BPC eyes 46% tariff hike from April
Mbongeni Mguni | Monday December 22, 2025 09:43
According to documents filed by the Corporation with the regulator, the BPC is seeking a 68% tariff increase for domestic consumers, 41% for government and 40% each for commercial users and mining operations. The different requests have a weighted average of 46%, according to numbers released this week by BERA.
“The reasons for the proposed 46% upward average tariff adjustment as submitted by BPC include recurring financial losses due to non-cost reflective tariffs, unreliable local generation and heavy reliance on imported power, escalating input costs, including fuel, maintenance and financing expenses as well as prolonged non adjustment of tariffs, prior to the 2025/26 financial year,” BERA notes show.
The energy regulator said BPC’s proposal is for an average 46% tariff increase starting on April 1, 2026, with no subsidy from government and no other tariff increases or similar support from public revenues for the years to 2029-30.
In March, the BPC asked BERA for an average 38% increase for the 2025-26 financial year but it was instead awarded a 30% reduction in tariffs for domestic customers consuming less than 200 kilowatt-hours (kWh) per month and an average 24% increase in tariffs for all other customer categories. The changes took effect on July 1.
In its latest request dated December 15, the BPC said it had still not reached cost reflective tariffs despite the July increase.
The Corporation said its estimates showed that it would need revenues of P9.6 billion in the 2026-27 financial year, but expected to only receive P6.1 billion, excluding a government subsidy.
“Consequently, an upward tariff adjustment and/or tariff support is required to close the gap between the revenue requirement and the expected operating income, in accordance with the BPC Act and principles of cost-reflective tariffs,” the Corporation said.
Under its Act, the Corporation is required “conduct its affairs on a sound commercial line, and to prescribe electricity charges to ensure that its revenues are sufficient to produce a reasonable return on the fair value of its assets”.
The BPC said it had attempted to make its tariff proposals as fair as possible, considering the needs of low-income, rural, and otherwise disadvantaged groups.
While all categories of consumers will be hit hard by the proposals, it is the plans for domestic users that will shock many. According to the BPC’s proposals, the increases amongst consumers will generally be on a sliding scale, with those using the most being hit hardest in terms of the proposed increase.
Consumers using under 100 kilowatts hours could see a tariff increase of 39%, while those up to 200kwh could receive a 62% increase. Those above 200kwh could be hit with an increase of 56%, while the hardest hit will those using in excess of 1,201kwh who could be charged 180% on their tariffs if the BPC has its way.
The Corporation defended its plans for domestic users.
“The tariff charged for domestic customers is based on an exponential model which will ensure a more equitable structure that protects essential consumption while promoting fairness and affordability across vulnerable households,” the Corporation said.
Under the BPC’s proposals, small-medium and micro enterprises will be charged a new rate of P1.86/kWh and P2.82/kWh for customers with a monthly consumption of less than 500kWh and monthly consumption of more than 500kWh respectively. The two tariffs represent increases of about 40% each.
The power utility’s plans come as Batswana face tightening personal finance conditions, as the economy heads for its second consecutive year of contraction. The years 2024 and 2025 will be the first time the economy has contracted in consecutive years since Independence.
BERA has invited comments on the proposed tariff hikes. Members of the public, as well as other interested parties, can submit via email to or tumelo.ledibogo@bera.co.bw and info@bera.co.bw.
The regulator will also hold public hearings on the proposed tariffs in February.