Keetmans explains Erongo RED deal

Keetmanshoop municipality CEO Desmond Basson says its deal with Erongo RED will not affect power supply to the town, despite the threat of a pending lawsuit from NamPower.The municipality currently owes NamPower N$16 million and used money collected from residents to establish the Keetmanshoop Electricity Business Unit in close corporation with Erongo RED, instead of honouring its obligation.Giving his take, Basson dismissed an allegation that it was a joint venture (JV) company and said an interim arrangement with Erongo RED had been entered into rather to take over the function of electricity distribution at the southern town.“The Keetmanshoop municipality has not formed a JV with Erongo RED. We entered into an interim electricity management contract (EMC) with Erongo RED as one of the forerunners in the electricity supply industry,” said Basson.According to him, the EMC states that the contract is entered into for a period of two years or until such a time that the Southern Regional Electricity Distributor (SORED) is established.“We are firmly informed that SORED will be established by end of June 2018. If that is indeed the case than the EMC will cease to exist and SORED will take over the function of electricity distribution from the municipality, which is the licence holder,” said Basson.Commenting on the monies owed to NamPower, Basson said the council's obligation would be settled when SORED becomes operational. He added there was no risk of the electricity supply to the town being cut off.“Any electricity-related loans will be taken over by the new regional electricity distributor, therefore no risks exist that electricity-related loans would cause the municipality to be without electricity,” said Basson.He further quelled fears that it does not have the ability to settle its obligations to NamPower.“We have funds at our disposal to make payments towards the outstanding NamPower account, but this can only happen when the ministry approves the agreement between us and Erongo RED,” Basson was quoted as saying by The Namibian. The council accumulated the N$16 million debt after the Southern Electricity Company (SELCo), which had been managing electricity supply at the town for 16 years, failed to honour the NamPower invoices for March and April 2017, amounting to N$11 million.SELCo, said Basson, left the council with the huge NamPower bill in a bid to recover an outstanding N$10.3 million it was owed, according to the daily.The power distribution agreement between SELCo and council expired in November 2016.OGONE TLHAGE

Keetmans explains Erongo RED deal

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Namibian Sun 2025-06-19

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Keetmans explains Erongo RED deal

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Namibian Sun 2025-06-19

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