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Regulator adjusts bulk electricity tariffs by 5% for 2018/2019 financial period

Regulator adjusts bulk electricity tariffs by 5% for 2018/2019 financial period

The Electricity Control Board (ECB) this week announced that it approved a 5% bulk tariff increase for the period 2018/2019, effective 1 July, according to CEO, Foibe Namene.

Initially power utility company Nampower in accordance with the existing legal provisions had made a tariff application for an effective bulk tariff (inclusive of generation and transmission) increase of 6.56%.

Namene said in reviewing the tariff, the regulator considered a number of factors and consulted different stakeholders through a stakeholder meetings, at which Nampower made a presentation of its application.

According to Namene the tariff review from the ECB concluded that the approved 5% tariff increase would suffice for power utility firm Nampower to cover its allowed operating costs and cover the under recovery as per the reconciliation methodology and ultimately fulfill its financial obligations, including payments to the local Independent Power Producers and ensure a continued supply of electricity.

“The 5% tariff increase is below the projected inflation of approximately 5.3% for the period 2018/2019 and therefore it is foreseen that the impact of the increase on inflation will be at a minimum,” she added.

Namene said the tariff increase is applicable to Nampower bulk customers which are Regional Electricity Distributors (REDS), local authorities, regional councils and mines.

The tariff increase translates to an effective bulk tariff increase from N$1.61 to N$1.69 per kWh.

Meanwhile, for the stakeholders to better understand the distribution tariff structure at a national level and the relation to the cost of supply of each distribution utility, the ECB commenced a National Electricity Tariffs Study- Distribution Industry Project, which study is intended to assess the implementation of recommendation of the 2001 National Electricity Tariff study and to review the cost of supply of electricity by distributors.



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