Staff Reporter
Windhoek, November 29 – The Electricity Control Board (ECB) and the Ministry of Mines and Energy convened the Electricity Distribution Industry (EDI) Summit on 16-17 November 2023. Under the theme “Towards a reliable, sustainable, and efficient electricity distribution industry,” the event saw the participation of key stakeholders, including ministers, deputy ministers, ECB board members, representatives of EDI players, ratepayers, and consumer groups.
The primary objective of the summit was to assess the government’s policy on establishing the remaining Regional Electricity Distribution (RED) companies. It aimed to address shortcomings in the legal and regulatory framework, local authority surcharges, and the viability of these companies. The EDI Reform aligns with government policy, focusing on consolidating distribution licensees to enhance sector efficiency, ensure long-term network quality, and facilitate maintenance.
Operational REDs shared their experiences, and the Association for Local Authorities in Namibia (ALAN) presented its perspectives on the EDI Reform, particularly the envisioned REDs. NamPower outlined its role and strategic position regarding participation in the electricity distribution sector. International speakers provided insights into global experiences and EDI Reform approaches on the African continent.
Several challenges were highlighted during the summit, hindering the completion of the EDI Reform, including revenue loss for Local Authorities (LAs) and Regional Councils (RCs), funding gaps post the REDs’ establishment, lack of a legal framework, high tariffs, irregular distribution of dividends, low surcharges, tariff and surcharge harmonization issues, and low electrification rates.
While stakeholders generally supported completing the remaining REDs, interventions were deemed necessary before concluding the EDI Reform. Recommendations included financial impact assessments by LAs and RCs, increased subsidies from the Central Government, development of a regulatory framework by the ECB, assistance to struggling LAs and RCs on tariff methodology and Operational Risk Management (ORM) challenges, surcharge harmonization, implementation of the National Electrification Policy, a review of REDs’ shareholding structures, NamPower’s exit from the EDI focusing on generation and transmission, and the establishment of consumer liaison committees by all REDs.
In conclusion, the EDI Summit Report will be finalized and shared with stakeholders. Subsequently, the ECB will facilitate consultations with the government and stakeholders to determine the way forward for the planned EDI Reform.
