SOUTHERN Regional Electricity Distributor (Sored) has shot down Southern Electricity Company (SELCo)’s hopes of becoming an operator within Sored.
The newly organised distributor of electricity distribution in the south expects to be operational by the end of this year. A source within the Shareholders Committee of Sored told The Namibian that shareholders have responded negatively to a proposal by SELCo to become an operator within Sored.”The shareholders have clearly indicated that SELCo is not welcome within Sored,” the source said.Sored, according to the source, has expressed interest in buying out the contracts that Selco entered into with local authorities.Apart from the contracts SELCo entered into with the Karasburg, Keetmanshoop and Aranos Town Councils and the Karas Regional Council, it also signed memorandums of understanding with Berseba, Bethanie, Stampriet, Aroab and Tses.Consumers of electricity in the south have expressed dissatisfaction in the past, including public demonstrations, about the sky-rocketing price of electricity provided by SELCo.The power supply deal between the local authorities and SELCo stipulates that infrastructure set up by SELCo will only become the property of the local authorities at the end of the 15-year contracts.At a meeting held last month between SELCo and a delegation of the shareholders’ committee of Sored, SELCo indicated its willingness to become an operator within Sored.The meeting was aimed at gathering information on the arrangements SELCo had with local authorities.”If shareholders do not want us, SELCo will step out of the area,” SELCo Group CEO Chris Bosch said.He claimed SELCo has created a culture of payment among residents where it operates.”However, we don’t want to force ourselves on Sored,” he said.Bosch said his company is keen to negotiate around the termination of agreements and payment claims.”But legal costs …and loss of income are to be considered should the parties wish to resolve the manner out of court”, Bosch said.A legal battle between Keetmanshoop Municipality and SELCo over the termination of an exclusive 15-year contract is pending.Bosch said SELCo had invested in the power infrastructure, and thus regarded it as a company asset.According to Bosch, N$9,3 million has been invested to upgrade the Keetmanshoop power grid alone.Significant investments were also made in Aranos, he said.The shareholders of Sored consist of members nominated by the Karas, Hardap and Omaheke Regional Councils, Village and Town Councils and NamPower.A source within the Shareholders Committee of Sored told The Namibian that shareholders have responded negatively to a proposal by SELCo to become an operator within Sored.”The shareholders have clearly indicated that SELCo is not welcome within Sored,” the source said.Sored, according to the source, has expressed interest in buying out the contracts that Selco entered into with local authorities.Apart from the contracts SELCo entered into with the Karasburg, Keetmanshoop and Aranos Town Councils and the Karas Regional Council, it also signed memorandums of understanding with Berseba, Bethanie, Stampriet, Aroab and Tses.Consumers of electricity in the south have expressed dissatisfaction in the past, including public demonstrations, about the sky-rocketing price of electricity provided by SELCo.The power supply deal between the local authorities and SELCo stipulates that infrastructure set up by SELCo will only become the property of the local authorities at the end of the 15-year contracts.At a meeting held last month between SELCo and a delegation of the shareholders’ committee of Sored, SELCo indicated its willingness to become an operator within Sored.The meeting was aimed at gathering information on the arrangements SELCo had with local authorities.”If shareholders do not want us, SELCo will step out of the area,” SELCo Group CEO Chris Bosch said.He claimed SELCo has created a culture of payment among residents where it operates.”However, we don’t want to force ourselves on Sored,” he said.Bosch said his company is keen to negotiate around the termination of agreements and payment claims.”But legal costs …and loss of income are to be considered should the parties wish to resolve the manner out of court”, Bosch said.A legal battle between Keetmanshoop Municipality and SELCo over the termination of an exclusive 15-year contract is pending.Bosch said SELCo had invested in the power infrastructure, and thus regarded it as a company asset.According to Bosch, N$9,3 million has been invested to upgrade the Keetmanshoop power grid alone.Significant investments were also made in Aranos, he said.The shareholders of Sored consist of members nominated by the Karas, Hardap and Omaheke Regional Councils, Village and Town Councils and NamPower.
