Namibia: Govt Spends N$90m to Cushion Consumers ...Reducing Nampower's 8.4 Percent Request to a More Manageable 3.7 Percent

What the report says

AllAfrica, carrying a New Era report from Windhoek dated 21 July 2026, says Namibian electricity users will face a smaller tariff rise from 1 August after the Electricity Control Board moderated NamPower’s proposed increase and the government provided N$90 million in support. NamPower had sought an 8.4% rise in the bulk electricity tariff for the 2026/27 financial year, but the regulator approved 4.8%. With government relief applied, the average increase to consumers is expected to be about 3.7%.

According to the report, the support package combines N$50 million from the Long Run Marginal Cost Fund with N$40 million from the National Energy Fund. The average bulk tariff will move from N$2.06 per kilowatt-hour to N$2.14, rather than the N$2.23 that would have applied without the intervention. The ECB estimated that a N$100 purchase will provide different amounts of electricity depending on the distributor, including about 37.60 kWh for City of Windhoek customers and 31.11 kWh for Erongo RED users.

ECB chief executive Robert Kahimise said the board weighed consumer affordability against NamPower’s revenue requirements. The regulator also directed local authorities and regional electricity distributors to keep social tariffs unchanged, shielding pensioners and qualifying low-income households from higher social-tariff charges. The approved increase is below Namibia’s reported 4.4% inflation rate, though consumers will still see bills rise.

The report adds that Namibia remains exposed to higher costs because it still imports part of its electricity, while renewable generation projects are intended to improve local supply over time. Distributors must submit their own tariff applications to the ECB before final consumer tariffs are approved.