The Electricity Control Board (ECB) announced a 3.8% NamPower bulk electricity tariff in May this year, which was supported with a financial support of N$283 million by the Namibian Government, equivalent to 3.8%. This adjustment changed the average tariff, which is applicable to NamPower bulk customers such as Regional Electricity Distributors (REDs), Local Authorities, Regional Councils and large industrial transmission customers (such as mines), from N$1.9856 per kWh to N$ 2.0611 per kWh for the financial period 2025/2026.
Following the bulk electricity tariff announcement, all distribution licensees were urged to individually apply to the ECB for a review of their distribution tariffs, which are applicable to end consumers effective July 2025.
To enhance end-consumers’ involvement in the determination of distribution utilities end-user tariff, the ECB directed major distribution utilities to present their tariff applications directly to consumers and customers in their designated areas. These engagements did indeed take place, facilitated by the ECB. Some of the key concerns highlighted are:
- High operating costs;
- Opposition to continuous tariff increases;
- Increased procurement from Independent Power Producers (IPPs);
- Long-term plans to reduce reliance on costly imports;
- Social tariffs for pensioners and low-income households;
- Requests for clarity on cross-subsidies between business, residential, and rural consumers;
- Transparency of surcharge calculations;
- Concerns about delays in electrification in townships and rural areas;
- Limited engagement with licensees; and
- Slow service rollout.
Following the internal due diligence process, the ECB approved distribution utilities’ end-consumer tariffs, effective 1 July 2025 until 30 June 2026. The distribution utilities’ end-consumer tariffs applications were submitted to the ECB between 13 May and 15 June 2025.
| Licensee | % Application | % Approved | Effective date for Post paid | Effective date for Pre-paid | |
| 1. | NamPower Distribution | 3.02 | 1.7 | 01 July 2025 | 04 July 2025 |
| 2. | CENORED | 5.8 | 3.8 | 01 July 2025 | 04 July 2025 |
| 3. | CENORED Omaheke | 1.5 | 0.75 | 01 July 2025 | 04 July 2025 |
| 4. | Oshakati Premier Electric (OPE) | 4.19 | 3.5 | 01 July 2025 | 04 July 2025 |
| 5. | Erongo RED | 3.7 | 3.7 | 01 July 2025 | 04 July 2025 |
In addition, the following distributors also applied before 15 June 2025 for their tariff increases, however, their approved schedule of tariffs will be pending until they comply with ECB conditions stipulated below.
| Licensee | % Application | % Approved | |
| 1. | NORED | 7.4 | 4 |
| 2. | City of Windhoek | 4 | 3.9 |
The two licensees must comply with the following conditions before the approved tariffs can be applied:
- NORED
- Submit audited financial statements for 2022/2023 financial period.
- Obtain auditors’ commitment to finalize 2023/2024 audited financial statements.
- Power Quality (Quality of Supply and Quality of Service) reports.
- City of Windhoek
- Submit Operating and Reporting Manual Financial Statements (2023/2024).
- Provide ECB with a detailed report on Electricity Business Unit ring-fencing progress status and the measures to fully ring-fence the business unit.
- Power Quality (Quality of Supply and Quality of Service) reports.
The ECB commended the distribution utilities which submitted their tariff applications on time, in line with regulatory directives. Going forward, the regulator said habitual non-compliance will not be tolerated, and all licensees are directed to submit their tariff applications promptly following the bulk tariff announcement.
ECB BOARD DECISIONS RELATED TO NAMIBIAN ESI INDUSTRY
The ECB Board meeting held on 12 June 2025 recommended the approval of the following generation licences by the Minister of Industries, Mines and Energy (MIME):
| Applicant | License Type | Installed Capacity | Source | Intended Off taker | |
| 1. | Telecom Namibian | Generation | 2.4MW | Thermal/Diesel Genset | Own consumption |
| 2. | NamPower Rosh Pinah plant | Generation | 124.98 MWp (maximum export capacity of 100 MWac) | Solar PV Plant | Own consumption |
| 3. | Dunes Mall | Generation | 1.27MWp | Solar PV Plant | Own consumption |
| 4. | EPF Systems KokerboomHardapAuasObib | Generation (x4) | 40 MWp to export 30 MWac – 160MWh battery energy storage system (BESS) | Solar PV Plant | Export |
The ECB Board also resolved to amend the Rössing Uranium Limited generation licence with an increase of installed capacity to 30MVA for the remaining period of the licence. The Board further resolved in favour of a renewal of distribution and supply licenses for //Au-Ob RED shareholders that have signed the shareholders agreement with //Au-Ob RED, for a licence period of 12 months from 01 July 2025 until 30 June 2026 or until such time that //Au-Ob RED is established and operational, whichever event occurs first. Approval of the amended shareholders agreement by the Auditor-General’s Office is still pending, and ECB is actively following up on this matter.
In addition, the ECB Board approved the following regulatory instruments, which are expected to aid the further growth of the Namibian ESI:
| Regulatory Instrument | Next Course of Action |
| The Board approved the revised Wheeling Framework, Version 6. | Done |
| The Board approved the revised Transmission Grid Code. | The Transmission Grid Code was submitted to the Minister for approval. |
| The Board approved the revised Distribution Grid Code. | The Distribution Grid Code was submitted to the Minister for approval. |
| The Board approved the Connection Code. | The Connection Code was submitted to the Minister for approval. |
| The Board approved the Embedded Generation Standard. | The Standard was submitted to the NSI for adoption. |
| The Board approved the National Connection Charge Code. | The National Connection Charge Code was submitted to the Minister for approval. |
NAMPOWER OUTSTANDING DEBT
The debt owed to NamPower by local authorities and regional councils is increasing at an average of N$10 million per month. The Rehoboth Town Council remains on a bulk prepayment arrangement. Its debt continues to grow by about N$1.2 million per month due to interest charges. This is because only 10% of the prepaid amount is being applied to the debt, which slows down repayment. The ECB Board at its meeting on 12 June 2025 recommended that NamPower consider stopping interest charges on arrears for local authorities that are making good-faith efforts to repay their debts.
IMPLEMENTATION OF THE NATIONAL INTEGRATED RESOURCE PLAN (NIRP)
The Anixas and Khan plants have been completed. The CERIM project experienced delays due to land rights issues, which also affected financial close. The Rosh Pinah solar PV plant is expected to be commissioned in the second quarter of 2026, while the Otjikoto biomass plant is scheduled for commissioning in the second quarter of 2027. NamPower’s Battery Energy Storage System (BESS) is set to come online in the fourth quarter of 2025. These plants will aid Namibia’s efforts towards security of electricity supply and help the country to lessen dependence on electricity imports, which are expensive. Chief Executive Officer Robert Kahimise assured the Namibian public that the ECB will continue to take a measured judgement in every step of the electricity tariff review process, thereby ensuring electricity affordability, reliability and security of supply, and sustained economic industry performance.
