ECB revenue increased to N$93.7 million
Revenue generated by the Electricity Control Board ( ECB) during 2019/ 20 financial year amounted to N$93.7 million, representing an increase of 4.8% from the N$89.4 million recorded in the previous financial year. These figures were confirmed in the ECB’s 2019/20 annual report.
According to the annual report, the ECB’s main source of revenue is levy income which is charged on volumes of electricity supplied by NamPower and licensed embedded or isolated generators.
The ECB levy rate per kWh increased by 4.2% on 1 July 2019, whereas the actual volumes of electricity supplied decreased by 2.3% compared to the previous financial period. This resulted in an overall increase in levy income of 2.6%.
The report further stated that the reduction in electricity units sold is mainly due to an increase in the generation of electricity for own consumption, for example solar rooftops. Another contributing factor to the decrease in units sold is the prevailing decrease in economic activities which results in a decrease in electricity consumption by large power users such as mines.
“Other income for the period under review was derived mainly from interest received, license fees and rentals earned on the former ECB office building,” states the report.
The period under review marks the fourth financial year of the ECB’s five-year strategic plan from 2016/2017 to 2020/2021. The board activities are carried out per the annual plan and budget, which is based on this plan.
Meanwhile, the latest figures show that operational expenditure increased from N$62.8 million to N$67.5 million, which translates to an increase of 7.5% from the previous to the current financial year, mainly due to inflation.
The projected expenditure for the period under review decreased by 29.7% when compared to the previous financial year. This decrease, as well as the budget under-expenditure, is attributed to various factors such as project dependency on external factors, additions to the initial scope leading to project delays, amongst others. However, the report states that mitigation against underexpenditure in the future could be addressed through planning reviews, budgeting, and efficient project execution.
While the annual report confirms a sound financial position for ECB, the continued decrease in NamPower sales is a concern because it decreases levy income.
“The decrease in unit consumption is anticipated to continue in the next financial year due to the impact of Covid-19 on economic activities. Therefore, continuously monitoring the financial position and controlling expenditure remains key to ensure that the ECB has adequate financial resources to carry out its mandate,” reads the report.
Chief Executive Officer of ECB, Foibe Namene, said the decrease in unit consumption is anticipated to continue in the next financial year due to the impact of Covid-19 on already depressed economic activities.
Chairperson of the ECB board of directors, Gottlieb Hinda, also stressed that over the past few years, public opinion has consistently indicated strong support for the expansion of renewable energy and renewable energy technology.
“Following the approval of the Energy Storage Desktop Study, the ECB has embarked on a project to develop Energy Storage Regulations. The project is envisaged to commence in the next financial year and to be finalised during the year 2021,” said Hinda.