The Energy White Paper of 1998 identified the need to restructure Electricity Supply Industry (ESI), subsequent the Electricity Act of 2000 was promulgated. Some of aims for restructuring of the ESI were:

• To improve efficiency
• To upgrade aging infrastructure
• To lower tariffs and
• To accelerate electrification projects and therefore stimulate economy, etc

The Electricity Act of 2000 allowed Local Authorities to commercialize the electricity services through agreements like, JVC’s, PPP, etc. The Oshakati Town Council (OTC) immediately made use of the opportunity and approached NamPower for a possible smart partnership. NamPower welcomed the OTC initiative and the JVC concept was supported by both line ministries namely; Ministry of Mines and Energy as well as Ministry of Local, Regional Government and Housing.

Some of the objectives for the JVC were:

• Reduction of illegal connections and technical losses
• Electrification of urban poor localities of Oshakati
• Improved administration of Electricity Services
• To keep tariffs as affordable as possible, yet sustainable
• Reduction of power failures
• To grow the demand for electricity
• Rehabilitation of the aging electricity network
• Job creation
• Make electricity profitable etc,

Oshakati Premier Electric (Pty) Ltd (OPE) then was established and became operational in year 2000. Both NamPower and Oshakati Town Council had equal shareholding in OPE whereby the Oshakati Town Council contributed electricity distribution assets in Oshakati to OPE and NamPower injected capital equivalent to the value of asset contributed by the Oshakati Town Council. During June 2007, NamPower was bought out from the shareholding of Oshakati Premier Electric, which immediately made Oshakati Town Council the sole 100% share owner of OPE.