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Establishment of southern RED imminent

2024-02-09  Maihapa Ndjavera

Establishment of southern RED imminent

The establishment of a regional electricity distributor (RED) for southern Namibia is well underway. This is according to Gottlieb Hinda, board chairman of the Electricity Control Board (ECB). 

“The advanced stage follows the approval of the shareholder’s agreement by the attorney general. Consultations regarding establishing a southern RED are ongoing, with discussions surrounding the modalities, considering the latest developments in the industry,” Hinda stated in the ECB’s 2023 annual report.  

The ECB chairman believes the delay in the operationalisation of these REDs is contributing to inefficiencies within the electricity distribution industry. 

ECB is mandated with controlling the electricity supply industry (ESI) with the main responsibility of regulating electricity generation, transmission, trading, distribution, and supply as well as importing and exporting.

NamPower managing director Kahenge Haulofu recently proclaimed that REDs should be established in the south to be able to mount skills to effectively deal with distribution challenges in southern parts of the country.

Last month, it was reported that the Rehoboth Town Council (RTC) owed NamPower a staggering N$190 million.

Local media reports that Rehoboth is struggling with financial difficulties, and the council’s debt to NamPower has generated concerns among residents and local officials.

Financial performance

Moreover, the ECB annual report stated that during the 20023/24 financial year, income generated amounted to N$91.7 million. This represents an increase of 4.2% from the N$88 million recorded in the previous financial year. “The general weak economic conditions significantly affected the ECB levy income, recording a notable decrease of 9% between the 2020 and 2021 financial years. 

However, the economic activities noted a slight recovery, resulting in an increase of 0.5% in levy income for the current financial year. Due to anticipated economic growth, a rise of 2.8% is projected in levy income for the next financial year,” the report reads.

2024-02-09  Maihapa Ndjavera

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