NamPowerDebtCollectionPlanCausesPowerDisruptionsandEconomicConcerns

Eileen van der Schyff

In a recent press release, Namibia Power Corporation (NamPower) announceditsDebtCollectionPlanaimedatrecoveringoutstandingdebts exceeding N$1 billion. As part of the plan, power supply interruptions wereimplementedonJune5,2023,affectingelectricityconsumersinthe areas of defaulting distribution licensees. During a four-hour window between17:00and21:00,residentsexperienceddisruptionsintheirpower supply.

Followingpublicbacklash and concerns regarding the economic impact, NamPower issued a subsequent communication on June 12, 2023, revealing the suspension of theplanuntiltheendof August 2023 This move was intended to allow the government enough time to implementinterventionsto assist NamPower in recovering the owed funds from its customers. The issue at hand originates from two main sources: NamPower's failure to strictly implement its own credit control policy and the consistent delay in settlement of NamPower invoices by distribution licensees over an extended period. The potential consequencesincludearisk to the country's power supply security, hindering NamPower's ability to purchase or generatesufficientelectricity to meet national demand.

The Electricity Control Board (ECB) holds the responsibility of balancing the interests of all stakeholders within the Electricity Supply Industry ECB-approved tariffs provide enough revenue for distribution licensees to settle their NamPower bills and ensure a safe and reliable electricity supply totheircustomers. However, interruptions caused by NamPower's Debt Collection Plan have had severe consequences for the eco- nomy, including disruptions to critical services like medical care and hardships for electricity consumers The ECB emphasiseditsrefusalto support any debt recovery plan that compromises essential services or disrupts customersingoodstanding. Acknowledging the positive intervention by the government, which led to the suspension of the Debt Collection Plan,theECBhopesfor a lasting solution by the endofAugust2023.The ECB has also been invitedtoparticipateina committee established by the Ministry of Urban and Rural Development to address theissuesathand. In conclusion, the ECB urges all customers to pay for the electricity they consume and advises distribution licensees to implement strict credit control policies. This would ensure immediate discontinuation of electricity supply to non-paying customers, prompt payment by all customers, and the proper allocation of revenue to NamPower

The ECB also plans to engage with NamPower and other licensees to optimise cost structures, improve operational efficiency, and ensure the reliable and affordable supply of electricity to customers in future tariff reviews.

NamibiaandDutchPartnersSignAgreement forGreenHydrogenProjects

The Government of Namibia has reached significant milestones in the development of its green hydrogen sector by signing a Memorandum of Understanding(MOU)withacoalitionofDutchpartnersonTuesday,20 June. The agreements include the establishment of Namibia's sovereign wealth fund, SDG Namibia One, and the government's option to take a 24% interest in the first project by Hyphen, a green hydrogen developmentcompany

A press release issued by Lot Ndamanomhata

Manager Corporate Communications&ICT Environmental Investment Fund of Namibia (EIF) reveals these achievementsalignwith Namibia's Harambee Prosperity Plan II (HPPII) and the Southern Corridor Development Initiative (SCDI), whichaimtoharnessthe potential of the green hydrogen sector for the country's benefit. The Government has strategically sought partnerships with the European Union (EU), the Netherlands, and Germany to mobilise funding without burdening the national budget SDG Namibia One, a blended financing vehicleforgreenhydrogen investments, will be managed by Nam-H2 Fund Managers, a partnership between Namibia's Environmental Investment Fund, Climate Fund Managers, and Invest International from the Netherlands Initial funding of N$850 millionwillbeprovided as a grant by Invest International,withplans toraiseadditionalfunds locallyandglobally

Inaddition,anMOUhas been signed between Namport, the Port of Rotterdam, Hyphen, Gasunie, Nampower, and Invest International to collaborate on the development of the SCDI. The SCDI aims to be a sustainable hydrogen development spanning the Kharas Region, with an annual production capacity of three million tonnes of green hydrogen The project will initially focus on the Port of Lüderitz, with plans for hydrogen pipelines to connecttoSouthAfrica in the future The successful establishment of SDG Namibia Oneandtheexerciseof the government's equity interest in Hyphen's project mark significant milestones in Namibia's journey towards a thriving SyntheticFuelsSector The partnerships with Dutch organisations and international investors will support Namibia's economic development, combat climate change, and drivethetransitiontoa low-carbonfuture.The collaboration between countries, industry stakeholders,andinternational players will contribute to the advancement of green hydrogen development and the establishment of a sustainable hydrogen economy The government's vision includes energy selfsufficiency, regional energysecurity,andthe supply of clean hydrogen to international ports, including the PortofRotterdam.

The partnerships with Climate Fund Managers, Invest International, and other stakeholders demonstrate the commitment to mobilising capital and building capacity intheNamibianpublic sector Withthesupport of strategic alliances, Namibia is wellpositioned to harness the transformative potential of the green hydrogen sector and achieve its sustainable developmentgoals.