NamPower has issued a statement clarifying why it defied a Cabinet directive instructing the power utility not to forge ahead with the power cuts it executed on Monday.

NamPower Managing Director Simson Haulofu confirmed that the company received the communication on the Cabinet Directive from the Minister of Finance and Public Enterprises, which directed it not to forge ahead with the planned power cuts, on Monday.

NamPower switched off electricity to several defaulting local authorities and NORED on Monday.

However, the power utility says that after due consideration, the Board of Directors unanimously decided to exercise its fiduciary responsibilities towards the company and to protect the interests of the company and its stakeholders.

The Board of Directors and Management resolved to proceed with the disconnection plan because it is in the best interest of the financial sustainability of the company and the sustainability of electricity supply in the country, according to the media statement released by NamPower.

Haulofu maintains that disconnecting the power was the last resort after exhausting all possible interventions to collect long-standing debts, as non-payment of debts detrimentally affects the company’s duty to supply electricity to the entire country.

According to the company's debt collection plan, local authorities who fail to pay or make arrangements will feel the wrath of another power cut on Monday and Tuesday next week. The company has, however, not expressed whether it plans to go ahead with Stage 2.