Mines and Energy Minister Natangue Ithete faced questions from fellow MPs around expected electricity price hikes, particularly how low-income households are to cope.

Ithete highlighted the fact that his ministry approved only a 3.8 percent price hike, whereas Nampower had initially proposed 17.44 percent.

"It is a real concern that an increase in electricity tariffs will adversely affect the Namibian household, especially low-income families; however, it is important to highlight that last year, as I indicated through government intervention, the tariff increase was subsidised to avoid its adverse impacts on livelihoods. While such subsidies provide temporary relief, reliance on them is not sustainable in the long run."

Ithete shared that the National Integrated Resource Plan was implemented to address the long-term affordability of electricity through improving local generation capacity.

This would reduce reliance on electricity imports, he said, which are subject to external cost fluctuations.

"In the medium to long term, this will stabilize electricity prices and make electricity more affordable for consumers, particularly low-income families. Regrettably, until we significantly reduce electricity imports, tariff increases may be necessary to ensure a financially sustainable electricity sector."

He added that the government is exploring measures to relieve specifically low-income households via targeted subsidies while encouraging and promoting energy efficiency programmes to ensure conservative use and costs.