Brigitte Weidlich
15 April 2008
Windhoek — Today is crunch time for the country's electricity sector: the Electricity Control Board (ECB) and NamPower will jointly announce new power tariff increases.
The power hikes come at a time when the region is grappling with a power crisis sparked by diminishing electricity supply in South Africa, where tariffs might increase by a whopping 63 per cent by June. About half of Namibia's electricity needs are imported from South Africa. Namibia's electricity consumers must brace themselves for stiff electricity hikes. Many have voted overwhelmingly in favour of higher tariffs and are against load shedding, according to the preliminary results of a week-long survey conducted by the ECB, which ended on Friday.
Some 71,8 per cent of consumers opted for price increases and only 28,2 per cent for load shedding, results posted on the ECB website revealed yesterday. The ECB conducted a survey per SMS - the first time ever that consumers' opinions were asked. South Africa's power utility Eskom last month applied to the National Energy Regulator of South Africa (Nersa) for a revision of the already approved 14,2 per cent increase electricity price for 2008-09 to a 60 per cent increase backdated to April 1.
Eskom's application said if the high coal and oil prices and other operating costs remained, it would have to request a price increase for 2009-10 that will be almost 100 per cent. Alternatively, Eskom wants a 53 per cent price increase for 2008-09 and 43 per cent for 2009-10. The Eskom application seeks the full primary energy cost increases to be recovered from to the customer. Eskom also embarked on a building programme for new power stations that will cost R343 billion over the next five years to address the supply shortage. Eskom informed Nersa that it was budgeting for a loss of R7,9 billion before tax should the regulator stick to the 14,2 per cent price increase.
Nersa will decide on June 6. The ECB will hold a joint press conference with NamPower today to announce the higher tariffs and to shed light on the present electricity crisis.
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