UNJUSTIFIABLE AWARD: The Electricity Control Board has advised against the award of a supply and distribution licence to the Ongos Valley Development (Pty) Limited.
UNJUSTIFIABLE AWARD: The Electricity Control Board has advised against the award of a supply and distribution licence to the Ongos Valley Development (Pty) Limited.

Alweendo overrides ECB verdict on Ongos

• Minister’s decision sets cat among pigeons
The minister wants the City of Windhoek to refund Ongos for its investment, or allow it to generate its own power.
Ogone Tlhage
Mines minister Tom Alweendo used his ministerial powers to overrule the electricity regulator on the controversial Ongos Valley Development’s (OVD) plan to produce its own electricity.

As details emerge about the matter, it turns out the Electricity Control Board (ECB) had initially recommended that the minister decline OVD’s application to acquire a distribution-and-supply licence, which would allow it to generate and sell electricity onwards to its end users - despite the settlement being within municipal boundaries.

The ECB, in a submission to Alweendo dated 22 April 2022, made known its opposition to OVD being granted permission to operate under the City’s licence, saying it was in a position to provide electricity to all end users within municipal boundaries.

“The City is in a position to supply OVD in accordance with the project’s timelines. The City was correct in insisting that cost recovery must be done through the customer-funded model. The objective of tariff harmonisation in the City’s distribution licence area will be negatively impacted by allowing OVD to charge a different tariff to recover the costs of the distribution-and-supply infrastructure,” the recommendations read.

Unjustifiably refused

Airing his reasons for the approval, Alweendo - in a letter dated 19 August 2022 - stated that OVD had unjustifiably been refused a licence by the City.

“My view is that [the City] has unreasonably refused OVD to operate under their distribution-and-supply licence.

“I have presented [the City] the opportunity to either compensate OVD for their investment or to allow OVD to operate under [the City’s] licence. No responses were received from the [City] on these two options,” Alweendo said.

15-year mandate

Granting permission to OVD, Alweendo said it would be allowed to operate under the municipality’s distribution-and-supply licence, on condition that it operate for a period of 15 years, or until such a time that it has recouped its investment.

OVD is also required to transfer its distribution assets to the City after 15 years, or at such a time that it has recouped its investment.

The minister added that a lack of communication from the City left him with no choice but to grant OVD with a generation licence, in a letter dated 31 October 2022 to then-mayor Sade Gawanas.

“I implored the City to pronounce itself on the matter at hand on or before 2 August 2022. Failure of which would result in me granting OVD permission to operate under the licence of the [City], as provided for under Section 34 (1) of the Electricity Act.

“Unfortunately, no communication was received from the City, leaving me with very little room but to grant OVD the permission,” he said.

The ECB informed OVD of the minister’s approval, saying it would be able to utilise the City’s generation-and-supply licence, effective 1 September 2022, for a period of 15 years.

Set it aside

“The minister of mines, under section 34 of the Electricity Act, has granted permission to OVD to operate under the distribution-and-supply licence of the [municipality]. The permission has been granted for 15 years as from 1 September 2022, or until such time OVD has recouped its investment - whichever comes first,” the ECB said.

ECB CEO Robert Kahimise refused to comment, saying the matter was sub judice.

The City council has, effective 11 September, applied for Alweendo’s decision to be set aside by the court. The council is represented by Gilroy Kasper, OVD by Appolos Shimakeleni and the ECB by Fisher, Quarmby & Pfeifer, while the mines ministry is represented by government attorneys.

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Namibian Sun 2024-09-20

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LaLiga: Leganés 0 vs 2 Athletic Club | Real Betis 2 vs 1 Getafe | Mallorca 1 vs 0 Real Sociedad Katima Mulilo: 25° | 39° Rundu: 20° | 39° Eenhana: 17° | 36° Oshakati: 15° | 34° Ruacana: 16° | 35° Tsumeb: 19° | 34° Otjiwarongo: 13° | 32° Omaruru: 14° | 32° Windhoek: 11° | 28° Gobabis: 9° | 30° Henties Bay: 11° | 18° Wind speed: 22km/h, Wind direction: W, Low tide: 06:23, High tide: 12:53, Low Tide: 19:02, High tide: 01:16 Swakopmund: 12° | 14° Wind speed: 22km/h, Wind direction: NW, Low tide: 06:21, High tide: 12:51, Low Tide: 19:00, High tide: 01:14 Walvis Bay: 11° | 17° Wind speed: 23km/h, Wind direction: N, Low tide: 06:21, High tide: 12:50, Low Tide: 19:00, High tide: 01:13 Rehoboth: 7° | 29° Mariental: 7° | 26° Keetmanshoop: 6° | 24° Aranos: 6° | 27° Lüderitz: 14° | 27° Ariamsvlei: 6° | 23° Oranjemund: 15° | 30° Luanda: 22° | 24° Gaborone: 11° | 17° Lubumbashi: 18° | 36° Mbabane: 8° | 9° Maseru: 3° | 13° Antananarivo: 11° | 28° Lilongwe: 21° | 31° Maputo: 14° | 15° Windhoek: 11° | 28° Cape Town: 10° | 21° Durban: 13° | 14° Johannesburg: 7° | 9° Dar es Salaam: 23° | 29° Lusaka: 21° | 34° Harare: 17° | 30° Currency: GBP to NAD 23.18 | EUR to NAD 19.49 | CNY to NAD 2.48 | USD to NAD 17.5 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.65 | ZWL to NAD 0.04 | BRL to NAD 3.18 | RUB to NAD 0.19 | INR to NAD 0.21 | USD to DZD 132 | USD to AOA 927.77 | USD to BWP 13.17 | USD to EGP 48.48 | USD to KES 128.48 | USD to NGN 1593.37 | USD to ZAR 17.52 | USD to ZMW 26.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1838.95 Up +1.41% | Casablanca Stock Exchange (CSE) MASI 14184.33 Up +0.68% | Egyptian Exchange (EGX) 30 Index 30937.69 Up +1.96% | Botswana Stock Exchange (BSE) DCI 9651.25 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 616.03/OZ UP +1.11% | Copper US$ 4.30/lb DOWN -0.0052 | Zinc US$ 2 883.50/T DOWN -1.82% | Brent Crude Oil US$ 74.91/BBP UP +0.03% | Platinum US$ 974.14/OZ DOWN -0.0087 Sport results: LaLiga: Leganés 0 vs 2 Athletic Club | Real Betis 2 vs 1 Getafe | Mallorca 1 vs 0 Real Sociedad Weather: Katima Mulilo: 25° | 39° Rundu: 20° | 39° Eenhana: 17° | 36° Oshakati: 15° | 34° Ruacana: 16° | 35° Tsumeb: 19° | 34° Otjiwarongo: 13° | 32° Omaruru: 14° | 32° Windhoek: 11° | 28° Gobabis: 9° | 30° Henties Bay: 11° | 18° Wind speed: 22km/h, Wind direction: W, Low tide: 06:23, High tide: 12:53, Low Tide: 19:02, High tide: 01:16 Swakopmund: 12° | 14° Wind speed: 22km/h, Wind direction: NW, Low tide: 06:21, High tide: 12:51, Low Tide: 19:00, High tide: 01:14 Walvis Bay: 11° | 17° Wind speed: 23km/h, Wind direction: N, Low tide: 06:21, High tide: 12:50, Low Tide: 19:00, High tide: 01:13 Rehoboth: 7° | 29° Mariental: 7° | 26° Keetmanshoop: 6° | 24° Aranos: 6° | 27° Lüderitz: 14° | 27° Ariamsvlei: 6° | 23° Oranjemund: 15° | 30° Luanda: 22° | 24° Gaborone: 11° | 17° Lubumbashi: 18° | 36° Mbabane: 8° | 9° Maseru: 3° | 13° Antananarivo: 11° | 28° Lilongwe: 21° | 31° Maputo: 14° | 15° Windhoek: 11° | 28° Cape Town: 10° | 21° Durban: 13° | 14° Johannesburg: 7° | 9° Dar es Salaam: 23° | 29° Lusaka: 21° | 34° Harare: 17° | 30° Economic Indicators: Currency: GBP to NAD 23.18 | EUR to NAD 19.49 | CNY to NAD 2.48 | USD to NAD 17.5 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.65 | ZWL to NAD 0.04 | BRL to NAD 3.18 | RUB to NAD 0.19 | INR to NAD 0.21 | USD to DZD 132 | USD to AOA 927.77 | USD to BWP 13.17 | USD to EGP 48.48 | USD to KES 128.48 | USD to NGN 1593.37 | USD to ZAR 17.52 | USD to ZMW 26.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1838.95 Up +1.41% | Casablanca Stock Exchange (CSE) MASI 14184.33 Up +0.68% | Egyptian Exchange (EGX) 30 Index 30937.69 Up +1.96% | Botswana Stock Exchange (BSE) DCI 9651.25 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 616.03/OZ UP +1.11% | Copper US$ 4.30/lb DOWN -0.0052 | Zinc US$ 2 883.50/T DOWN -1.82% | Brent Crude Oil US$ 74.91/BBP UP +0.03% | Platinum US$ 974.14/OZ DOWN -0.0087