The Minister of Finance and Public Enterprises Iipumbu Shiimi has on Tuesday summoned NamPower’s management and board to discuss how to avert the electricity suspension which was deployed in northern and southern parts of the country, as a debt recovery mechanism.
The meeting comes after NamPower disconnected various localities around the country that owe the utility at least N$1.5 billion.
In a letter addressed to NamPower’s board Chairperson, Daniel Motinga, Minister Shiimi highlighted that the Cabinet had given a directive to the national power utility not to proceed with power disconnection for the defaulting local authorities.
“Following the issuance of the Public Notices by NamPower announcing their intention to disconnect defaulting Local Authorities, the Ministry requested NamPower to apprise us with information pertaining to the debt settlement by defaulters resulting from the issuance of the Public Notices before instituting power suspensions,” Shiimi said.
“Nevertheless, NamPower has not responded to our request to date. Furthermore, the Ministry subsequently briefed Cabinet on the deteriorated debt situation of Local Authorities as well as the intention of NamPower to institute power suspensions against defaulting Local Authorities.”
Shiimi had called for a consultation with the Local Authorities and the Ministry of Urban and Rural Development before any further actions were taken, as he appealed for calm but to no avail.
“NamPower is being inundated with queries regarding its Debt Collection Plan, which involves the suspension of electricity supply to customers who are in arrears, a process that was implemented as of 5 June for Stage 1. NamPower would hereby like to inform the media that the Board and Management are engaging with all relevant stakeholders on the matter and will inform the media of the outcome of the consultations in due course,” NamPower’s board Chairperson Daniel Motinga told The Brief.
Motinga could however not state whether they will initiate stage two or halt the process until further notice.
Shiimi’s intervention was prompted by a Cabinet directive for NamPower to put on hold the planned power suspensions.
“On our end, we have called for a meeting with the NamPower Board and Management to obtain an explanation why they failed to provide us with the information we requested and comply with the Cabinet Directive, as well as to ensure compliance, going forward,” remarked Shiimi, while also appealing to Local Authorities with high debt to approach NamPower and make payment arrangements.
“This is important for the operations of NamPower to remain sustainable,” he charged.
On Monday evening, NamPower switched off electricity in eight regions under NoRED, including local authorities such as the Municipality of Rehoboth, Municipality of Mariental, Municipality of Karasburg, Aranos Town Council, Village Council Maltahohe, Gibeon Village Council, Bethanie Village Council, Tses Village Council, Koes Village Council, Leonardville Village Council, Berseba Village Council, Kalkrand Village Council and Stampriet Village Council Office.
NamPower’s Managing Director Simson Haulofu on Monday told The Brief that only N$174 million of the N$842 million owed by defaulting clients has been recouped so far, while the remainder is a national clientele debt including N$74 million in interests.
The planned power cuts in the first stage were intended to last for four hours, and on Tuesday, NamPower planned to effect stage two by increasing the downtime to eight hours, then 12 hours in stage three.
These measures were expected to continue as the days progress without any full payment, advancing to stages seven and eight, where the cut-off time will be adjusted to between 24 hours and 28 hours, respectively.
The power utility had issued a month’s notice to switch off defaulters.
