Shiimi explains why NamPower cuts were halted
Finance minister Ipumbu Shiimi says government did not interfere in the running of NamPower, but rather wanted to map a way forward to avoid it from cutting electricity supply to regional electricity distributors, local authorities and other bulk customers.
He made the remarks at a Namibia Institute of Corporate Governance engagement recently. Shiimi in June ordered NamPower to abandon plans to cut power to defaulting customers.
Explaining the reasoning behind the order, he said government approached NamPower to find an amicable solution towards the power situation.
“In the case of NamPower, government was not saying ‘don’t cut off electricity’, government was saying ‘we need to have a conversation before you cut, we think we can solve this problem together because the implications of what you are going to do are so huge’,” he said.
Long-term solution
Shiimi also downplayed suggestions that government only tried to intervene when NamPower made public its plans, saying engagements already started last year.
“The issue of outstanding debt, the conversation did not start when NamPower switched off the lights. The conversation started in 2022 already, so NamPower was part of the conversation. Therefore, what needs to be done is a long-term solution - where you might look at government not only as shareholder, but as running the country responsibly for everyone,” he said.
It is imperative that NamPower not forge ahead with its panned power cuts while there are other options that can be pursued, Shiimi said.
“You have to balance the need [for] NamPower [to be] sustainable, but we also have to balance a responsible way of making sure NamPower is able to recover its money in a way that is not going to hurt people,” he said.
The power utility announced that it will cut 19 local authorities' power supply because of unserviced debt. At the time, the company indicated that it was owed N$1.5 billion.
He made the remarks at a Namibia Institute of Corporate Governance engagement recently. Shiimi in June ordered NamPower to abandon plans to cut power to defaulting customers.
Explaining the reasoning behind the order, he said government approached NamPower to find an amicable solution towards the power situation.
“In the case of NamPower, government was not saying ‘don’t cut off electricity’, government was saying ‘we need to have a conversation before you cut, we think we can solve this problem together because the implications of what you are going to do are so huge’,” he said.
Long-term solution
Shiimi also downplayed suggestions that government only tried to intervene when NamPower made public its plans, saying engagements already started last year.
“The issue of outstanding debt, the conversation did not start when NamPower switched off the lights. The conversation started in 2022 already, so NamPower was part of the conversation. Therefore, what needs to be done is a long-term solution - where you might look at government not only as shareholder, but as running the country responsibly for everyone,” he said.
It is imperative that NamPower not forge ahead with its panned power cuts while there are other options that can be pursued, Shiimi said.
“You have to balance the need [for] NamPower [to be] sustainable, but we also have to balance a responsible way of making sure NamPower is able to recover its money in a way that is not going to hurt people,” he said.
The power utility announced that it will cut 19 local authorities' power supply because of unserviced debt. At the time, the company indicated that it was owed N$1.5 billion.
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