Naloba says soaring electricity prices bad for business
• Govt blamed for ‘unaffordable’ prices
The Namibia Local Business Association has warned that surging electricity prices are another blow to already struggling businesses and households in Namibia.
Namibia Local Business Association (Naloba) vice-president Kanu Amadhila has issued a warning following the announcement of electricity tariff hikes, saying businesses are already struggling and the higher prices will continue to put them in a difficult position.
Amadhila added that electricity is no longer affordable for both businesses and the general public.
“Continuous electricity tariff hikes have killed and continue to kill businesses in Namibia. Electricity is no longer affordable in Namibia, both for domestic and international businesses, and it is a key component of every economic activity for strategic growth,” Amadhila argued.
Amadhila was responding to questions by Namibian Sun about the Electricity Control Board's (ECB's) decision to approve NamPower's application to increase their tariff by eight percent.
The decision means electricity-distributing companies will be forced to hike their tariffs to compensate for the high cost of electricity from NamPower.
Growing concern
Amadhila said the situation will worsen as countries such as Zambia and South Africa, from which electricity is imported, can no longer guarantee supply.
He attributed the unaffordable electricity prices to government's failure to implement electricity-generating initiatives such as the Epupa hydropower and Kudu gas projects.
“The main cause has been attributed to the failure to implement previously initiated capital projects such as the development of Epupa hydropower and Kudu gas projects, followed by the recent cutoff of import power by Zambia and pressure from South Africans for Eskom to terminate power purchase agreements with Namibia,” he argued.
“I predict that we are facing a huge challenge, and the worst is still to come," he warned.
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Amadhila added that electricity is no longer affordable for both businesses and the general public.
“Continuous electricity tariff hikes have killed and continue to kill businesses in Namibia. Electricity is no longer affordable in Namibia, both for domestic and international businesses, and it is a key component of every economic activity for strategic growth,” Amadhila argued.
Amadhila was responding to questions by Namibian Sun about the Electricity Control Board's (ECB's) decision to approve NamPower's application to increase their tariff by eight percent.
The decision means electricity-distributing companies will be forced to hike their tariffs to compensate for the high cost of electricity from NamPower.
Growing concern
Amadhila said the situation will worsen as countries such as Zambia and South Africa, from which electricity is imported, can no longer guarantee supply.
He attributed the unaffordable electricity prices to government's failure to implement electricity-generating initiatives such as the Epupa hydropower and Kudu gas projects.
“The main cause has been attributed to the failure to implement previously initiated capital projects such as the development of Epupa hydropower and Kudu gas projects, followed by the recent cutoff of import power by Zambia and pressure from South Africans for Eskom to terminate power purchase agreements with Namibia,” he argued.
“I predict that we are facing a huge challenge, and the worst is still to come," he warned.
[email protected]
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