City of Windhoek seeks 10.4% electricity tariff hike

The City of Windhoek has submitted a tariff proposal of 10.4% average increase in electricity to the Electricity Control Board (ECB) for the 2024/25 financial year. This announcement was made during a tariff review presentation organized by the ECB in Windhoek today.

City of Windhoek’s Strategic Executive for Electricity, O’Brien Hekandjo, stated that the proposed tariff increase is primarily driven by NamPower’s recent adjustment. NamPower, the primary electricity supplier to the City of Windhoek, has raised its bulk electricity average tariff by 8.9% for the same period.

The proposed tariff adjustment by the City of Windhoek will result in an average increase of N$3.03 per kWh from the current N$2.75 per kilowatt hour (kWh). Despite this proposed increase, the City of Windhoek’s rates remain lower compared to other licensees in the market. Notably, charges from NamPower constitute 78% of the City’s total electricity expenditure, with additional costs arising from operations, maintenance, infrastructure depreciation, and employee costs.

ECB executive for Economic and Market Regulations, Pinehas Mutota explained that the Regulator reviews tariff adjustment applications based on sound economic principles, noting that the profit margins for distributors are capped at 6%.

In addition, Hekandjo disclosed that the City of Windhoek is in the process of constructing a 25 MW solar power plant, which aims to reduce the cost of energy to consumers.

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