UK needs post Brexit deals with Turkey, South Africa, not just EU: Ford

  • As Namibia is set to increase electricity tariffs by 8% July 1

Britain needs to strike a trade deal with Turkey and South Africa as well as with the remainder of the European Union when the country leaves the bloc, Ford’s Europe chief said on Wednesday.

“For Ford, it’s not only important for the UK’s agreement with the 27 countries but equally important are countries like Turkey and South Africa which hasn’t really been talked about,” Ford of Europe CEO Jim Farley told a London conference.

U.S carmaker Ford, which is Britain’s biggest automotive engine builder, makes vans in Turkey, which is not part of the EU but is in the EU customs union.

Farley also said it was looking at how to maintain the free movement of goods and people which could be inhibited under a hard Brexit deal involving tariffs.

“We are spending a lot of time thinking and talking about how we need to change our operations and what support we need from the government and other entities not only in the UK to make sure friction doesn’t get created,” he said.

In the meantime, Namibia’s Electricity Control Board (ECB), on Tuesday said that after conducting a due regulatory process, it had approved eight per cent tariff increase effective from July 1.

The electricity regulator Chief Executive Officer, Foibe Namene said that the increase translates to an effective bulk tariff increase from 1.49 Namibian dollars (0.11 U.S. dollar) to 1.61 Namibian dollars per kWh.

According to Namene, the increase would suffice for power generating firm Nampower to cover its allowed operating costs and also fulfil its financial obligations.

“The increase is applicable to Nampower bulk customers which are Regional Electricity Distributors (REDS), local authorities, regional councils and mines”, she stated.

Namene said that the ECB considers the eight per cent tariff increase to be the optimum increase for Nampower and the customers.

“Should the increase be lower than eight per cent it means that a large portion of the under recovery will be deferred to the following year which will be a burden on the future tariff adjustments”, she said.