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 Effective 13 July 2018, the subsidy is no longer applicable in this category.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


Diesel price adjustment a welcome relief

3 weeks ago - 02 October 2020 | Energy

Swakopmund • [email protected] secretary general of the Namibia Transport and Taxi Union (NTTU), Werner Januarie, welcomed the adjustment in diesel fuel pump prices “It...

Fuel prices up again

1 month - 02 September 2020 | Energy

Fuel prices have been increased for the month of September in light of the economic plummet accompanying the Covid-19 pandemic, the ministry of mines and...

No electricity tariff increases for Erongo

2 months ago - 04 August 2020 | Energy

Walvis Bay Erongo RED announced a weighted average tariff adjustment of -1.6% in compliance with approval from the Electricity Control Board (ECB). This is...

Filling up to cost more

2 months ago - 03 August 2020 | Energy

Fuel pump prices will increase countrywide at midnight on Wednesday (5 August), with the price of petrol increasing by 100 cents per litre and the...

Fuel prices remain unchanged for July

3 months ago - 30 June 2020 | Energy

Fuel pump prices in Walvis Bay (port of entry) will remain N$10.35 per litre for Petrol and N$11.13 per litre for Diesel respectively the minister...

Dundee Precious Metals Tsumeb reaffirms support to the Tsumeb...

6 months ago - 09 April 2020 | Energy

Dundee Precious Metals Tsumeb reaffirmed its support to the Tsumeb community by improving the preparedness levels of the Tsumeb District hospital should the COVID-19 virus...

Erongo RED donates N$1 million

6 months ago - 07 April 2020 | Energy

Walvis Bay • [email protected] Erongo RED has availed N$1 million to the Covid-19 pandemic fight within the region. Chief executive Fessor Mbango said that N$200...

Fuel prices unchanged

10 months ago - 04 December 2019 | Energy

Fuel pump prices in Walvis Bay for 95 Octane Unleaded Petrol amount to N$ 13.05 per liter and that of Diesel 50 ppm is N$...

N$120 miljoen. se

1 year - 15 October 2019 | Energy

Arandis • Adolf KaureVisepresident Nangolo Mbumba het onlangs Sertum Ener­gy Namibia se N$120 miljoen-sonkragaanleg by Orano se Trekkopje-myn ingewy. Die 5 megawatt- fotovoltaïese aanleg lê...

Son gee myn krag

1 year - 01 October 2019 | Energy

Arandis · Otis Finck Sertum Energy Namibia gaan Donderdag sy nuut geboude Trekkopje-sonkragaanleg amptelik in gebruik neem. Die visepresident van die Republiek van...

Latest News

Erongo records three new Covid-19...

3 hours ago | Health

The health minister Kalumbi Shangula announced 77 new Covid-19 cases and 51 recoveries on Wednesday afternoon. He said that 1 115 results were received from...

Old guard must go and...

3 hours ago | Politics

Windhoek · [email protected] Bay Urban constituency councillor Knowledge Ipinge, who is vying to retain his seat in the upcoming local and regional authority elections, says...

Rugby Africa concludes solidarity campaign

3 hours ago | Sports

Rugby Africa announced the immediate release of €170 000 from a solidarity fund for its member unions earlier this year. The Rugby Africa Executive Committee...

Breek weg na Omaruru

3 hours ago | Events

Omaruru • [email protected] die ekonomie aan die kus weer op die been is te danke aan ’n toestroming van binnelandse besoekers, moet inwoners en besighede...

NaTIS arrives in Arandis

1 day - 27 October 2020 | Infrastructure

Arandis The deputy minister of Works and Transport Veikko Nekundi officially opened a NaTIS office in Arandis today. Nekundi said that the realisation...

Six new Covid cases for...

1 day - 27 October 2020 | Health

The minister of health and social services Dr Kalumbi Shangula announced 54 new Covid positive cases and 65 recoveries. Shangula explained that 531 Covid-19...

Law enforcement officers ready for...

1 day - 27 October 2020 | Sports

Walvis Bay The Erongo Law Enforcement Sports Association (ELESA) host the 5th edition of the Law Enforcement Sports Tournament at Jan Wilken Sports...

Swierige matriekafskeid

1 day - 27 October 2020 | Events

Hoërskool Duneside se matriekafskeid het Saterdag by die Hotel Atlantic op die hawedorp plaasgevind. Veertien matrikulante het die geleentheid met die tema “MET Gala” bygewoon...

Pophuis bou is nie speletjies

1 day - 27 October 2020 | Local News

Swakopmund • [email protected]'n Inwoner van Swakopmund het tydens 'n finansiële verknorsing as 'n toevlug hom na die maak van pophuise gewend. Koster Cronje sê hy...

Load More