1. Responsibility
    The Economic Regulation (ER) department is responsible for the effective regulation of the electricity supply industry through the provision of efficient economic and financial guidelines and advice to the Board and stakeholders.

    The department is responsible for the following;

    • Implementation of the Modified Single Buyer (MSB) market model, the development of the industry’s tariff systems and methodologies in line with Government Policies and Legislations.
    • Review calculate and determination of generation, transmission and distribution tariffs for the electricity industry and approval of revenue requirements.
    • Evaluates and assesses the impact of the ESI on the economy and the end consumers.
    • Create an enabling environment for private sector investment in the electricity industry.

    2. Activities under department

    • Implementation and monitoring of the Modified Single Buyer Market Model.
    • Advice on economic, financial and tariff related matters
    • Determine the regulated return for utilities
    • Determine generation, transmission and distribution tariffs by reviewing the submitted revenue requirements for cost effectiveness
    • Ensures tariffs proposed by licensees are in line with Government Policies and in line with applicable regulations and standards
    • Make recommendations to Exco, Board and Minister on tariffs matters
    • Draft guidelines for electricity generation, transmission and distribution tariff setting and review
    • Monitoring the impact of the electricity supply industry on the economy
    • Conduct financial and economic reviews for license application and determine applicable tariffs
    • Monitoring and promoting competition in the industry
    • Promoting investment in the energy sector
    • Protection of consumer interests, in terms of affordability and sustainability of electricity services
    • Address tariff related customer complains
    • External stakeholder interactions, including RERA (Current Chairperson of Economic Regulation Subcommittee

    3. Regulatory Tools


    3.1 Regulations

    3.1.1 Economic Regulations

    The objects of the Economic Regulations are –

    1. to ensure the efficient functioning and development of the electricity industry, efficient electricity provision; and security of electricity provision
    2. to ensure that electricity tariffs and charges allow licensees a reasonable rate of return in accordance with these Economic Rules and the Board’s tariff methodologies in order to assure that licensees can finance the electricity services and activities of their licensed undertakings.
    3. to establish an environment where the Board can effectively exercise control over, monitor and enforce the economic regulation of electricity

    link; http://www.ecb.org.na/images/docs/Rules_and_Regulations/Electricity%20Economic%20Rules%202016.pdf

    3.2 Rules

    3.2.1 MSB Market Rules (Legal drafters)

    The objects –

    1. to establish a regulated environment within which redistribution of electricity can take place in order to ensure the efficient conveyance and delivery of electricity under exempted circumstances
    2. to ensure that the interests of clients, supplying licensees and other electricity licensees operating in the same area as a redistributor are sufficiently protected as regards pricing, safety and standards on quality of electricity provision and service of electricity so delivered.

    link; http://www.ecb.org.na/images/docs/Rules_and_Regulations/Electricity%20Economic%20Rules%202016.pdf

    3.2.2 Resellers rules (Legal drafters)

    The objects –

    1. to establish a regulated environment within which redistribution of electricity can take place in order to ensure the efficient conveyance and delivery of electricity under exempted circumstances
    2. to ensure that the interests of clients, supplying licensees and other electricity licensees operating in the same area as a redistributor are sufficiently protected as regards pricing, safety and standards on quality of electricity provision and service of electricity so delivered

    link;http://www.ecb.org.na/images/docs/Rules_and_Regulations/Draft_Reseller_Rules_2018.pdf

    3.2.3 Net Metering Rules

    The objects –

    1. the generation of additional power into the national grid, reducing the investment requirements of utilities and conventional independent power producers
    2. to allow customer-generators to reduce their imports from distribution networks through generating for own consumption
    3. to allow customer-generators to export to distribution networks up to the customer-generators' imports from distribution networks
    4. the promotion of sustainable renewable energy sources, small scale investments, value addition and electricity market development

    link: http://www.ecb.org.na/images/docs/Rules_and_Regulations/Draft_Reseller_Rules_2018.pdf


    3.3 Frameworks

    3.3.1 Wheeling Framework

    The main purpose of the Wheeling Framework is to support the operationalisation of the MSB market fair and practical framework for the determination and implementation of wheeling services and charges for the use of transmission and distribution networks.

    Link: http://www.ecb.org.na/images/docs/Economic_Regulation/191125%20ECB%20Draft%20Wheeling%20Framework%20v4.0.pdf

    3.3.2 Balancing Framework

    The objective of the Balancing Framework is to recover the cost of providing balancing services from the parties who cause the need for the service in accordance with the ‘user-pay’ principle.

    Economic Regulation Documents