Pensioners in the Erongo Region have been urged to re-register in order to continue benefiting from ErongoRED’s subsidised tariffs, following the recent 9.9 per cent tariff adjustment on electricity.
ErongoRED Acting Chief Executive Officer (CEO), Nico Niemand at a media conference in Walvis Bay on Thursday noted that the re-registration by pensioners will also mitigate the risk of misuse of the scheme by those who are not supposed to be on the pensioner tariff.
In May 2023, the Electricity Control Board (ECB) announced NamPower’s average tariff increase from N.dollars 1.82 to N.dollars 2.12 per kilowatt hour for the 2023/2024 financial year, which constitutes a weighted average increase of 8.97 per cent, however, the actual impact to ErongoRED is 9.9 per cent.
“Despite the increase, we had to look for all possible ways to cushion the impact on our customers whilst ensuring that service delivery is not compromised. Thus, the company has resolved to continue with the subsidised tariffs for pensioners and low- income members in our community,” Niemand noted.
He further reiterated that although the approved weighted tariff is 9.9 per cent, the impact on customers will vary depending on individual consumer consumption patterns and the type of connection, emphasising that for every unit sold, about 70 per cent goes to NamPower, while ErongoRED uses the remaining 30 per cent for its operations.
With regard to the statutory levies, the ECB Levy will remain unchanged for a period of 12 months starting 01 July 2023. Similarly, the NEF Levy for 2023/2024 will remain unchanged, pending further direction from the Ministry of Mines and Energy.
Niemand stressed that EronogRED has considered all possible ways to ensure that it passes on the most reasonable tariff adjustments to the customers, whilst ensuring the sustainability of the company.
“As part of our efforts to cushion the impact on the consumers, we intend to reduce our expenditure as well as put some of our projects on hold. We are also in the process of exploring alternative sources of cheaper electricity.”
Source: The Namibian Press Agency