GRN, local authorities owe NamPower N$790m
Bulk energy supplier NamPower says it is owed a combined N$790 million by various government offices, local authorities and regional electricity distributors.Our sister publication, Namibian Sun, asked the utility to give a breakdown of the specific amounts owed to it by its large-scale customers in the aftermath of planned blackouts announced in March to encourage its customers to pay.
However, NamPower declined to share specific amounts owed to it, claiming that it did not have these figures on hand. Meanwhile, it is still encouraging customers to make arrangements to settle overdue accounts.
“NamPower continues to engage its customers on their overdue accounts and during these engagement meetings, NamPower encourages defaulting customers to offer instalment arrangements which they can honour to help reduce their outstanding debts,” the company said.
The power utility also announced that it was willing to waive interest charges on overdue accounts settled within 12 months. “The payment terms of customers were increased from 14 days to 20 days from the date of invoice. These offers still stand,” it said.
Govt begs for time
Finance minister Ipumbu Shiimi this week explained why the government implored NamPower not to cut power to local authorities, regional electricity distributors and municipalities, saying such a move would have catastrophic effects.
This was amid concerns that the state was interfering in the running of the power utility.
“In the case of NamPower, the government was not saying ‘don’t cut off electricity’; the government was saying ‘we need to have a conversation before you cut, we think we can solve this problem together because the implications of what you are going to do are so huge’,” he said.
Shiimi also downplayed suggestions that the government only tried to intervene when NamPower made public its plans, saying engagements started in 2022 already.
“The issue of outstanding debt, the conversation did not start when NamPower switched off the lights. The conversation already began in 2022, so NamPower was part of the conversation and, therefore, what needs to be done is a long-term solution - where you might look at government not only as a shareholder but as running the country responsibly for everyone,” he said.