Nored loses N$28 million annually by undercharging irrigation farmers

The Northern Regional Electricity Distributor, Nored, reportedly loses approximately 28 million Namibian dollars each year by not fully charging irrigation farmers for their electricity consumption. This longstanding practice, which disregards a rule requiring payment for 70 percent of the maximum required capacity, has prompted a national discussion on tariff reform and energy efficiency. Officials at a recent stakeholder workshop highlighted that high power costs threaten the financial viability of national green scheme projects.

Ndiyakupi Nghituwamata, an executive director in the agriculture ministry, stated that electricity constitutes the largest operational expense for these schemes, endangering food security and rural employment. Abraham Hangula from the energy ministry advocated for a comprehensive solution beyond just adjusting tariffs. He recommended improved pumping schedules, solar energy adoption, and infrastructure modernization to lower costs, warning against permanent subsidies.

Stakeholders agreed on several measures, including the creation of a special agricultural electricity tariff and the formation of an inter-ministerial task team. The group concluded that supporting irrigation requires a combined approach of modernized infrastructure, renewable energy integration, and operational reforms. Robert Kahimise of the Electricity Control Board affirmed the commitment to developing balanced, evidence-based regulatory solutions.
 

Attachments

  • Nored loses N$28 million annually by undercharging irrigation farmers.webp
    Nored loses N$28 million annually by undercharging irrigation farmers.webp
    120.7 KB · Views: 54

Similar threads

Trending content

Sponsored

Top