Why is NamPower a shareholder in Erongo RED while it sells electricity to Erongo RED making a separate ompany profit of N$120 million?
The medium-term strategy of Government is that NamPower should withdraw from distribution. However, NamPower has been a distributor to farms and rural areas and has therefore created assets which entitle it to shareholding in RED companies. NamPower has technical experience and a sound financial track record that will be used in the short-term to ensure the success of the RED. All licensees (including NamPower) are allowed regulated returns on their assets which eventually translate into their profits; none of the licensees are allowed to make excessive profits on electricity.
Related Questions
- There is a perception amongst consumers that the salaries of Erongo RED staff are too high resulting in electricity prices to increase. Can Erongo RED please respond?
- Why have electricity prices increased so much since Erongo RED started?
- How electricity boxes are connected to a separate structural panels?
