Allexer Namundjebo
The Northern Regional Electricity Distributor (Nored) says that it has fully settled its debt of N$341 million with NamPower.
Nored acting chief executive officer Toivo Shovaleka said this week the debt, which had strained relations between the two entities, was cleared on 9 June 2025.
He described the amount as a historic debt that had built up over several years.
NamPower had previously suspended electricity supply to Nored due to the unpaid amount.
To resolve the crisis, Nored entered into a repayment agreement with NamPower in June 2023, which allowed it to gradually settle the debt.
“We are thus pleased to announce and inform all our key stakeholders that this historic debt with NamPower has been fully settled,” said Shovaleka.
He added that Nored’s account with NamPower is now open and in good standing.
The announcement comes amid ongoing concerns from NamPower about rising debt levels across its customer base.
In 2023, NamPower managing director Kahenge Haulofu disclosed that the utility was owed N$1.5 billion, with N$842 million overdue.
He warned that the growing debt was threatening NamPower’s sustainability and the country’s energy security.
In the same year, Haulofu named Nored as the first regional electricity distributor to be disconnected in phases for failing to honour its payments.
He had also said NamPower had offered various relief options, including instalment plans, interest waivers for accounts paid within 12 months, and extended payment terms from 14 to 20 days.
However, he said few customers responded to these offers, leading NamPower to revive its debt collection efforts.
He also suggested that new regional electricity distributors be established in southern Namibia to improve electricity management and skills development.
In response to mounting pressure, Nored acknowledged its debt in 2023 and said it was working toward a resolution.
Then-chief executive officer Fillemon Nakashole said the company’s board and management were actively engaging with NamPower to resolve the matter.
