Namibian Regulator Approves NamPower’s Bulk Tariff Increase

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Chief executive of the Electricity Control Board, Foibe Namene, has confirmed the approval of NamPower’s submission for an 8% bulk tariff increase, the Economist reported.

Namene said the increase translates to an effective bulk tariff increase from N$1.49 ($0.110) to N$1.61 ($0.119) per kilowatt hour (kWh).

She explained that in accordance with the existing legal provisions, NamPower made an application for the tariff review.

“In its application NamPower requested for an effective bulk tariff increase with three options of 5.38%, 10.08% and 22.40% for the financial period 2017/18, an increase from N$1.49 to N$1.56 ($0.115), N$1.64 ($0.122) and N$1.83 ($0.136) per kWh respectively,” Namene said.

“The increase is applicable to NamPower bulk customers, which are Regional Electricity Distributors (REDS), Local Authorities, Regional Councils and mines,” she explained.

Optimum bulk tariff increase

Namene said that the ECB considers the 8% tariff increase to be the optimum increase for NamPower and the bulk tier customers, media reported.

“Should the increase be lower than 8% it means that a large portion of the under-recovery will be deferred to the following year, which will be a burden on the future tariff adjustments,” she said.

Taking into consideration the stable electricity supply, the regulator is confident that the tariff increase will stabilise in the short to medium term, media stated

Renewable energy projects

With regards to future plans, Namene said the country, by the end of 2018, will have a total of 184MW of renewable energy, which will make up 27% of the total installed capacity for the country.

“To date, Namibia has commissioned power plants with a total capacity of 30MW from Independent Power Producers (IPPs). We are expecting an additional 58MW for a total capacity of 83MW of renewable energy of which 70MW is part of the Interim Renewable Energy Feed in Tariff (RETIF) programme.

“Commissioning of the remaining 55MW of the REFIT programme is expected in the next six months,” she said.

Furthermore, Namene explained that an additional 101MW is expected to be commissioned in the next 18 months comprising the Hardap Solar PV tender (37MW) and three unsolicited projects (64MW).

Source: ESI-Africa

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