BW Kudu line exposes govt-ECB power rift

A dispute over BW Kudu’s application to construct a private electricity transmission line has exposed a split between the mines and energy ministry and the Electricity Control Board (ECB) over who should own and control Namibia’s national power grid.The ECB regulates electricity generation, transmission, distribution, supply and tariffs under the Electricity Act, while the ministry determines national energy policy.Mines and energy minister Modestus Amutse opposes independent transmission companies. The ECB, meanwhile, has started developing a regulatory framework for their operation.Correspondence seen by Namibian Sun shows that government supported NamPower’s objections to BW Kudu’s transmission licence application before the regulator invited consultants to develop an independent transmission company (ITC) framework.Amutse told Namibian Sun on Monday that government’s position against privatising electricity would not change.“We are not privatising electricity in this country,” Amutse said, warning that private ownership or control of transmission infrastructure could affect consumers.“It will affect a lot of things, including tariffs,” he warned.Amutse disclosed that the ECB had contacted him to arrange discussions, although a meeting date had not been agreed upon.He insisted that any changes to transmission arrangements would require government involvement.“If ever we do, it should start with the government’s involvement, and if it has to be done, then it will be done by us,” he said.BW Kudu applied to the ECB for a licence to construct a 400-kilovolt transmission line connecting its proposed gas-fired power station to NamPower’s Obib substation.NamPower opposed the application, raising concerns about private ownership of infrastructure connected to the national electricity network and the implications for its responsibilities.On 22 June, Amutse wrote to NamPower supporting its concerns, describing strategic transmission infrastructure as critical national infrastructure and part of Namibia’s sovereign energy assets.The minister said privately owned transmission entities operating outside the existing framework would conflict with NamPower’s mandate and government’s objective of maintaining an integrated, coordinated and secure electricity transmission system.Amutse said the ministry would engage relevant institutions to ensure decisions affecting the network remained aligned with government policy, energy security objectives and the long-term interests of the electricity industry.Transmission licencesOn 31 July, the ECB issued a request for proposals inviting consultants to develop an ITC regulatory framework.The assignment, a lump-sum consultancy contract with a maximum duration of eight months, covers licensing, ownership, operation, grid access, revenue arrangements and tariffs.Proposals closed on 31 August.The ECB’s tender stated that NamPower was Namibia’s only transmission licensee but that the Electricity Act did not prevent other participants from obtaining transmission licences.The proposed framework would establish rules governing how independent transmission companies operate alongside NamPower.On 17 August, Amutse wrote to ECB, calling for the procurement process to be halted until government had pronounced itself on the matter.“The government does not support the creation of independent transmission companies in Namibia.“We cannot support the fragmentation, privatisation or transfer of ownership or control of strategic national transmission infrastructure outside the national transmission framework established under existing legislation, policy and regulatory instruments,” he wrote.Amutse also warned that “such a fundamental policy matter” cannot be decided through a licensing or regulatory process and requires “deliberate government consideration and an explicit policy decision”.FrameworkNamibia’s modified single buyer (MSB) electricity market framework allows certain independent power producers to sell electricity directly to eligible customers under specified arrangements.Amutse said government continued to support private participation in electricity generation and trading.“The ministry remains supportive of the implementation of the MSB framework within its intended scope, as well as private-sector participation in electricity generation and trading,” he wrote.Decisions that contradict government’s position on independent transmission companies would not be tolerated, the minister warned.“So if we ever find out that what we don’t want done, and what we are opposing, there is a contradiction, then we have a problem. We are not going to allow that,” Amutse said.The status of BW Kudu’s transmission licence application and the ECB’s procurement process has not been established.Questions sent to ECB chief executive officer Robert Kahimise were not answered by the time of going to print yesterday afternoon.

BW Kudu line exposes govt-ECB power rift

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Namibian Sun 2026-10-13

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BW Kudu line exposes govt-ECB power rift

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Namibian Sun 2026-10-13

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