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Cenored commits to clear debt inherited from joint venture

The Central North Regional Electricity Distributor (Cenored) on Thursday promised to clear its debt of N.dollars 2 million owed to NamPower, saying the debt was inherited during the Cenored-Okahandja Municipality joint venture five years ago.

NamPower this week listed Cenored as one of its clients that have defaulted on their monthly agreed payments. The power utility stated that the defaulters, including several regional and local authority councils, now collectively owe it over N.dollars 1 billion. Cenored issued a media statement on Thursday explaining that its debt emanates from the Cenored-Okahandja Municipality joint venture, as the municipality owed NamPower over N.dollars 60 million before the creation of the joint venture.

Cenored further added that a monthly payment agreement between NamPower and the joint venture of N.dollars 300 000 is active and ongoing. It stated that the outstanding N.dollars 2 million will be cleared through this monthly instalment.

“A meeting held Thursday afternoon between Cenored and NamPower in Windhoek established that Cenored was put on the list of defaulters by mistake,” said the statement.

Cenored assured its direct customers that they will not be affected by the planned NamPower electricity cuts to defaulters on 05 June this year. Cenored was established in 2005 to distribute electricity to the residents of Otjozondjupa, Kunene and Omaheke regions, as well as parts of Oshikoto.

Source: The Namibian Press Agency