Nored shows mercy to pensioners, sets sights on businesses
In an application for new tariffs, Nored has announced a planned reduction of electricity costs for pensioners, while residential and business tariffs are set to increase.
For pensioners, the cost of electricity will decrease by 5.4%, while homeowners and business owners can expect to cough up between 7.7 and 10.3% more.
Currently, N$100 buys you 38.9 units for residential properties, but if Nored’s application is approved by the Electricity Control Board (ECB), the number of units will decrease to 36.10.
Small- to medium-sized businesses such as bars, which fall under the general category, will see their electricity tariff increase by 8.4%. Big businesses and institutions such as green schemes, which fall under the institutional demand category, will see their tariffs increase by 8%, and institutions in the special flat category will pay 10.3% more.
The average tariff increase, as per Nored’s application, stands at 7.7%.
Poorly attended
The northern electricity distributor has been hosting a series of stakeholder engagements, the latest of which took place in Ondangwa on Monday. Two similar events were held in Katima Mulilo and Rundu last week. This comes just weeks after NamPower announced an 8% tariff increase.
Monday’s engagement at Ondangwa Airport Hotel was poorly attended, with Nored and ECB officials outnumbering the members of the public in attendance.
Speaking at the event, Nored acting CEO Toivo Shovaleka explained why there is a need for tariff adjustments, adding that Nored only collects 30% from the sale of electricity.
With the ECB having approved NamPower’s tariff hike, he said it forces electricity distributing companies to adjust their own tariffs.
Shovaleka further noted that their tariff hike application - with an average increase of 7.7% - is lower than NamPower’s 8%, which means Nored stands to make a loss of N$2.5 million in the 2024/2025 financial year.
‘Only 30%’
According to him, the notion that distributors are to blame for the high costs of electricity is wrong, adding that even if Nored is replaced, that company will still be subjected to the process Nored prescribes to.
“I would like you to know that as distributors, including Nored, we only account for 30% of the end-user tariff. Now, often when you hear people talking about these rates, [they say the] middlemen are making electricity expensive. [This is] not entirely correct. If you replace Nored and you put another distributor there, the fact remains the same,” Shovaleka explained.
“It's very important to take note of the fact that we only [get] 30%. The whole 70%, that cost is elsewhere,” he said. “There is a significant increase in operation and maintenance costs, as well as safety.”
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For pensioners, the cost of electricity will decrease by 5.4%, while homeowners and business owners can expect to cough up between 7.7 and 10.3% more.
Currently, N$100 buys you 38.9 units for residential properties, but if Nored’s application is approved by the Electricity Control Board (ECB), the number of units will decrease to 36.10.
Small- to medium-sized businesses such as bars, which fall under the general category, will see their electricity tariff increase by 8.4%. Big businesses and institutions such as green schemes, which fall under the institutional demand category, will see their tariffs increase by 8%, and institutions in the special flat category will pay 10.3% more.
The average tariff increase, as per Nored’s application, stands at 7.7%.
Poorly attended
The northern electricity distributor has been hosting a series of stakeholder engagements, the latest of which took place in Ondangwa on Monday. Two similar events were held in Katima Mulilo and Rundu last week. This comes just weeks after NamPower announced an 8% tariff increase.
Monday’s engagement at Ondangwa Airport Hotel was poorly attended, with Nored and ECB officials outnumbering the members of the public in attendance.
Speaking at the event, Nored acting CEO Toivo Shovaleka explained why there is a need for tariff adjustments, adding that Nored only collects 30% from the sale of electricity.
With the ECB having approved NamPower’s tariff hike, he said it forces electricity distributing companies to adjust their own tariffs.
Shovaleka further noted that their tariff hike application - with an average increase of 7.7% - is lower than NamPower’s 8%, which means Nored stands to make a loss of N$2.5 million in the 2024/2025 financial year.
‘Only 30%’
According to him, the notion that distributors are to blame for the high costs of electricity is wrong, adding that even if Nored is replaced, that company will still be subjected to the process Nored prescribes to.
“I would like you to know that as distributors, including Nored, we only account for 30% of the end-user tariff. Now, often when you hear people talking about these rates, [they say the] middlemen are making electricity expensive. [This is] not entirely correct. If you replace Nored and you put another distributor there, the fact remains the same,” Shovaleka explained.
“It's very important to take note of the fact that we only [get] 30%. The whole 70%, that cost is elsewhere,” he said. “There is a significant increase in operation and maintenance costs, as well as safety.”
[email protected]
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