HomeNewsNored tables transformer refund scheme to ensure fairness

Nored tables transformer refund scheme to ensure fairness

Individual first-time clients in areas with no readily set-up electricity transformers in order for their households to be connected were required to pay large deposits and payments for the cost of a transformer.

According to the New Era, this has resulted in the clients believing they own the assets and therefore can decide how much other clients can be charged to subsequently join into the transformer.

To set the record straight about the ownership of the power assets, Nored manager for operation and maintenance for northwest, Shinana Shinana, said the transformers remain the property of the power distributor, although the customers are required to pay for it. Read more…

“The transformer will always remain the property of Nored. People should know that paying for the transformers does not guarantee that it is yours, what is yours is actually power,” Shinana explained.

He continued: “For instance, you buy the transformer today, it gets connected and then the next day it gets damaged. Will you afford to buy another one? And will you still [say] it’s yours, or you will call Nored?

“In that regard, we will replace or fix it and you should know that transformers need to be changed from time to time. So, once anything happens we will always be there at anytime to attend to the issue. That why it always remains our responsibility to manage it,” Shinana added.

Nored pledge to refund customers

Nored’s executive manager for corporate affairs, Toivo Shovaleka, said, “Nored will proportionally refund customers who made the first capital payment on the project to ensure fairness. For instance, if the person made a capital payment of N$100,000 ($7,180), the amount the next people will pay will be determined based on the capacity of the transformer, as to how many households can be accommodated.”

“So, if it accommodates five households, it means each will pay N$20,000 ($1,435), which would then be refunded to the capital payment individual. This was created to make [electricity] affordable and accessible to everyone,” Shovaleka stressed.

However, Shinana also noted that customers should know that the value of transformers depreciates with time, hence they should not expect to be refunded with high amounts based on the price they had paid.


Featured image: Stock

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.