The Electricity Control Board (ECB) has recommended that the Energy Minister grant energy generation licenses to Cleanergy Solutions and Mirach Energy.
Cleanergy Solutions seeks a 5MWp license for self-consumption, while Mirach Energy aims for a 16.20MWdc license to supply power to CENORED.
In addition to these recommendations, the ECB resolved to amend the export license conditions for Greenco Renewable Energy (Pty) Ltd.
The new conditions will focus solely on export activities. The Board also directed that all export licenses be updated to reflect similar changes.
Furthermore, the ECB advised against granting a trading license to Renex Energy Trading, citing that the contestable customer in question is already accounted for.
The ECB also approved new bulk electricity tariffs for the 2024/2025 period and announced several critical resolutions impacting the electricity supply industry. This follows NamPower’s announcement of an 8% increase in bulk electricity tariffs, which includes generation and transmission costs and will take effect on July 1, 2024.
According to the latest schedule, NamPower Distribution applied for 6.4% increased but only received the greenlight to increase tariffs by 6.0% together with CENORED and Oshakati Premier Electric.
CENORED Okahandja got a 6.2% approval, CENORED Omaheke 1.5%, Erongo RED, 6.6%, Keetmanshoop Electricity Business Unit (KEBU), 6.4% and Rehoboth Town Council 6.4%.
Two additional distributors, NORED and the City of Windhoek, applied for tariff increases but were denied the right to increase as they must both meet specific conditions before their approved tariffs can be released.
“As we cautioned during the last tariff review period, all distribution utilities ought to apply for their annual tariff reviews immediately after the announcement of the NamPower bulk electricity tariff,” said the regulatory board.
“This is so because utilities that do not apply for tariff adjustments in time to coincide with the implementation of the bulk tariffs, which is effective 01 July 2024, stand to lose revenue because they will be selling electricity based on outdated tariffs while purchasing on new tariffs, especially pre-paid revenue that is collected through pre-paid sales.”
ECB said NORED must submit audited financial statements for the 2022 financial year, and the City of Windhoek must provide an updated progress report on the ring-fencing of their Electricity Department.
The ECB highlighted the importance of public involvement in the tariff determination process. Major distribution utilities presented their tariff applications directly to end-consumers in designated areas, and the feedback received during these consultations was considered in the approved tariffs. Key concerns from the public included electricity access, affordability, and service delivery.
The ECB also made a ruling on blocking electricity meters of clients due to non-payment of water or rates and taxes on municipal bills.
“The ECB received a customer complaint with regard to a local authority blocking pre-paid meters for municipal accounts in arrears. The ECB ruling on the matter is that this practice is not allowed under the Electricity Act, Act No 4 of 2007,” the organisation said.
“Discontinuation or termination of electricity supply must be done in in accordance with the provisions of the Electricity Act, Act No 4 of 2007, and regulatory instruments, such as the Economic Rules of 2016, issued thereunder, which state that discontinuation or termination of electricity supply for arrears can only be done in respect of arrears arising from the distribution and supply of electricity.”
