ECB gauges interest for central RED
REDs offer economy of scale
A RED is a regional electricity distributing company tasked with supplying electricity to the residents in a specific region.
The Electricity Control Board (ECB) is investigating stakeholder interest in the establishment of a Regional Electricity Distributor (RED) that may include the municipal jurisdiction of Windhoek.
The establishment of a RED had been mulled over for some time, dating back as far as 2018, when the ECB said it hoped to roll-out REDs in the southern and central regions of Namibia.
ECB acting CEO, Rachel Boois, said there were discussions of buy-in from targeted stakeholders.
"The implementation of the Central Regional Electricity Distributor is a consultative and participative process and consultations are still ongoing with the various stakeholders for their buy-in," Boois said.
Single entity
A RED is a regional electricity distributing company tasked with supplying electricity to the residents in a specific region.
A restructuring study, completed by the ministry of energy in 1998, recommended that Namibia be divided into five areas and that a single electricity distributor be established for each area, which is solely responsible for electricity distribution in that area.
It was proposed that all the existing distributors should then join the RED in those areas.
Benefits
The ECB maintains that a RED offers economy of scale; that duplication of costs and systems can be avoided; electricity can be supplied at lower prices; and that it will offer uniformity of standards, tariffs, and service within a single RED.
Furthermore, it will improve capacity since the RED will be able to solely focus on its core business and it will be able to employ sufficient and suitably qualified people and systems.
These were some of the benefits listed.
Namibia currently has three active REDs, which include Nored, which distributes power to consumers in the Ohangwena, Omusati, Oshikoto, Kunene, Oshana, Okavango and Zambezi regions.
Cenored distributes power to consumers in the Otjozondjupa Region and Erongo Red distributes power to consumers in the Erongo Region.
The establishment of a RED had been mulled over for some time, dating back as far as 2018, when the ECB said it hoped to roll-out REDs in the southern and central regions of Namibia.
ECB acting CEO, Rachel Boois, said there were discussions of buy-in from targeted stakeholders.
"The implementation of the Central Regional Electricity Distributor is a consultative and participative process and consultations are still ongoing with the various stakeholders for their buy-in," Boois said.
Single entity
A RED is a regional electricity distributing company tasked with supplying electricity to the residents in a specific region.
A restructuring study, completed by the ministry of energy in 1998, recommended that Namibia be divided into five areas and that a single electricity distributor be established for each area, which is solely responsible for electricity distribution in that area.
It was proposed that all the existing distributors should then join the RED in those areas.
Benefits
The ECB maintains that a RED offers economy of scale; that duplication of costs and systems can be avoided; electricity can be supplied at lower prices; and that it will offer uniformity of standards, tariffs, and service within a single RED.
Furthermore, it will improve capacity since the RED will be able to solely focus on its core business and it will be able to employ sufficient and suitably qualified people and systems.
These were some of the benefits listed.
Namibia currently has three active REDs, which include Nored, which distributes power to consumers in the Ohangwena, Omusati, Oshikoto, Kunene, Oshana, Okavango and Zambezi regions.
Cenored distributes power to consumers in the Otjozondjupa Region and Erongo Red distributes power to consumers in the Erongo Region.
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