Windhoek residents who barely recovered from shock due increased water and electricity tariffs from 1 July, might face another problem soon, when the Windhoek municipality will outsource its electricity distribution department to a private company. According to the White Paper on Energy, regional electricity distri-butors or RED’s must handle electricity distribution. The example of SELCO in Keetmanshoop has shown what mess was created with ratepayers and electricity consumers involved in bitter fights over tariffs.

A central RED is underway and municipalities in the Khomas Region will have to sign contracts with such a company.

The entire billing system and fixing of tariffs will then be removed from the Windhoek municipality. It is a well-known fact that the City makes a comfortable profit on electricity with the basic tariff and on electricity consumption. If this falls away, Windhoek will have around N$ 45 million less per year in its kitty, to the detriment of maintenance of its infrastructure and municipal services.

This realisation appears to have dawned on the City’s management levels and difficult negotiations are underway with the central RED and the Electricity Control Board, PLUS has learnt from a reliable source.

"I can tell you that talks are ongoing," was all the City’s spokesperson Ndangi Katoma was willing to tell PLUS on Wednesday. He would neither confirm nor deny if Windhoek had already signed an agreement with the central RED. The other existing RED’s like Nored and the northwestern RED are usually black owned companies.

PLUS further learnt that fewer Wind-hoek consumers pay their electricity and water bills, including government ministries.

A person close to the City’s administrative offices told PLUS that allegedly employees of the Windhoek municipality are in arrears with their bills to the tune of N$ 1 million. They don’t’ get their water or electricity cut off. "Why is the City so lenient with them, but quickly cut off electricity or water if a normal citizen does not pay?" the source said.