By Staff Reporter
WINDHOEK, April 25 — Namibia’s state-owned electricity provider, NamPower, has requested an increase in tariffs of 16.87 percent due to significant challenges it faced in the previous fiscal year. The Electricity Control Board will consider the application by April 30 after a meeting held on March 31.
NamPower has a history of performing well, but recorded a loss of N$1.2 billion for the year ending June 30, 2022, compared to a profit of N$1.2 billion in 2021. The chairman of the board, Daniel Motinga, attributed this significant loss to a 14 percent increase in the cost of electricity generation, rising from N$4.5 billion to N$5.1 billion during the fiscal year.
Additionally, low rainfall in the Kunene River catchment area resulted in reduced generating capacity at the Ruacana plant. It generated only 781 gigawatt-hours, compared to 1,505 in the 2019-20 fiscal year, contributing to less than 20 percent of the total demand for electricity.
If granted, the tariff increase will add more pressure on consumers already struggling to make ends meet. Namibians are already grappling with high unemployment rates and rising inflation, and an increase in the cost of electricity will only exacerbate the situation.
While NamPower’s request for a tariff increase may be justifiable, the Electricity Control Board must also consider its impact on Namibians. The board must ensure that the tariff increase is reasonable and does not place an undue burden on consumers.
Namibians are calling on the government to find alternative solutions to address NamPower’s challenges. The government must invest in renewable energy sources to reduce the country’s dependence on fossil fuels and ensure a sustainable energy supply.
In conclusion, NamPower’s request for a tariff increase highlights the challenges faced by the electricity supplier. However, the Electricity Control Board must consider the impact on consumers and ensure that the tariff increase is reasonable. The government must also invest in renewable energy sources to address the country’s energy needs sustainably.
– Namibia Daily News