MINING & ENERGY OSHAKATI PREMIER ELECTRIC BACKGROUND OF OPE The Oshakati Town Council took a ground-breaking step in the history of local government in Namibia when it joined forces with Premier Electric (a subsidiary of NamPower) to establish a joint-venture company, Oshakati Premier Electric (OPE), in the year 2000. The company became operational in the same year. OPE’s main objectives are to distribute and supply electricity and to maintain and operate the electrical infrastructure in Oshakati. The Electricity Act of 2000 allowed Local Authorities to commercialise the electricity services through agreements such as joint ventures and private public partnerships. OPE became the first private company to distribute electricity in Namibia. Initially, NamPower and the Oshakati Town Council had equal shareholdings in OPE (50/50). The Oshakati Town Council contributed electrical infrastructure in Oshakati to OPE and NamPower injected capital, equivalent to the value of the assets contributed by the council. In June 2007 NamPower’s investment in OPE was settled and the Oshakati Town Council became the sole owner of OPE. OPE is governed by a board of directors and run by a management team appointed by the board. It operates within the municipal boundaries of Oshakati and is responsible for supplying power to the town of Oshakati, maintaining and upgrading the street and traffic lights as well as existing and future networks, and for other related services such as account payments, power applications and fault reporting. WHO WE ARE AND WHAT WE DO We deliver effective and efficient electricity supply services to all customers in Oshakati, and we plan and expand our electrical network to cope with the growing demand. We maintain good relations with our customers and render the following services: • Supply power to the town of Oshakati • Maintain existing infrastructure • New connections
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Electrification Reconnections and disconnections of power on request Attend to all power failures Sell prepaid electricity tokens (24hrs) Account payments and enquiries
MILESTONES Oshakati Premier Electric operates in accordance with a master plan that was formulated in 2001 for electrical services in Oshakati and the surrounding areas. This master plan governs the orderly implementation of new electrical services and the maintenance of the existing electricity infrastructure of the town. Here are some of OPE’s milestones: • Upgrading the main NamPower supply from a 10MVA (Mega Volt Amp) transformer to 20MVA to cater for load growth. • Growth in return on investments paid to the shareholder; OPE currently pays N$ 8 million as return on investment to the Oshakati Town Council. • Reduction of power failures. • Reduction of debt collection days to 32 days. • Completion of the 2001 electricity master plan which ensures growth in the customer base. • Commissioning of the OPE electricity master plan as well as the maintenance master plan in 2013. • Investment in infrastructure as per OPE master plan from profits and yet remaining sustainable. • Providing 24 hour prepaid vending stations since 2003. • Two of the bursary recipients graduated in 2015. • Training of our core business employees to obtain wiremen licensing, switch authorisation and various other fields of expertise. • Investing in a power factor correction plant to ensure efficiency and reducing the costs of purchasing power. • Connecting new customers in previously nonreticulated areas; OPE has distributed power to about
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2,600 erven over the past 15 years in areas such as Evululuko, Okandjengedi (south, north and east), Oneshila, Uupindi north and south, part of Oshoopala and all authorised and enabled local areas. OPE installed and maintains street lights in Oshakati at no cost to the Oshakati Town Council; this translates into some N$2 million a year; Oshakati’s main road is now adequately lit up to improve safety. OPE erected 44 high mast lights (about 25 metres high) on several roads: Uupindi, Evululuko, Okandjengedi, Oneshila, Oshoopala and Mandume Ndemufayo/Okahao. OPE installed seven traffic lights, which not only ease traffic flow but also give a modern look to Oshakati. Traffic lights were unheard of in the northern parts of the country prior to independence.
OPE’s mission is to provide electricity to all residents of Oshakati and by doing so support Government in achieving Vision 2030. Interim Business Continuity and Sustainability. In order to ensure sustainability, OPE is currently at an advanced stage of constructing a 10 Megawatt Solar Park near Oshakati at an estimated cost of N$240 million. This facility is expected to be completed by the end of 2016. The solar park will complement supply from NamPower, act as a backup, improve the quality of electricity supply and ultimately provide a cost benefit to customers. Solar Energy is renewable and thus helps to reduce the carbon footprint, while at the same time improving OPE’s sustainability. An environmental impact assessment has already been completed and the site has been approved and made available by the Oshakati Town Council. Once this project is completed, it will increase the asset base of the company tremendously. The solar plant, which will not
be grid-connected, is expected to produce power for about 25 years, a life span that will also allow OPE sufficient time to manage its electricity tariffs. OPE is applying for a licence from the Electricity Control Board. With the escalation of electricity tariffs the solar plant is expected to help alleviate the high cost of electricity while OPE works towards setting up other generation projects. OPE wants to supply electricity to as many people as possible as part of its contribution to Vision 2030. This will require that the company increases its own electricity generation capacity. Opportunities also exist to supply “smart” electric meters to customers. These meters allow customers to have Wi-Fi internet access via the smart meters. As employees are the most important asset of any company, OPE plans to increase its workforce and extend the company’s office space to accommodate the entire corporate and technical staff under one roof. OPE created, and continues to create, an environment conducive to investors in Oshakati, such as the envisaged Coca Cola bottling plant scheduled for operation in mid2017 and the Afrideca plans to enlarge the so-called Game Complex by 50%. AWARDS AND RECOGNITION 2012 - Electricity Control Board Awards: OPE was recognised for the lowest collection cycle and the lowest bad debt percentage. 2014 - Electricity Control Board Awards: OPE was awarded the prize for being the Most Consistent in deriving value from power quality investments.
OPE RAUTIA MWAALA ADMINISTRATIONS AND COMMUNICATION OFFICER Tel +264 65 22 0229 Fax +264 65 22 2688 Toll free 080 088 8888 RMwaala@ope.com.na www.ope.com.na WWW.NAMIBIATRADEDIRECTORY.COM
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