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Manufacturers association to conduct electricity costs study |
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Written by Staff Reporters
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The Namibia Manufacturers Association (NMA) plans to update
a study first undertaken three years ago on how the cost of electricity in
Windhoek negatively impacts on the manufacturing industry in the city.
The NMA said it has now decided that this study should be
updated to determine how this situation has changed during the past three years.
The 2004 report indicated that manufacturers do indeed pay
60% to 70 % more for electricity in Namibian cities and towns than their South
African counterparts, and that large manufacturers in Windhoek also paid 20%
more for electricity than other consumers.
Due to the intervention of the NMA, manufacturers in
Windhoek are already paying 10% less for electricity, with another 10% relative
price decrease due not later than July 2008.
“Due to representations by the NMA and the intervention of
the Electricity Control Board (ECB), manufacturers experienced a 9% lower
electricity price increase in 2005 in Windhoek compared to other consumers,”
the NMA said.
Last year, the City of Windhoek implemented a higher rate
increase than that which was approved by the ECB. The NMA took this issue up
with the ECB. The ECB subtracted the over payment from the revenue requirement
of the city before calculating the new tariffs for the 2007/8 year, the NMA.
The ECB has further instructed the city to investigate its
tariff structure to ensure that Windhoek manufacturers pay cost reflective
tariffs and bring the different tariffs in line to minimise cross
subsidisation.
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