… As they are urged to offer extra services
By Hilary Mare
NORTHERN Electricity Distribution Company (Nored) Chief Executive Officer, Fillemon Nakashole has dismissed any talk of an increase for vendors selling power on its behalf.
Nored vendors have received 4 percent commission since 2012.
One of the vendors, who spoke to Confidente last week, highlighted that the economy had changed and it was imperative that the responsible authorities look into this issue, and up the incentives provided them.
“Vendor commission is just 4 percent over the last many years and this must to be addressed, as it is not meeting our economic situation. We are key stakeholders, and I believe that we are not being valued enough,” said the vendor, who spoke on condition of anonymity.
Speaking at an information session organised by Nored at the annual Ongwediva Trade Fair last week, Nakashole highlighted that vendors needed to offer extra services, which will drive consumers to them, and make them more income.
“Vendors are doing a great job to ensure that our people do not really have to queue up at our offices, but if we have to increase the commission, it means that we have to increase tariffs, and that will not be permitted by the Electricity Control Board. Vendors can give extra services that may attract customers to their vending, but the commission will remain the same,” he stressed.
As part of its five-year strategic plan, Nored has approved N$108.5 million for the implementation of capital projects for 2017/18 financial year.
Nored now boasts of a customer base of 79 781 clients, of which 76 705 are prepaid customers that attract the services of vendors.
Annual turnover for 2017 was recorded at N$846.4 million, an 8 percent increase from 2016. However, the distributor had to pay N$617.2million to Nampower, as cost of sales.
Confidente understands that the distributor paid Nampower an amount of N$76 million last month.
Earlier this year, Nored declared dividends of N$7 million to its shareholders for the year ended 30 June 2016.
The announcement was made by Nored board chairperson Sacky Kayone at the company’s 14th annual general meeting.
Kayone said that the year under review had not been an easy one, due to various challenges in the electricity supply sector in the SADC region. But Nored’s hard work had begun to pay off, as it built an even stronger company, he added.
Nored is also working around the clock to decentralise its functions to all parts of its area of operation.
As part of this process, the company recently held a groundbreaking ceremony of its multi-million office building at Rundu.
Speaking about the core challenges affecting the distributor, Nakashole highlighted that illegal activities were their dominant challenge.
“We have faced serious vandalism and theft of both the electricity and copper cables. We also have people that bypass the meter and induce illegal connections,” he said.
It has also been reported that the newly serviced Extension 5 in Omuthiya has fallen prey to the theft of copper cables from the power substation, with thieves ransacking the power installation.
It is suspected that the copper cables where stolen and sold at a scrapyard, where the demand for these cables are high, and where scrap metal dealers buy cables, with no questions asked.
About 23 kiosks out of 26 were damaged, when the cables were cut off, including a mini-substation, where an earth cable and three steel bars were stolen. The damage will cost over N$300 000 to repair.
Confidente. Lifting the Lid. Copyright © 2015