The Electricity Control Board (ECB) is set to transition from its current National Connection Charge Policy (NCCP) to a legally binding National Connection Charge Code (NCCC).
According to ECB’s Senior Financial Analyst and Project Manager, Tonateni Amakutuwa, the current policy’s non-mandatory nature has led to inconsistencies and complaints.
Thus, he said this shift aims to address issues of enforcement, consistency, and clarity in managing connection charges across Namibia.
“One of the main reasons for transitioning from a policy to a code is to address the enforcement of connection charges in the country. As you know, a policy is not enforceable; adherence is optional. In contrast, a code is a legally binding document that must be followed,” said Amakutuwa.
Established in 2014, the NCCP aimed to standardise the approach to managing electricity network connections and associated charges.
However, not all entities have aligned their policies with the national standard, causing misunderstandings.
“We have observed that not everyone aligns their policies with the national policy. The goal of the national policy was to create a unified document for everyone to use. However, this alignment has not been achieved, leading to misunderstandings, misinterpretations, and complaints regarding connection charges,” Amakutuwa explained.
To address these issues, the ECB has decided to establish a legally binding code.
“To ensure consistency and clarity for everyone involved, we have decided to establish a code, ensuring it is enforceable and legally binding for all,” stated Amakutuwa.
This move is also aligned with the Electricity Act 4 of 2007, reflecting recent developments in the energy landscape.
ECB General Manager of Economic and Market Regulation, Pinehas Mutota, stressed the significance of this transition.
“The ongoing discussion might delay us in meeting our objective. The main issue is why we must hand over the transformer to a licensee, whether it’s NamPower or similar. As a lead stakeholder, it’s our responsibility to clarify why the transformer should be given to the customer through the licensee,” said Mutota.
Mutota also clarified the process for code approval, which would only require the Minister of mines and energy, not the Cabinet.
“The Minister might want to discuss it, but legally, the code is approved by the Board and the Minister. Unlike regulations or policies that need cabinet approval, the code does not,” he added.
The NCCC will specify responsibilities and charges for consumers connecting to new or existing systems, ensuring that licensees receive fair compensation for incurred costs.
“We must be clear about the connection charge and the promotion of electrification access. The connection charge policy aims to clarify who is responsible for payment and what they are paying for without removing subsidies,” Mutota emphasised.
To facilitate this transition, the ECB has appointed Ricardo PLC, a British consultancy firm, to oversee the project.
Environmental Consultant Uli von Seydiltz from Ricardo PLC outlined the approach for licensees, noting that the idea with the NCCC will then be that licensees only publish their connection charge conditions where there is flexibility allowed by the connection charge code.
“So we will not be expecting licensees to again regurgitate the entire code, but rather only publish those items that they are allowed to individualise,” von Seydiltz explained.
Von Seydiltz acknowledged the complexity of the code’s language but assured efforts to make it more accessible.
“And probably, but that will be in a more explanatory fashion, maybe reflect the key features of the national connection charge code in a language that customers will hopefully find easier to understand than the code. Because the one thing we cannot do with the code versus the policy is that we can unfortunately not make the language easier to understand because of the legal nature of the code document,” he noted.
He noted that the Erongo RED Connection Charge Policy aligns well with the NCCP, and NamPower’s policy is largely aligned, with minor deviations.
“However, Outdoor Power Equipment, CENORED, the City of Windhoek, and the Rehoboth Council show poor alignment. NORED’s policy is fairly well-aligned but not perfect. Licensees were expected to develop their codes under the policy, interpreted as requiring a comprehensive approach,” he said.
