Approved tariffs will generate sufficient revenue for distribution licencees – ECB
The Electricity Control Board (ECB) recently warned that a return of nationwide electricity interruptions under the implementation of national utility NamPower’s debt collection plan would negatively impact economic activity while at the same time urging all customers to pay their bills.
The ECB further urged distribution licencees to implement strict control credit policies to ensure that electricity supply to non-paying customers is immediately discontinued to ensure prompt payment by all customers and that the revenue so generated is paid over to NamPower and not used for other non-electricity-related purposes by the distribution licensees.
In a statement issued last Friday on NamPower’s debt collection plan, the ECB Chief Executive Robert Kahimise emphasized that the regulator is aware of the current level of electricity tariffs in the country.
According to him, the ECB-approved tariffs generate sufficient revenue for distribution licencees to settle their NamPower bills and ensure a safe and dependable electrical power supply to their customers.
Furthermore, he pointed out that NamPower’s debt collection approach may cause immeasurable harm to the economy as well as disrupt important and lifesaving services such as medical services and create hardship to electricity customers if it continues.
“Interruptions negatively impact economic activity and may even increase the inability of customers to pay bills as a result. The ECB shares the plight of those customers who are in good standing or who are on prepayment and who were unfairly affected by the measures taken by NamPower. In the future, any debt recovery plan by any licencee that compromises lifesaving services and interruption to customers in good standing, will not be supported by the ECB,” read the statement.
The ECB further noted that to preserve a viable and sustainable electricity supply, it is significant to recognize that all stakeholders have rights and obligations to one another.
However, distribution licencees, including NamPower, have to ensure a reliable supply of electricity to their customers, collect payment from their customers and ensure that monthly invoices from the power utility for electricity supplied to the distribution licensees are paid in full, as NamPower has to pay its suppliers of electricity as well, said Kahimise.
Kahimise further explained that the ECB engaged all affected distribution licensees in terms of service delivery per their licensing conditions and that the power utility’s current problem stemmed from its reluctance to strictly implement its credit control policy as well as distribution licencees’ failure to fully settle their NamPower invoices on time, which occurred over a long period.
Meanwhile, the ECB heaped praise on the government’s positive intervention, which resulted in NamPower delaying its debt collection strategy until the end of August this year.
Finally, the ECB stated that it would thoroughly engage NamPower and other licencees before its upcoming tariff review to ensure the optimization of cost structures and meeting operational efficiency targets to ensure that all licensees reliably and efficiently supply electricity to their customers at affordable tariffs.
