows distributors to buy power from sources other than NamPower, and promotes Namibian participation.
"At the end of the day, we also look forward to power from cheaper sources.”
– [email protected]
Electricity in the capital will increase from N$2.75 to N$3.03 per unit if the increase is approved.
The head of the City’s electricity department, O'Brien Hekandjo, announced this during a public presentation, the last in a series organised by the Electricity Control Board (ECB). The presentations, which have been taking place since May, were hosted in Katima Mulilo, Rundu, Oshakati, Ondangwa, Opuwo, Otjiwarongo, Swakopmund and Keetmanshoop.
The proposed rate hikes are now with the ECB for consideration, approval and authorisation. Windhoek residents have until Thursday, 13 June, to send written input to [email protected] before the board makes a decision by the end of this month, and the municipality announces and applies the new tariff on 1 July.
Sustainable manner
According to ECB’s executive for economic and market regulation Pinehas Mutota, Namibian households spend an average of 7% of their monthly income on electricity, compared to a global benchmark that more than 10% is unaffordable.
"Ultimately, we are looking for the cheapest electricity, but in a sustainable manner. We do not want islands of plenty in a sea of poverty," he said.
Hekandjo added that the municipality is committed to sustainability to improve residents' quality of life, and seeks this balance so as not to become a burden for the consumer.
Windhoek's electricity demand for its approximately 70 000 residents is the largest among NamPower's customers at 896 gigawatt hours (GWh), and peaks at 174 megawatts (MW), he said.
The capital also enjoys 39.5 MW supplied by solar purchases, although around 8.4% of electricity is lost in the local power grid.
More staff
According to Hekandjo, Windhoek's tariff is largely influenced by NamPower's tariff, which accounts for up to 78% of the cost for power purchases in the capital.
A small part of the proposed price increase is to pay for additional staff as the electricity department is understaffed, especially after the expansion of Windhoek's borders and services to Groot Aub, Brakwater and other surrounding places, he explained.
Overall, the municipality is trying to lower electricity costs by encouraging the use of renewable energy and facilitating the purchase of solar power on private rooftops, Hekandjo said.
Windhoek is in the process of awarding a tender for a new 25 MW solar power plant, he added.
With this, solar power will grow from less than 20% of the city’s demand to closer to the allowable 30%.
Mutota said the new solar power plant is a huge opportunity for the City, just as NamPower's new Otjikoto biomass power station may welcome cheaper renewable energy sources for Namibia.
"We will not allow new power stations to provide more expensive power," he said, taking into account the ECB's position that the power market in Namibia now allows distributors to buy power from sources other than NamPower, and promotes Namibian participation.
"At the end of the day, we also look forward to power from cheaper sources.”
– [email protected]
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