REDs given red card in new electricity bill

ALL references to Regional Electricity Distributors (REDs) have been scrapped from new draft legislation for Namibia’s electricity sector.

Major amendments to the draft legislation, first tabled in Parliament three months ago, are scheduled to be unveiled in the National Assembly today by Mines and Energy Minister Erkki Nghimtina. “The legal drafters have just completed removing all clauses in this bill referring to REDs,” Nghimtina told the House yesterday.The electricity distributors have sparked more than their fair share of controversy, especially at the coast, where the arrival of Erongo RED has gone hand in hand with an increase in the price of power.REDs have taken over electricity billing and earnings from municipalities, which leaves them without an income from electricity.In theory, the municipalities, which fall within the range of a RED, are shareholders of the distributors and are supposed to receive a percentage of the profits derived from electricity sales.That has hardly materialised, except with Nored, the first electricity distributor, which was established in the north-central region several years ago.The Windhoek Municipality has so far refused to become part of a RED, which has consequently not yet been established.Minister Nghimtina did not give a reason for the last-minute changes he will introduce today.However, it comes after a Swapo caucus meeting two weeks ago, The Namibian has reliably learnt.”The outcry and criticism about the REDs have brought about the change,” a Swapo member told The Namibian.”There will be a separate law drafted for them (REDs) and they will fall under the Ministry of Local, Regional Government and Housing in future,” the Swapo politician, who did not want to be named, added.There was however a difference of opinion about the REDs falling under a different line ministry and possibly being removed from the control of the Electricity Control Board (ECB).”The legal drafters have just completed removing all clauses in this bill referring to REDs,” Nghimtina told the House yesterday.The electricity distributors have sparked more than their fair share of controversy, especially at the coast, where the arrival of Erongo RED has gone hand in hand with an increase in the price of power.REDs have taken over electricity billing and earnings from municipalities, which leaves them without an income from electricity.In theory, the municipalities, which fall within the range of a RED, are shareholders of the distributors and are supposed to receive a percentage of the profits derived from electricity sales.That has hardly materialised, except with Nored, the first electricity distributor, which was established in the north-central region several years ago.The Windhoek Municipality has so far refused to become part of a RED, which has consequently not yet been established.Minister Nghimtina did not give a reason for the last-minute changes he will introduce today.However, it comes after a Swapo caucus meeting two weeks ago, The Namibian has reliably learnt.”The outcry and criticism about the REDs have brought about the change,” a Swapo member told The Namibian.”There will be a separate law drafted for them (REDs) and they will fall under the Ministry of Local, Regional Government and Housing in future,” the Swapo politician, who did not want to be named, added.There was however a difference of opinion about the REDs falling under a different line ministry and possibly being removed from the control of the Electricity Control Board (ECB).