Electricity consumers will pay a smaller increase from 1 August, after the Electricity Control Board (ECB) cut NamPower’s requested tariff hike and the government stepped in with N$90 million to reduce costs. The ECB initially approved a 4.8% increase in NamPower’s bulk electricity tariff for the 2026/27 financial year, below the 8.4% increase requested by the power utility. Following government intervention, the increase passed on to consumers has been reduced to an average of 3.7%. The government’s relief package includes N$50 million from the Long Run Marginal Cost Fund and N$40 million from the National Energy Fund. Follow us on WhatsApp | LinkedIn for the latest headlines
This means the average bulk tariff will increase from N$2.06 per kilowatt-hour (kWh) to N$2.14 per kWh. Without the intervention, consumers would have faced a larger increase, with the tariff expected to rise to N$2.23 per kWh. For households and businesses, this means electricity bills will still rise, but by less than NamPower had requested.
The ECB estimates that a N$100 electricity purchase will yield between 31 and 38 kWh after the adjustment, depending on the electricity distributor. City of Windhoek customers are expected to receive about 37.60 kWh, while Erongo RED customers will receive about 31.11 kWh for the same amount. The latest increase is lower than last year’s tariff adjustment, when NamPower requested a 17.44% increase in the bulk tariff for the 2025/26 financial year. The ECB later approved a lower increase after reviewing the application.
This year’s lower increase comes as the regulator seeks to balance NamPower’s need for revenue with the financial pressure on electricity users. ECB chief executive officer Robert Kahimise said the board considered the affordability challenges facing households and businesses before making its decision.
“Having carefully considered the evidence before it and mindful of the affordability pressures facing electricity consumers, the ECB Board resolved to approve a moderated bulk tariff increase of 4.8%, significantly below the 8.4% sought by NamPower,” he said. Kahimise said the government’s financial support helped ease the burden on consumers. “Electricity is not a luxury. It lights homes, keeps clinics and schools running, and supports the small businesses on which many livelihoods depend,” he said. He said that without government support, consumers would have borne the full 4.8% increase approved by the ECB. The ECB has also directed electricity distributors to keep social tariffs unchanged. This means that pensioners and other qualifying low-income households will not pay more under the social tariff.
Kahimise said the approved increase remains below Namibia’s current inflation rate of 4.4% and is not expected to place major pressure on the cost of living. The regulator said the approved tariff will allow NamPower to continue operating sustainably while maintaining electricity supply across the country. Kahimise said Namibia is making progress in producing more of its own electricity through renewable energy projects, but the country still relies on imported electricity to meet demand.
He said imported electricity is more expensive and exposes Namibia to changes in international prices and exchange rates. “Continued reliance on imported electricity exposes the country to external supply, pricing and exchange-rate risks,” he said. Kahimise added that increasing local electricity generation would strengthen energy security and help reduce electricity costs over time.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He also urged local authorities and regional electricity distributors to settle outstanding debts to NamPower, saying the electricity sector’s financial stability depends on distributors paying their accounts. “No modern economy can thrive without dependable electricity. It is the backbone of growth, investment and development,” he said. The new bulk tariff takes effect on 1 August. Local authorities and regional electricity distributors must still submit their tariff applications to the ECB before new consumer tariffs are approved. A concerned Windhoek resident noted that they currently pay N$100 for just 39.6 units.
“Imagine a household of more than three, with someone at home all throughout the day. The cost of living keeps increasing, but our salaries do not increase.
We are battling taxi and petrol fees. If managing my finances was difficult a few years ago, it is now essentially impossible,” said the frustrated resident. – [email protected]
