City of Windhoek loses court battle to cut electricity over unpaid water bills and other arrears

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Date: 24 March 2026

HIGH Court judges Thomas Masuku and Andrew Corbett dismissed an application by the City of Windhoek (CoW) Municipal Council in which it sought court approval to cut off the electricity of Namibians who are in arrears with water and other rates and taxes.

The legal battle between the two state entities began after the Electricity Control Board (ECB) of Namibia, on 27 June 2024, issued a directive to all local authorities to cease the practice of blocking prepaid electricity meters to recover arrear fees, levies, and charges in respect of rates, taxes, and other municipal services, and to explore alternative debt recovery methods that comply with the relevant legislation.

The City of Windhoek was aggrieved by this decision, stating that cutting off electricity remained one of its main effective methods of debt collection. Towards the end of last year, the Namibia Water Corporation (NamWater) warned of a deepening debt crisis which threatened the country’s bulk water supply system, with debt rising to N$2.8 billion by November 2025—a tremendous jump from the debt level of N$2 billion recorded in March 2024.

The Electricity Control Board, however, made a counter-application against CoW for an order declaring that the provisions of section 31(b) and (c) of the Electricity Act 4 of 2007 are to the effect that the applicant (CoW), as licensee in terms of the provisions of the Electricity Act, is not entitled to reduce or discontinue its supply of electricity to a customer where the customer has failed to pay any fees, charges, or other monies due in respect of any supply to the customer other than a supply of electricity.

This was, however, negated by CoW, which argued that section 31(c) of the Electricity Act clearly provides that a licensee may reduce or discontinue the supply of electricity to a customer that fails to comply with the conditions of the supply of electricity to him/her/it.

“It is the CoW’s condition for the supply of electricity to its customers that they pay the full bouquet of the municipal services offered by the CoW. This is a condition contemplated by and in terms of section 31(c) of the Electricity Act. A customer’s non-compliance with the aforesaid condition entitles the CoW to reduction and discontinuance of the supply of electricity,” the municipal council wrote in its heads of arguments.

The High Court judges, however, held that whilst regulation 20 of the Council’s Electricity Supply Regulation permits the suspension of electricity to a consumer where an electricity account remains unpaid, there is no suggestion in regulation 20(1) that this would extend to the suspension of the supply of electricity in a situation where the electricity account is fully paid.

“The reliance by the Council on its Consolidated Revenue Protection and Enhancement Plan does not elevate the principle to one of statutory authority to block customers’ prepaid meters where they fail to pay their arrear rates and taxes or other accounts due to the council,” the judges said.

They added that the ECB had made a case for the granting of the counter-application together with costs and noted that should there be any ambiguity or uncertainty about the interplay between provisions of the Local Authorities Act and those of the Electricity Act, together with any regulations, rules, or codes, the legislature has resolved this issue. “The Electricity Act and its regulations, rules, or codes would prevail,” the judges held.

Source: Informante Staff Reporter