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NamPower moots prepaid bulk electricity supply

May 16, 2023
NamPower moots prepaid bulk electricity supply

The national power utility NamPower is planning to deploy the use of prepaid meters in supplying bulk electricity to various clients in the near future, to avert debt accumulation.

This comes as clients owe the utility a combined N$1.5 billion of consumed electricity, of which Northern Region Electricity Distributor (Nored) owes 23%, followed by Rehoboth municipality 10%, City of Windhoek 9% and ErongoRed 5.6%.

Of the amount, a total of N$712 million is what defaulters who face the axe are owing, plus an additional N$74 million in interest, while the remainder of N$842 million is composed of the current outstanding balance for this month.

This, the Managing Director, Kahenge Simson Haulofu, said has negatively weighed on the power utility in recouping dues, which in its absence jeopardise NamPower's operations and sustainability to continue delivering the desired service, hence the need to devise new collection strategies.

"Prepaid bulk electricity is something we are considering, even though this is an expensive exercise. However, we believe the use of technology will be the only way we can solve the problem, even though it is a costly exercise. We shall install prepaid meters at our transmission stations supplying our clients. This is under consideration," Haulofu said when responding to media queries, as NamPower remains adamant about suspending electricity to defaulting customers beginning on 5 June. 

At the media briefing, the national utility was clearing the air following a recent announcement that it will be suspending electricity to 19 local authorities, //Kharas Regional Council, Nored and Central Regions Electricity Distributor and Okahandja joint venture (Cenored), if they fail to settle the owed amount in the preceding 12 months in full by end of May.

NamPower had offered to delist such entities and also waive interest. Cenored-Okahandja JV and Lüderitz Town Council, are listed after having made payment arrangements, announced Haulofu. 

Meanwhile, NamPower Chief Financial Officer, Michael Gotore said, electricity suspension which starts from four hours a day and progresses to 28 hours, is the last resort after continued client engagements and failed repayment agreements.

"It is quite a difficult decision to make, as we know the implications of switching the power off, hence we try to engage. Most of the time clients come with payment plans but later default, then at the end, we are left with no other option but to effect this," Gotore responded when asked why NamPower failed to take necessary steps while debt levels were still low.

"We first dispatch a market model that is cheaper, that can work for all, which includes consistent engagement and notifications, and when these fail the only option is to recover what is due to us. Nored, is the first RED in history to come close or whose electricity will be cut-off. It is a difficult decision which is necessary, even though we take cognisance of thousands of customers to be affected," Haulofu said.

Asked whether those with prepaid and up-to-date accounts, falling in under the REDs or local authority, the MD said, NamPower only deals with clients to whom they supply bulk electricity, thus has no mandate to pursue end-user clients, even though they will be victims. 

"That is why we talk about prepaid, we only end with either the RED or Local Authority who we supply power to, and it is upon them to settle their balance so that their clients do not suffer," he said.

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Last modified on Wednesday, 17 May 2023 18:51
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