NamPower in wait and see over debt plan

Chamwe Kaira

Power utility, NamPower would not say this week whether it still expects to recover billions owed to it by local authorities across the country by the end of August as initially planned after it agreed to a government intervention plan over the matter.

“As indicated in the latest Media Release of 12 June2023, NamPower and the Ministry of Finance are in consultation on the interventions put in place by Government for the settlement of the overdue amounts. Thus, we cannot at this stage provide the amount that we expect to collect,” said Tangeni Kambangula responding to questions by Observer Money.

When asked if the debt recovery plan may go beyond the August, Kambangula said: “We cannot pre-empt.”

Commenting on what will happen if NamPower is not satisfied with the debt collection at the end of August, she said the company would not pre-empt what will happen after August.

NamPower had earlier threatened to discount defaulting local authorities before announcing that its board and Management engaged in a consultative meeting with the Minister of Finance and Public Enterprise on 8 June 2023.

The company government’s programme to implement needed measures has been put in motion and will run until end August 2023. The Minister will furthermore make necessary recommendations to Government before the end of August on the matter.

“Consequently, the NamPower Board of Directors has resolved to put NamPower’s plan to disconnect defaulting customers in abeyance until the end of August 2023.”

NamPower’s debt from its customers stand at N$1,5 billion with an amount of N$842 million being overdue.

NamPower had earlier offered to waive interest charges on overdue accounts settled within a 12-month period, as well as to increase the payment terms of all customers from 14 days to 20 days from date of invoice. With the re-introduction of the Debt Collection Plan, the company had offered the same again, and in addition an incentive to write off the interest portion of the outstanding debt accumulated over the preceding 12 months to customers who settle their outstanding amount in full on or before 31 May 2023.

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