The Namibian government has disbursed N$89.2 million of the N$365 million allocated to subsidise electricity tariffs for the 2024/2025 financial year, an official has revealed.
The subsidy was introduced to counter the impact of an 8% electricity tariff increase and ensure consumers continue to pay the same rates as in the previous year.
“The Namibian Government made approximately N$365 million available to subsidise electricity consumers for the 2024/2025 financial year, ensuring that consumers would pay the same tariff as per the 2023/2024 Schedule of Approved Tariffs,” said Electricity Control Board (ECB) CEO Robert Kahimise.
The subsidy, effective from 1 July 2024, aligns with the financial year of electricity licensees, who were given the option to maintain 2023/2024 tariffs while incorporating the government subsidy.
Of the total allocation, N$251 million was directed to NamPower to ensure uninterrupted electricity supply, while N$115 million was earmarked for distribution licensees to mitigate the tariff increase’s impact on consumers.
“We have already processed the first quarter (Q1) claims, totalling N$78.7 million, which have been paid to major licensees such as NamPower (Bulk), Erongo RED, Keetmanshoop Municipality, and others,” Kahimise confirmed.
From the N$78.7 million paid to licensees, N$62.75 million was allocated to NamPower, while Erongo RED received N$3.71 million. The remaining funds were distributed among municipalities and regional suppliers, including Keetmanshoop Municipality (N$524,866), NamPower Distribution (N$1.34 million), NORED (N$8.72 million), and Oshakati Premier Electric (N$1.66 million).
The Q1 claims covered the period from July to September 2024 and were disbursed promptly.
“Claims for Q1 received after the September 2024 deadline will be processed alongside Q2 claims for the period October to December 2024. These include payments to the City of Windhoek (N$6.57 million), CENORED (N$2.47 million), and others,” said Kahimise.
However, Kahimise noted that some licensees, including Gobabis Municipality and Gochas Village Council, have yet to submit their claims.
“Licensees are urged to submit their claims promptly. Failure to do so could delay payments and hinder the overall implementation of the subsidy,” he emphasised.
He added that claims received after the September 2024 deadline would be processed alongside second-quarter claims for October to December 2024.
In the coming months, the ECB will continue engaging with licensees on the modalities for recovering their approved revenue requirements for the 2024/2025 period.
Kahimise reiterated that the government’s subsidy would help cushion consumers against tariff increases while maintaining financial stability in the sector.
“We want to ensure that electricity consumers are protected from the full impact of tariff increases. This subsidy is one way we are working to balance the financial sustainability of the sector with the affordability needs of the public,” he said.
Looking ahead, the ECB is preparing for the 2025/2026 bulk electricity tariff review and will conduct public consultations on the proposed tariffs.
“We will ensure that electricity consumers continue to have a voice in determining tariff levels,” Kahimise stated, adding that the first public consultation session for the 2025/2026 tariff review will take place in Windhoek on 5 March 2025.
“The ECB will continue engaging with the public and distribution licensees to ensure transparency in the tariff-setting process,” he said.
