Martin Endjala
The Electricity Control Board has reiterated that it will not support any debt collection plan that compromises lifesaving services and people’s livelihoods going forward.
“In the future, any debt recovery plan by any licensee which compromises the lifesaving services and interruption to customers in good standings will not be supported by the ECB,” said the ECB Chief Executive Officer, Robert Kahimise in a statement.
Kahimise’s position follows NamPower’s announcement last month, about its debt collection plan to disconnect defaulting customers’ electricity as a measure to collect debt owed to it which stands at N$1.5 million, if defaulters do not pay or make payment arrangements before 31st of May 2023. Nampower in its initial announcement said it will initiate stages of power suspension as from the 5th of June 2023.
Following recent events of power outages in the Northern and Southern regions, Central and some parts of the West and Eastern regions, Namibians vented their frustration and demanded that NamPower be called to order.
As a result, Cabinet directed the Utility to suspend its plans, which saw NamPower issuing a statement on the 12 of June that it will halt its debt collection plans until the end of August 2023, while the government tries to find an amicable solution.
Kahimise said that ECB has engaged all affected distribution licensees as per their licensing conditions in terms of service delivery, safety and setting of Nampower’s outstanding debts and it will continue the engagement processes.
Furthermore, the ECB said it noticed with concern that interruptions pursuant to the implementation of NamPower’s Debt Collection Plan have caused immeasurable damage to the economy and interrupted critical and lifesaving services such as medical services and caused hardship to electricity consumers.
Additionally, these interruptions Kahimise says will negatively impact economic activities and may even increase the inability of customers to pay bills as a result.
Therefore, the ECB understands the frustration of customers who have a good standing or have payments up to date who were unfairly affected by the measures taken by NamPower.
The CEO explained that the ECB’s role is to balance the interests of all stakeholders which includes electricity customers, electricity licensees and electricity supply industries.
Meanwhile, the ECB has been invited by the Ministry of Urban and Rural Development to commit to discussing the matter at hand. It also commended government efforts to intervene and hopes that a lasting solution will be reached.
The ECB called on all defaulting customers to pay their dues for the sustainable supply of electricity in the country, despite government interventions.
The ECB has urged distribution licensees to implement strict credit control policies to ensure that electricity supply to non-paying customers is immediately discontented to ensure prompt payment by consumers, and the revenue generated so be paid to NamPower and not be used for other non-related electricity purposes by the distribution licensees.
Moreover, prior to the next tariffs, the ECB said that it will thoroughly engage NamPower and stakeholders to review and to ensure the optimisation of cost structures and operational efficiency targets ensure that all licensees reliably and efficiently supply electricity at affordable tariffs for their customers.
