SELCo shouldn’t bank on big damage claim, town says

THE Southern Electricity Company (SELCo) should not expect a “sizeable amount” out of a damage claim it lodged against the Keetmanshoop Municipality, according to the town’s Chief Executive Officer, Jeremia Shangadi.

“SELCo should not create an impression that they will gain a major financial input to boost their JSE (Johannesburg Stock Exchange) standing and earning shares,” he said. SELCo company secretary Elsa Steyn earlier had told a Johannesburg newspaper that company earnings were expected to increase by 290 to 300 per cent as a result of the ruling.The parties are embroiled in an ongoing court battle after the Town Council unilaterally terminated the power supply deal early last year.The High Court had granted SELCo an interim interdict to resume its responsibilities for electricity provision at the town.SELCo and the Town Council entered into an exclusive 15-year power supply deal in 2001.In an interview with The Namibian, Shangadi said Council terminated the power supply agreement to challenge its legality.”It’s our democratic right to do so, and we will accept the court verdict,” he said.SELCo’s Elsa Steyn claimed the dispute was triggered by the strong performance expected from the JSE-listed Electricity Supply Company in the year to June.SELCo also claimed the dispute affected the group’s performance in the six months to December last year, when earnings dropped from the previous year’s 269 cents a share to 130 cents.Shangadi told The Namibian that SELCo was claiming around N$1 million from the municipality.He believed SELCo conned the previous Town Council into the power supply deal with a lucrative royalty offer of N$160 000.He said the town had received between N$80 000 and N$90 000 in royalties.Shangadi said SELCo had made N$2,5 million in profits from electricity sales at Keetmanshoop.SELCo company secretary Elsa Steyn earlier had told a Johannesburg newspaper that company earnings were expected to increase by 290 to 300 per cent as a result of the ruling.The parties are embroiled in an ongoing court battle after the Town Council unilaterally terminated the power supply deal early last year.The High Court had granted SELCo an interim interdict to resume its responsibilities for electricity provision at the town.SELCo and the Town Council entered into an exclusive 15-year power supply deal in 2001.In an interview with The Namibian, Shangadi said Council terminated the power supply agreement to challenge its legality.”It’s our democratic right to do so, and we will accept the court verdict,” he said.SELCo’s Elsa Steyn claimed the dispute was triggered by the strong performance expected from the JSE-listed Electricity Supply Company in the year to June.SELCo also claimed the dispute affected the group’s performance in the six months to December last year, when earnings dropped from the previous year’s 269 cents a share to 130 cents.Shangadi told The Namibian that SELCo was claiming around N$1 million from the municipality.He believed SELCo conned the previous Town Council into the power supply deal with a lucrative royalty offer of N$160 000.He said the town had received between N$80 000 and N$90 000 in royalties.Shangadi said SELCo had made N$2,5 million in profits from electricity sales at Keetmanshoop.