NamPower Reports N$700 Million in Unpaid Bills, Seeks 8.4% Tariff Increase
NamPower is facing N$700 million in unpaid electricity bills over 90 days overdue, warning of financial strain. The utility has requested an 8.4% increase in tariffs, rising from N$2.16 to N$2.23 per kilowatt-hour, to manage rising costs and support investments. Energy costs constitute 63% of total expenses, while operational costs are 22%. NamPower anticipates a 2% growth in electricity demand and continues to invest in renewable projects and infrastructure upgrades.
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NamPower is struggling to recover N$700 million in overdue electricity bills, a situation that threatens its financial stability. The corporation has requested an 8.4% increase in electricity tariffs from the Electricity Control Board, aiming to raise the average cost from N$2.16 to N$2.23 per kilowatt-hour.
This increase is deemed necessary to cover rising operational costs, which include 63% from energy procurement and 22% from fixed costs. NamPower projects a 2% growth in electricity demand and is investing in solar plants, Ruacana hydropower upgrades, and transmission infrastructure. The requested tariff increase is significantly lower than the actual cost-reflective increase of 30.4% to ease consumer burden.
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