Africa-Press – Botswana. Corporation outline need for 5% tariff increase
In their efforts to become sustainable, Botswana Power Corporation (BPC) aims to gradually migrate to cost reflective tariffs from non-cost reflective tariffs.
This was confirmed last week by BPC Chief Executive Officer, David Kgoboko during the Botswana Energy Regulatory Authority (BERA) and BPC public hearing, in which the latter applied for a tariff adjustment.
Although most households are already complaining that their power bills are too high, BPC want a 5 percent tariff hike to cover the 2023/24 and 2024/25 financial years.
They had sought a similar increase for the current financial year but were unsuccessful.
If successful this time, it would be the fourth tariff increase since 2018, when rates have risen by 35 percent in total.
The power corporation are also seeking a government subsidy of P300 million and P200 million for the two years.
The request is motivated by the corporation’s need to raise close to P5.4 billion as operation income.
Reasons advanced by BPC for the tariff adjustment include: recurring financial losses caused by non-cost reflective tariffs, increasing costs of imported power and low availability of Morupule Power B.
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