NamWater is in the process of installing pre-paid water meters in 15 towns which have struggled to service their debts with the water utility, which is currently owed more than N$1.4 billion in total by its customers.
Although prepaid water meters have already been rolled out in Rundu, Rehoboth and Keetmanshoop Town Council, NamWater is currently in the process of resolving some legalities over its plan, including concluding contracts with the towns before the system is activated.
“A pre-paid water system enables a customer to pay money equivalent to the amount of consumption. Failure to honor such a payment, the system will cut the water supply automatically. The prepaid system ensures that funds are recouped timeously to ensure provision of services by paying end suppliers timeously,” the utility said.
In the case of Rundu, which had its water supply cut over non-payment, the utility said it had resolved to offer the town N$2 million in credits to ensure the town has access to water.
“Various remedies and assistance were and continue to be granted to towns such as Rundu in order to help remedy the situation.”
NamWater said its current tariff is not reflective of its actually cost of providing water in the country.
“The tariffs granted by Cabinet do not cover the true cost of water supply and there are some years when tariffs proposed by NamWater to Government are not granted. The Corporation operates on full cost recovery. This means that NamWater is mandated to recover cost of water provision from customers such as municipalities and Town Councils.”
