Article

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.