NamPower says its sustainability is not dependent on the current pursuit to recover N$1.5 billion owed by clients.
The national utility’s Managing Director Kahenge Simson Haulofu shrugged off notions that NamPower is cash-strapped.
Haulofu said the power utility’s engineered debt recovery was not due to the persistent load-shedding in South Africa where NamPower imports 100 megawatts (MW).
“…this is just a normal procedure which we also undertook in 2021 to collect what belongs to us, as we need such funds to be reinvested and finance our business operations. This does not mean, NamPower is broke, we are not broke and remain sustainable,” he said.
“We just need what is ours, because there is no way one expects us to continue providing electricity to clients for free, and also we need to use such funds to transact our electricity supplement we source from SADC pool, Zambia or Zimbabwe.”
Namibia imports 100MW from Eskom, 180MW from Zambia’s Zesco and 80MW from Zimbabwe. Meanwhile, the electricity demand for Namibia stands at 670MW.
Haulofu is adamant that NamPower has not failed in any way in recouping debts. This is after the Electricity Control Board (ECB) last week raised concern that the country’s power utility has not been diligent with debt management and general revenue collection.
“We have not failed in any way. We have engaged clients in the least manner to find an amicable solution. Our policies are clear and this what we are doing is in accordance with the agreements entered into,” the MD said.
“NamPower further offered to waive interest charges on overdue accounts settled within a 12-month period, as well as to increase the payment terms of all customers from 14 days to 20 days from the date of invoice. With the re-introduction of the Debt Collection Plan, we are offering the same again, and in addition, an incentive to write off the interest portion of the outstanding debt accumulated over the preceding 12 months. The total interest being waivered is N$74 million,” Haulofu added.
Haulofu has promised the nation that NamPower has the capability to supply electricity without any interruption and will continue to do so.
“We have been powering this country without fail, and we are still capable, thus we shall continue doing so. As it stands, we have not been informed by any of our supplement power suppliers of any possible interruption. In the case of South Africa, when it does load shedding, we are also shedded, and this is not something new, as it has been part of the bilateral agreement. We have the capability, and when something of that nature happens, you will hear the engines running as our power stations (back-up) across the nation,” he assured.
His statement concurs with ECB’s that the nation is guaranteed of lights shining bright for a 12-month period without failure or fear.
