The City of Windhoek has proposed a 10.4% electricity tariff increase to the Electricity Control Board (ECB) for the upcoming 2024/25 financial year.
City of Windhoek’s Strategic Executive for Electricity O’Brien Hekandjo stated that the proposed tariff increase is primarily driven by NamPower’s recent adjustments and non-cost reflective tariffs.
“The proposed tariff adjustment by the City of Windhoek will result in an average increase of N$3.03 per kWh from the current N$2.75 per kilowatt hour (kWh),” said Hekandjo.
The announcement was made during a public tariff review presentation organised by the ECB in Windhoek on Thursday.
This comes as NamPower, the primary electricity supplier to the City of Windhoek, was approved for an 8% bulk tariff hike by the ECB for the same period.
The adjustment revised the average tariff from N$1.9856 per kWh to N$2.1444 per kWh, effective from July 2025 to June 2026.
Despite this proposed increase, Hekandjo noted the City’s rates remain lower compared to other licensees in the market.
“Notably, charges from NamPower constitute 78% of the City’s total electricity expenditure, with additional costs arising from operations, maintenance, infrastructure depreciation and employee costs,” he said.
The ECB executive for Economic and Market Regulations, Pinehas Mutota, explained that the regulator reviews tariff adjustment applications based on sound economic principles, noting that the profit margins for distributors are capped at 6%.