The City of Windhoek (CoW) is set to approach its lawyers after Mines and Energy minister Tom Alweendo granted Ongos Valley the right to operate an electricity distribution company in its housing development despite its objections.
The municipality argues the approval granted by the Mines and Energy minister will have financial implications on the side of the Council and will also set a bad precedence as it has previously received similar requests from housing developments to operate and maintain their own electricity infrastructures, which were denied.
“The Council noted that although the decision by the minister is in line with the provision of Section 34 of the Electricity Act, 2007 (Act 4 of 2007), it was taken without consultation and disregarded Council’s objections to the Electricity Control Board, which makes it unfair towards the Council.
“The Municipal Council of Windhoek has approved for City of Windhoek to seek a judicial review of a decision by the Minister of Mines and Energy to grant permission to Ongos Valley Development Electricity Distribution Company to operate under the distribution and supply licenses of the Municipal Council of Windhoek,” the municipality said.
This comes as plans, which CoW has already objected to, are being advanced to incorporate Windhoek into a central regional electricity distributor (RED) which will include Khomas, Omaheke and Otjozondjupa South regions.
The municipality has also argued the RED development will impact its revenues and residents through high electricity bills.
The Ongos Valley Development wants to establish an Ongos Valley Development Electricity Distribution Company which will own the electrical assets and operate the electricity distribution business within the township.
Ongos Valley is a mixed-use township located 14 kilometres away from the city centre, which is targeting to build a total of 28,000 housing units in 20 years.
Over 350 houses will be handed over to new homeowners later this year as the first batch of the 4,500 units envisaged to be built in the next five years.
Mines and Energy ministry officials declined to comment until the government department has received a legal opinion.
