Erongo RED tariffs up by 9% for 2023/24 financial year
By Adolf Kaure.
The Erongo Regional Electricity Distributor (RED) recently announced a 9% tariff hike for the 2023/2024 financial year during a briefing at their head office in Walvis Bay.
According to Erongo RED executive manager for network operations and maintenance, Nico Niemand, the Electricity Control Board’s (ECB) announcement in May that NamPower’s average tariff would range from N$1.82 to N$2.12 per kilowatt hour for the 2023/2024 financial year had a bearing on the tariff hike.
“This constitutes a weighted average increase of 8.97%, however, the actual impact to Erongo RED is 9.9%.”
“In June, after engaging different stakeholders such as the board, shareholders and the consumer liaison committee, Erongo RED submitted an application to the Electricity Control Board for tariff adjustments for the 2023/2024 financial year.”
“Therefore, we want to inform all our customers that after reviewing our application for the tariff adjustment, the Electricity Control Board approved a weighted average of 9% tariff adjustment,” he said.
Niemand further said that the detailed tariff schedule will be placed in various newspapers, on the Erongo RED website as well as in the tariff booklet which can be obtained from Erongo RED offices.
“I wish to reiterate that although the approved weighted tariff is 9%, the impact on customers will vary depending on individual consumption patterns and the type of connection,” he said.
“It is worth mentioning that for every unit sold, about 70% goes to NamPower. Erongo RED uses the remaining 30% for its operations,” said Niemand.
These tariff increases are not unique to our region only. The bulk tariff increase will be applied country-wide.
PENSIONERS SUBSIDIZED:
Despite the increase, the company resolved to continue with the subsidized tariffs for pensioners and low-income members in the community.
“I want to once again appeal to our pensioners to please re-register again so that they continue to benefit from the subsidized tariffs,” the executive director said.
The purpose of the re-registration is to mitigate the risk of misuse of the scheme by those who are not supposed to be on the pensioner tariff.
Furthermore, community members who qualify for social tariffs have been urged to visit the nearest Erongo RED offices and apply.
Terms and conditions will apply to customers who wish to apply for social tariffs in line with Erongo RED’s social tariffs policy.
Niemand further said that when the Erongo RED were modelling its tariffs and preparing the submission to ECB for tariff adjustment, various factors were taken into account.
“The adjustments are necessary for the company to continue to provide services to consumers. Not adjusting the tariffs will compromise our service delivery to the customers,” he said.
These factors include the tariff adjustment by NamPower, the impact it will have on customers, concerns from the community, input from the consumer liaison committee, envisaged infrastructure development, electrification and operational cost.
The current economic situation and the impact of electricity costs on Erongo RED’s commercial and industrial customers, businesses, farmers, and residential consumers was also taken into account.
The adjusted tariffs are effective 1 July, except for prepaid tariff which became effective 6 July until 30 June 2024.
