Municipalities and SOEs Default Leaving NamPower N$912m Owed

1
Municipalities and SOEs Default Leaving NamPower N$912m Owed
Municipalities and SOEs Default Leaving NamPower N$912m Owed

Africa-Press – Namibia. Several local authorities, state-owned enterprises (SOEs) and regional electricity distributors have defaulted on repayment arrangements with NamPower, leaving the national power utility owed a total of N$912 million.

Electricity Control Board (ECB) chief executive Robert Kahimise said local authorities and state-owned enterprises in breach of repayment agreements account for N$557 million of the outstanding debt as at 25 November 2025.

“NamPower is currently owed a total of N$912 million across various entities. Local authorities and state-owned enterprises in breach of repayment arrangements account for N$557 million as at 25 November 2025,” Kahimise said.

Mariental Municipality according to the ECB is the largest defaulter, with N$233.29 million outstanding.

It is followed by Gobabis Municipality, which owes N$70.2 million, Karasburg Municipality with N$59 million, Aranos Town Council with N$58 million, Maltahöhe Village Council with N$34 million, Gibeon Village Council with N$24 million and Bethanie Village Council with N$21 million.

Kahimise said local authorities operating under bulk prepayment arrangements collectively owe a further N$210 million.

He highlighted Rehoboth Town Council as a key concern, noting that it has been on a bulk prepayment system since May 2024 but currently carries a negative balance of N$12 million, a situation that could result in immediate electricity supply disruptions.

He said an additional N$72 million is owed by local authorities, regional councils, government offices, regional electricity distributors and state-owned enterprises that do not have formal repayment arrangements. Among the largest amounts in this category are Lüderitz Town Council with N$22 million, Keetmanshoop Municipality with N$20 million and the ||Kharas Regional Council with N$10 million.

Kahimise also said NamPower is owed N$70 million by Angola’s utility company, RNT, reflecting cross-border exposure within the southern African electricity market.

“We mentioned it even before. Some of them are buying at a dollar, as an example, and selling at 80 cents. It should not be viable business. These are the challenges we are facing, and that risk contributed to these debts, which are also indirectly affecting and impeding the execution of the national mandate,” he said.

He said many local authorities have already migrated to prepaid electricity systems, with future supply arrangements expected to follow the same model.

Kahimise said Mariental is next in line to be placed on a prepayment system, if it has not already been moved to that regime.

He explained that the prepayment system ensures payments are made directly at the intake point, guaranteeing that the supplier is paid.

He warned that if councils fail to load sufficient electricity units, the system will automatically switch off, describing this as a worst-case scenario.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch.

It’s an essential way to stay informed. Subscribe and join our newsletter community.

For More News And Analysis About Namibia Follow Africa-Press

LEAVE A REPLY

Please enter your comment!
Please enter your name here