The Electricity Control Board (ECB) Chief Executive Officer, Robert Kahimise, says the Regional Electricity Distributors (REDs) current model requires significant refinements rather than elimination.
His comments come amid concerns regarding the cost and efficiency of the REDs, particularly regarding their impact on consumers.
Kahimise argued that the creation of REDs has not been a failure, emphasising their importance in the current electricity supply framework.
“If they were not created, I don’t want to imagine what the electricity supply would have been. We must explore ways to enhance their effectiveness rather than abolishing them outright,” he noted.
He highlighted the need to refine the existing model, suggesting that adjustments could improve the situation.
“We can refine the model by looking at the local authorities’ recharge, which we all contribute. Additionally, we can refine the model in terms of shareholding to better reflect the needs of all stakeholders,” he noted.
Kahimise proposed that public utilities like NamPower should be removed from the distribution process to focus on generation, transmission and trading.
“Maybe we need to remove the public utilities like NamPower from distribution through that new model so that they can concentrate on their core functions and improve overall service delivery,” he said.
Discussing efficiency improvements, he mentioned the potential for consolidating distributors.
“If we have to combine two distributors, like maybe NORED and CENORED, we can combine them. However, such decisions should be justified by the numbers and the potential impact on consumers’ experiences with electricity services,” he said.
Kahimise reiterated that the REDs remain a crucial option for addressing the country’s electricity challenges.
“There is no better option available at this point. I have seen criticism from opposition parties and even the government, but we must recognise that there is no other viable incentive than the REDs for ensuring sustainable electricity distribution,” he added.
Meanwhile, the CEO provided an update on the establishment of the Central RED, which will include the City of Windhoek, the Khomas Regional Council, and several customers that belong to NAMPOWER, such as Brakwater and Groot Aub, among others.
“We have communicated and shared the outcome of the summit on the electricity distribution grid code and connection code and are now waiting for the Minister’s approval to utilise some government funds to support the necessary consultancies. This will allow us to create the fifth RED, with the City of Windhoek expected to hold an 80% stake,” he said.
