(3 Minutes Read)
Local and regional councils in Namibia are falling deeper into debt with the national electricity provider, NamPower, as outstanding payments continue to rise. According to the Electricity Control Board (ECB), these arrears are growing at a concerning rate—by approximately N$10 million each month.
ECB Chief Executive Officer, Robert Kahimise, highlighted the Rehoboth Town Council as one of the more critical cases. Despite being on a bulk prepayment system, the council is struggling to reduce its substantial outstanding balance. Kahimise explained that the current repayment structure is not effective, with only 10% of the prepaid electricity amount allocated toward settling the existing debt. As a result, the remaining balance continues to accrue interest, increasing by roughly N$1.2 million every month.
In response to the growing debt crisis, the ECB Board has proposed a more lenient interest policy to support municipalities actively trying to settle their debts. At a board meeting held on 12 June 2025, members advised NamPower to consider suspending interest charges for local authorities that demonstrate a sincere commitment to repayment. “In cases where councils are making steady efforts to pay down their debts, the Board has encouraged NamPower to stop applying interest to overdue amounts,” said Kahimise.
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Amidst the financial strain faced by many councils, some entities like the Northern Regional Electricity Distributor (NORED) are managing their obligations more effectively. NORED reported arrears of N$38.5 million as of early May but continues to meet the terms of its repayment agreement. Kahimise added that NORED was on track to clear its debt by the end of May.
These developments come after NamPower revealed in 2024 that total customer debt had reached N$1.5 billion. At that time, the utility had warned of potential service disconnections for defaulting local authorities. However, that threat was averted following the implementation of a government-backed intervention strategy designed to stabilise the financial situation and maintain electricity supply across the country.
