WINDHOEK, July 20 (Xinhua) -- Namibia's Electricity Control Board (ECB) on Monday approved a moderated 3.7-percent increase in the country's bulk electricity tariff, well below the 8.4 percent sought by the national power utility NamPower.
Speaking at a media briefing in Windhoek, ECB Chief Executive Officer Robert Kahimise said the regulator had initially reduced NamPower's proposed increase to 4.8 percent following its assessment of the application.
"Following engagements with the minister of industries, mines and energy, and through a combined relief allocation of 90 million Namibian dollars (about 5.5 million U.S. dollars), comprising 50 million Namibian dollars from the Long Run Marginal Cost Fund and 40 million Namibian dollars from the National Energy Fund, the increase was further reduced to 3.7 percent, which is the increase to be passed on to customers," he said.
The average bulk tariff will rise from 2.06 Namibian dollars per kilowatt-hour (kWh) to 2.14 Namibian dollars per kWh, effective Aug. 1, according to Kahimise.
"As the costs associated with the generation, transmission and distribution of electricity change over time, tariffs must be reviewed regularly to maintain predictability, availability and stability in the market," he said.
The ECB said the approved tariff applies to NamPower's bulk customers, including regional electricity distributors, local authorities, regional councils and large industrial customers directly connected to the transmission network, such as mines. ■