Namibia has seen its electricity tariff remaining the same as the 2019/2020 for the new 2020/2021 financial period. The confirmation came in an announcement by the CEO of the Electricity Control Board, Mrs. Foibe Namene (23 April 2020) and placed on their website.
This means that the impact of electricity rate inflation will be zero for 2020/2021. In this period of COVID-19 disruptions and uncertainties, at least the impact of electricity pricing will have clear outlook. One can speculate as to how the pricing has remained steady in the face of so much turmoil but the fact that "forward" pricing and the greater impact of Ruacana hydro on fleet performance could be a factor.
Any indication of a much lower demand due to closed businesses and slow startups to the commodity market could impact NamPower's ability to tolerate these tariff levels. Added to this sorrow could be defaulting bulk suppliers such as municipalities.
Time will tell how this plays out but with the resilience that the Namibian economy has shown over the last three years through commodity price fluctuations, exchange rate depreciation and extreme droughts, the possibility of a positive turnaround is still on the cards.
The conversation continues and so visit our FREE publication under the MEDIA page: www.rdjconsulting.co.za