Namibia: Electricity Regulator Announces Approved End-Consumer Electricity Tariffs

The Electricity Control Board (ECB) has announced the approved end-consumer electricity tariffs, effective from 1 July 2025 to 30 June 2026. Robert Kahimise, the Chief Executive of the ECB, made the announcement last week.

This follows the bulk electricity tariff announcement made in May, which mandated all distribution licensees to individually submit applications to the ECB for a review of their respective distribution tariffs.

Kahimise confirmed that the ECB facilitated public consultations as part of this process. During these consultations, all major electricity distribution utilities presented their tariff applications directly to consumers within their designated service areas, ensuring transparency and public engagement in the tariff-setting process.

During these consultations, consumers raised several concerns, including high operating costs, continuous tariff increases, increased procurement from Independent Power Producers (IPPs), and long-term plans to reduce reliance on costly imports.

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Consumers also requested clarity on cross-subsidies between business, residential, and rural consumers; social tariffs for pensioners and low-income households were highlighted; and concerns about delays in electrification in townships and rural areas were raised. Limited engagement with licensees and slow service rollout were also noted.

Kahimise reassured consumers that their inputs were considered in the final distribution tariffs. He encouraged electricity consumers to actively participate in next year's distribution tariffs public consultations, emphasising their influence on the outcome of the final tariff.

NamPower Distribution applied for 3.02% and 1.7% was approved, CENORED applied for 5.8% and 3.8% was approved, CENORED Omaheke applied for 1.5% and 0.75% was approved, Oshakati Premier Electric (OPE) applied for 4.19% and 3.5% was approved, and Erongo RED applied for 3.7% and 3.7% was approved.

However, Kahimise noted that NORED and the City of Windhoek's schedule of tariffs remain pending until they comply with ECB conditions. NORED applied for a 7.4% increase with 4% approved, but must submit audited financial statements for the 2022/2023 financial period, obtain auditors' commitment to finalise 2023/2024 audited financial statements, and submit power quality reports.

Meanwhile, the City of Windhoek applied for 4% increase, with 3.9% approved, but needs to submit Operating and Reporting Manual Financial Statements for the 2023/2024 period, provide a detailed report othe n the Electricity Business Unit's ring-fencing status, and submit power quality.

Furthermore, the debt owed to NamPower by local authorities and regional councils is increasing at an average of N$10 million per month. According to Kahimise, the Rehoboth Town Council's debt is growing by about N$1.2 million per month due to interest charges, as only 10% of the prepaid amount is being applied to the debt.

The ECB Board has recommended that NamPower consider stopping interest charges on arrears for local authorities that are making good-faith efforts to repay their debts. NORED continues to honour its repayment agreement, with arrears standing at N$38.5 million as of 8 May 2025.

Kahimise also announced that the Anixas and Khan plants have been completed, but the CERIM project, however, experienced delays due to land rights issues. The Rosh Pinah solar PV plant is expected to be commissioned in the second quarter of 2026, while the Otjikoto biomass plant is scheduled for the second quarter of 2027, and NamPower's Battery Energy Storage System (BESS) is set to come online in the fourth quarter of 2025.

He emphasised that these plants will enhance Namibia's security of electricity supply and reduce the country's dependence on expensive electricity imports.

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