Namibia’s power utility, NamPower, will continue with its plan of disconnecting electricity supply to defaulting customers although the company has received an order from the country’s political leadership for it to stop the plan.
In a letter addressed to the chairperson of the Board of NamPower Mr Daniel Motinga, on 5 June 2023, the Minister of Finance and Public Enterprises Mr Ipumbu Shiimi said that “the Cabinet has issued a directive for NamPower to put on hold the planned power suspensions pending further consultations between the Ministry of Finance and Public Enterprises, Ministry of Urban and Rural Development, and Local Authorities.”
However NamPower, in a statement issued on 7 June 2023, said that despite receiving the directive from Cabinet the company will go ahead with its decision to disconnect power supply.
“After due consideration, the Board of Directors unanimously decided to exercise its fiduciary responsibilities towards the company and to protect the interest of the company and stakeholders,” NamPower said.
“Moreover, the Board of Directors and Management resolved to proceed with the disconnection plan because it is in the best interest of the financial sustainability of the company and for the sustainability of electricity supply in the country.
“Disconnecting defaulting customers was the last resort after exhausting all existing interventions to collect long outstanding debts, as non-payment of debts detrimentally affects the company’s duty to supply electricity to the entire country on a sustainable basis.
“NamPower recognises that the unintended consequence of the sustained failure to collect dues from clients will result in all future borrowings for generation and transmission infrastructure be guaranteed by the sovereign, due to our inability to collect contractually.
“NamPower uses this opportunity to once again plead with its defaulting customers to pay their dues to enable the company to continue delivering on its mandate, that of ensuring security of supply to Namibia.”
In the photo: NamPower this week started cutting power to defaulting customers.
