NamPower directors resolved to carry on with suspensions to protect company and stakeholders
Power utility, NamPower on Wednesday confirmed that it received the Cabinet directive from the Minister of Finance and Public Enterprises to halt the suspension of electricity to defaulters, but the Board of Directors unanimously decided to exercise its fiduciary responsibilities as demanded by the Companies Act, to protect the company and its stakeholders.
“The Board of Directors and Management resolved to proceed with the disconnection plan because it is in the best interest of the financial sustainability of the company and for the sustainability of electricity supply in the country,” the utility said in a statement.
NamPower said disconnecting defaulting customers was the last resort after exhausting all existing interventions to collect long outstanding debts, as non-payment of debts detrimentally affects the company’s ability to supply electricity to the entire country on a sustainable basis.
“NamPower recognises that the unintended consequence of the sustained failure to collect dues from clients will result in all future borrowings for generation and transmission infrastructure being guaranteed by the sovereign, due to our inability to collect contractually,” the statement read.
Meanwhile, the utility once again pleaded with its defaulting customers to pay their dues to enable the company to continue delivering on its mandate to ensure the security of supply to the entire Namibia.
NamPower’s debt from its customers stands at N$1.5 billion, with an amount of N$842 million being overdue, while interest amounts to N$74 million, according to the company.
The utility earlier in May announced that it would suspend the electricity supply of defaulting regional and local authority distributors by 05 June, unless they settle their outstanding amounts.