Erongo RED sheds light on tariff increases

Over the last year, N$23 million was spent on subsidising 19 000 customers in the region.

17 September 2018 | Energy

Fessor Mbango, Erongo RED CEO; “Erongo RED had good intentions when it started the subsidy in 2012 but some misused the scheme.”

Otis Finck



Erongo RED CEO Fessor Mbango rubbished claims that the regional power utility provider has increased electricity tariffs by 40%.

He also expressed regret for the inconvenience customers may have experienced as a result of the discontinuation of the subsidised electricity on 30 Amps connection.

Mbango said Erongo RED was closely following misinformation being circulated on social media about recent tariff increases and explained that the regional electricity distributor announced a weighted tariff increase of 4% as approved by the Electricity Control Board (ECB) in July.

“This 4% average increase is a weighted average of different tariff categories and therefore the impact on customers will vary according to the tariff category on which they are connected and their consumption pattern.”

He added that Erongo RED also communicated at the same event that customers who were previously on the subsidised tariffs (up to 30 Amp) will notice a reduction in units.

“This means that until June 2018 one would have received 61.8 units on subsidised tariffs for N$100. Effective 13 July 2018, the subsidy is no longer applicable in this category. Therefore customers who are currently on above 20 Amps will only get 42.6 units for N$100. The reason for such reduction in units is mainly due to the discontinuation of the subsidy on this category and not the tariff increase.

“All registered pensioners and those receiving disability grants are not affected by the limitation on subsidised tariffs and will continue to be subsidised up to 40 Amp connection.”

Mbango said Erongo RED spent approximately N$23 million on subsidising 19 000 customers which account for 48% of active customers between July 2017 and June 2018.

“This money could have been used for electrification projects but we resolved to pump it towards the community. We spent more than N$88 million on assisting pensioners and low income customers to have access to electricity through lower tariffs.”

He explained that the aim of the subsidised tariffs is to provide relief to pensioners and low income earners.

“Erongo RED had good intentions when it started the subsidy in 2012 but some misused the scheme. We noticed a steep increase in the number of customers on the subsidised tariffs over the past two years. This was due to an estimated 13 000 (well-off) customers who are not supposed to be on subsidised tariffs. Well-off persons draw a lot of electricity due to the appliances they use.

“We will continue to provide subsidised electricity on the 20 Amp connection and customers not able to afford electricity rates on 30 Amp are advised to move to 20 Amps.”

Mbango said that for every unit cost, up to 70% goes towards purchasing electricity from NamPower. Hence, Erongo RED has about 30% of revenue collected to finance its operations, maintenance, electrification, remunerations, subsidies, bulk upgrade projects and royalties to share holders.

He reiterated that Erongo RED was still committed to diversify its energy mix in order to ensure that electricity consumers reap benefits emanating from renewable energy.

“We announced a moratorium early this year on renewable energy to allow Erongo RED to conduct and impact assessment study on penetration of renewable energy.

“The aim of the exercise was to analyse the impact of renewable energy grid integration and ultimately determine the acceptable levels of renewable energy at various points of Erongo RED’s network. The study is almost done and a public announcement on the way forward will be made soon.”

Similar News

 

Group calls for reduced electricity tariffs

1 month - 11 August 2019 | Energy

Walvis Bay - Otis Finck Residents staged a peaceful protest against high electricity tariffs in Walvis Bay. The Walvis Bay Concerned Group (WBCG)...

Price of electricity remains unchanged

1 month - 06 August 2019 | Energy

Walvis Bay • Leandrea Louw Erongo RED announced that the electricity price will remain unchanged until next year July. According to the regional electricity...

Oil refinery in the pipeline for harbour town ...

2 months ago - 07 July 2019 | Energy

Walvis Bay • Otis Finck Clasox Petroleum has applied to acquire 10 ha of land behind Dune 7 at Farm 58 for...

Residents urged to attend public meetings

3 months ago - 02 June 2019 | Energy

Walvis Bay - Leandrea Louw Erongo RED will host public meetings to discuss proposed electricity tariffs, ongoing projects and electricity related matters. The first...

Galp starts Namibia offshore seismic acquisition

7 months ago - 28 January 2019 | Energy

Galp, a publicly held, Portuguese-based energy company with an international presence, will start a 3D seismic campaign in Namibia’s Deepwater Offshore License PEL83 in the...

Going solar at home: The basics

11 months ago - 01 October 2018 | Energy

Solar-powered homes were a rarity a decade ago, but increasing electricity costs and worries about climate change, have made them commonplace.So, why use solar panels?...

Mega power generation in the pipeline

1 year - 27 August 2018 | Energy

Frank Steffen The subcontinent’s power supply was one of the matters discussed during the recent Southern African Development Community (SADC) summit held in Windhoek,In...

Electricity supply: Liberalisation essential

1 year - 23 August 2018 | Energy

Otis Finck “The protection of territories by power utilities like NamPower and Erongo RED is a challenge,” Erongo governor Cleophas Mutjavikua told delegates at the...

REDs question NamPower partnership

1 year - 20 August 2018 | Energy

Otis FinckRegional electricity distributors (REDs) strongly believe that NamPower should focus on generation and transmission, and the REDs should focus on distribution. Fessor Mbango, the...

IPPs needed to boost energy supply

1 year - 20 August 2018 | Energy

Otis FinckThe electricity supply industry will have to evolve and change as a whole. Reforms should be continued with a view to encourage more private...

Latest News

Celebrating Namibia

11 hours ago | Cultural

Swakopmund · Iréne-Mari van der WaltThe Scientific Society Swakopmund (SSS) kicked-off their Heritage Week celebrations on Monday, 16 September with the Namib Marimbas at 10:00....

All Namport STS cranes simultaneously...

12 hours ago | Infrastructure

Walvis Bay The four brand new Ship-to-Shore (STS) cranes were for the first time since the commissioning of the New Container Terminal simultaneously operational...

O&L Leisure and TAWUN signs...

20 hours ago | Business

Under the agreement wage agreement reached with the Tourism and Allied Workers Union of Namibia last week, O&L Leisure (a subsidiary of the Ohlthaver...

Take pride in the environment...

20 hours ago | Local News

Walvis Bay • Leandrea Louw The national clean-up campaign is slated for 21 September this year and Walvis Bay mayor, Alderman Immanuel Wilfred, is...

Swakopmund Youth League kicks off

1 day - 18 September 2019 | Sports

Swakopmund • Iréne-Mari van der Walt The Swakopmund Youth League concludes at the end of this month after another two rounds of six matches...

Village councils under scrutiny

1 day - 18 September 2019 | Government

Swakopmund • Adolf Kaure A four-day stakeholder briefing for village councils hosted by the Office of the Auditor-General began in Swakopmund on Monday, with...

Bewustheid oor brandbekamping verskerp

1 day - 18 September 2019 | Local News

Swakopmund • Iréne-Mari van der Walt Die munisipaliteit van Swakopmund het onlangs ’n praatjie oor brandveiligheid by die DRC sportveld gehou.Die geleentheid...

Klein mejuffrou Walvisbaai

3 days ago - 17 September 2019 | Events

Tien deelnemers ding mee in die eerste Little Miss Walvis Bay-skoonheidskompetisie. Hierdie kompetisie is die geesteskind van Estrolita Petersen, Mev. Namibia Globe en Mev. Universal....

Prokureurs span saam teen geslagsgeweld

3 days ago - 17 September 2019 | Local News

Swakopmund • Otis Finck 'n Regspraktisynsfirma op Swakopmund, Ellis Shilengudwa Incorporated (ESI), in samewerking met die Lindi Prinsloo Trust, die Janet Martin-liefdadigheidsorganisasie en die vroueregte­aktivis...

Load More