The Electricity Control Board (ECB) has lauded NamPower’s endeavours to introduce bulk prepaid metres to various Regional Electricity Distributors (REDs) and other clientele, saying it is a sustainable move.
The Chief Executive Officer of the ECB Robert Kahimise said the planned prepaid system will enable the power utility to reduce its debtors’ book.
“It is one of the sustainable interventions that will allow NamPower to reduce their debtors’ book, and deal with debt defaulters,” he said.
“From our side as ECB, it is fully supported, because local authorities and whoever the licence distributor, should now be to provide sufficient funds for what they think they can use. So if it is implemented, it is a sustainable way to deal with the unfortunate situation that arose a few months ago.”
Queried on whether the metering system will have an impact on pricing, Kahimise said “there will be no price effect, as the current and existing pricing and tariff model will still apply.”
Kahimise’s remarks come as the national power utility has announced plans to introduce a prepaid electricity system in various areas, an irregular stance that was borne following a protracted process in which NamPower had to cut power to defaulting clients as the debt stood at a staggering N$1.5 billion.
At the time, the ECB CEO had lamented NamPower’s decision to cut power, saying it was a self-implication situation as it [NamPower] failed to address the matter earnestly before the debt ballooned to crisis point.
The power utility aims to convert all its distribution customers to prepaid meters by July 2025. This will see electricity distributors now expected to pay upfront for their electricity supplies, addressing the ballooning debts owed to NamPower.
The project will be implemented in phases, starting with small power users (supply points with a capacity of less than or equal to 75 kilovolt-amperes, or kVA) and followed by large power users (supply points with a capacity of 100kVA or more).
NamPower is also set to embark on stakeholder engagements, with meetings scheduled for Gobabis, Windhoek, Mariental, and Keetmanshoop next week.
The national power utility noted that the comprehensive prepayment system installation project involves the implementation of prepaid meters for all its distribution customers.
“This initiative harnesses modern metering technology to improve account management and provide a more efficient response to customer requests regarding the transition to a prepayment system,” NamPower said in a notice.
