Africa-Press – Namibia. CUSTOMERS of Northern Regional Electricity Distributor (NORED) are not happy with the 3.3% tariff increment, saying the increase is for NORED to increase their salaries only.
The increment came into effect on 01 February this year, after the Electricity Control Board (ECB) as the regulator of the electricity pricing in Namibia adjusted an average electricity tariff by 3.3% for the Financial Year 2021/2022.
The customers indicated that Namibia is experiencing an economic downturn as it is everywhere else in the world and could not afford the 3.3% increment. NORED spokesperson Simon Lukas said claims that the tariff increment will result in salaries increment is pure distortion of the fact.
Lukas said the price of electricity in the country is regulated by the ECB. The ECB conducts annual electricity tariff reviews to ensure utilities charge appropriate tariffs to collect enough revenue to enable reliable and efficient operations at affordable rates.
“NORED is fully aware of the current economic situation and the impact of electricity cost on our customers. However, the tariff adjustment is granted to ensure a continued supply and distribution of a reliable, affordable, and high quality of electricity supply to its customers during these challenging times,” he said.
He explained that before they submit their annual tariff application for increment to the ECB, NORED considers various factors such as the tariff adjustment by NamPower, the impact it will have on customers, concerns from the community and stakeholders, envisaged infrastructure development, electrifications and operational cost, among others.
On 01 July 2021, the ECB had announced that NamPower’s bulk electricity tariff would increase by 2.92% for the 2021/ 2022 Financial Year. As a result, NORED submitted an application to the ECB and after a thorough review of the submission the ECB adjusted their average electricity tariffs by 3.3% for the 2021/22 Financial Year effective 01 February 2022.
“However, in this financial year, we have specifically taken into account the current economic situation and the impact of electricity cost on our customers, as well as the impact of Covid-19 on industries, businesses and residential consumers,” Lukas said.
Lukas said they are aware of the economic situation and the impact of the pandemic on households and customers and for that reason, NORED did not increase its tariffs for the past two financial years. TARIFF increment: Nored announces 3.3% tariff increment. Photo from Nored Facebook page
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