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Cenored revenue at N$625 million for 2021/22

The Central North Regional Electricity Distributor (Cenored) recorded revenue of N$624,9 million during the 2021/22 fiscal year, to the end of June 2022.

This is an increase of 5,9% from revenue of N$590 million the previous year, the company has announced in its 2022 annual report.

The increase in revenue is despite several revenue losses from fraud, illegal connections and cable theft – which continues to be a challenge, although substantial strides have been achieved in reducing cable loss, noted Cenored.

Cenored finance and commercial services executive Melissa Kahimise said in the report the increased revenue is predominantly attributable to an increase of 5,2% in units of electricity sold, compared to the previous financial year.

Kahimise noted that the company earned a gross profit of N$219 million, which is an increase of 3,1% compared to the previous financial year, when the company recorded a gross profit of N$212 million.

For the financial year ended 30 June 2022, the company achieved an after-tax profit of N$5,4 million, while in 2021 it recorded a net profit of N$17,6 million.

Included in total revenue is non-cash new connections revenue, which increased from N$2,6 million to N$5 million. Electricity sales increased by 5,5%, with a growth of 5,2% in units sold, and the average approved tariff adjustment for the 2022 financial year was 1,1%, Kahimise said.

Before finance charges and taxes, operating profit for the year was N$10 million, compared to N$19 million in 2021.

“Profit margins remain under pressure due to subsidisation of social tariffs, increase in costs due to inflation, and the impact of the prevailing decrease in global economic activities,” Kahimise stated.

Kahimise said the main source of revenue is sales of electricity. Post-paid revenue increased by 7%.

“Prepaid energy increased by 3%, as residential consumption and growth patterns were not impacted by the economic downturn.”

“Cenored’s business post-paid customers contribute 39% towards revenue, followed by large power users, which contribute 34%.”
The majority of customers are on pre-paid arrangements.

EXPENSES

Cenored’s operating expenses increased by 5% to N$207 million, from N$196 million in 2021. Kahimise said this rise was brought on by inflationary increases passed to customers from suppliers.

“The company has taken measures to monitor and contain operating costs. Although it is challenging, management is committed to continue containing costs where possible.”

Cenored board chairperson Moses Matyayi noted that Cenored continues to regard its peri-urban electrification programme as a strategy to grow its customer base.

At the time, more than 377 households were connected to the grid under the programme, with a further 123 households that were due to be electrified in the first quarter of 2023.

“This brings the total investment in electrification for the 2021/22 financial year to N$10 million,” Matyayi said.

To facilitate electrification efforts, Cenored developed an electrification policy to guide how areas requiring electrification are identified, how funding is sourced, as well as the actual project execution.

The number of unplanned outages and interruptions decreased and distribution losses were at 11%.

Operating or maintenance costs for the period of July 2021 to June 2022 were recorded as N$17,4 million, compared to a budget of N$17,6 million.