The Electricity Control Board has expressed concern over the interruptions caused by the recent implementation of NamPower's debt collection plan, as they caused "immeasurable damage to the economy".
The ECB said the interruptions have also affected critical services such as medical and caused hardship for electricity consumers. The ECB acknowledges the negative impact on economic activity and the potential increase in the inability of customers to pay bills as a result.
The regulator said it does not support any debt recovery plan by any licensee that compromises lifesaving services or disrupts customers in good standing.
It, in fact, said NamPower's failure to strictly implement its own credit control policy, and secondly, the failure of distribution licensees to fully settle their NamPower invoices on time over an extended period caused the chaos.
"Interruptions negatively impact economic activity and may even increase the inability of customers to pay bills as a result. The ECB shares the plight of those customers who are in good standing or who are on prepayment and who were unfairly affected by the measures taken by NamPower. In future, any debt recovery plan by any licensee that compromises lifesaving services and interruption to customers in good standing, will not be supported by the ECB," read the statement by ECB.
This situation poses a risk to the security of electricity supply in Namibia, as it could lead to a shortage of electricity needed to meet the country's demand.
Last month, while addressing a media briefing, NamPower managing director Kahenge Haulofu said the corporation was owed a staggering N$1.5 billion, with N$842 million being overdue. He stressed it is important to collect what is owed for the sustainability of the business and that of the country.
In a statement regarding NamPower's debt collection plan and the recent power supply interruptions to defaulting distribution licensees, on 5 June 2023, NamPower implemented its approved debt collection plan, resulting in power disruptions for at least two hours between 17h00 and 21h00. The purpose of this plan is to recover outstanding debts.
However, in a communication on 12 June 2023, NamPower announced the suspension of the further implementation of the plan until the end of August 2023. This decision aims to allow the government sufficient time to implement necessary intervention measures aimed at assisting NamPower in collecting the outstanding debts owed by its customers.
NamPower, as a bulk electricity supplier, has the responsibility to ensure a reliable supply of electricity to all its customers, including mines, transmission customers, regional electricity distributors, local authorities, regional councils, and farmer schemes. It is also obligated to efficiently collect billed electricity accounts in line with its credit control policy.
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It is important to recognise the benefits derived from NamPower's credit rating, which should not be underestimated.
The ECB said its role is to balance the interests of all stakeholders in the electricity supply industry, including electricity consumers, licensees, and other industry stakeholders.
The ECB-approved tariffs provide sufficient revenue for distribution licensees to settle their NamPower bills and ensure a safe and reliable electricity supply to their customers. Licensees have an obligation to recover electricity payments from their customers, ensuring the settlement of NamPower bills and the proper operation and maintenance of their networks.
The ECB also commended the positive intervention by the government, which led to NamPower's decision to suspend the debt collection plan until the end of August 2023.
It said in the statement, it hopes a lasting solution will be reached by that time.
Additionally, the ECB has been invited to participate in a committee established by the Ministry of Urban and Rural Development to further investigate and address these matters.
