City takes Ongos fight to court

The City of Windhoek has approached the High Court in a bid to block Ongos Valley Development’s (OVD) plan to produce its own electricity, arguing that it holds the sole right to provide power to all developments within the capital's boundaries.

Ongos approached the City in July 2019, indicating its intent to develop a virtual power plant (VPP) using renewable energy, utilising solar power as part of its plans to establish a green city.

OVD is situated on the north-western outskirts of Windhoek.

Electricity industry players have warned that the municipality stands to lose millions in potential revenue if Ongos gets its way.

There are also fears that if the City does not attempt to block Ongos’ plans, it could pave the way for other developers and businesses with the financial muscle to generate their own power, which could subsequently eat into the municipality’s electricity sales.

No mandate

The municipality further argues that mines minister Tom Alweendo, who granted Ongos the right to develop its own power generation plant, is not legally mandated to approve such requests.

The argument is contained in an affidavit filed in the High Court by City of Windhoek CEO Moses Matyayi on 22 August.

Alweendo is also accused of acting unlawfully after granting a power generation licence to Ongos last year, despite it falling within the bounds of the City.

Making his case for why the decision to grant OVD a generation licence was illegal, Matyayi argued that normal procedures were not followed.

“It ought to be the second respondent (Electricity Control Board) who should have taken the decision only after the first respondent (minister of mines) and after it had been given the opportunity to be heard by the applicant (Ongos). All this did not happen,” he said.

‘Unfair’ decision

In his affidavit, Matyayi argued the municipality received a letter informing it of the minister’s decision without being granted an adequate opportunity to respond to the request by Ongos.

“The decision is further unfair and unreasonable on the basis that after the first respondent wrote to the applicant on 15 June 2022, the applicant was still preparing its responses when, (suddenly) it received a response from the second respondent incorporating the first respondent’s unlawful decision,” he said.

In communication with the OVD developers, the municipality has long contended that it holds the rights to provide electricity within its boundaries and is able to provide end-users with electricity.

Within boundaries

City acting CEO George Mayumbelo indicated to OVD that council would be responsible for power generation within City boundaries.

“It should be noted that the proposed model of operations and maintenance of the distribution network by the developer was extensively deliberated, and council resolved not to support the proposal from Ongos Valley Development as it has the capacity to distribute electricity to the end-users in its distribution licence area.

“Council plans to take over the electricity distribution of all its developments in its licence area. It should further be noted that the licence area of the [City of Windhoek] was extended,” Mayumbelo said in a letter to Ongos, dated 23 June 2021.

Matyayi is arguing that a review of Alweendo’s decision be granted by the court.

Matyayi is represented by Gilroy Kasper, while OVD is represented by Appolos Shimakeleni.