BERA proposes new energy licence fees
Pauline Dikuelo | Friday November 24, 2017 17:06
According to the Authority’s proposed electricity fee structure, application for up to 100KW of electricity will be free, from 100 to 500KW is P5,000, and from 500KW to 1MW is P15,000.
The regulator is also proposing a fee of P17,000 for an application of 1MW to 5MW, 5MW to 10MW is P18,000 while 10MW is P75,000. Only companies that will be applying for 10MW licence will require an annual fee of 0.89% of turnover.
Under the proposed petroleum structure, the application fee for retailers is P5,000, bulk and mini storage, wholesale and distribution is P15,000, export is P21,000, import is P21,000 and gas is P22,000. An annual fee of O.58% will be charged on the imports and exports licences. Speaking during a consultative meeting with stakeholders this week, BERA chief executive officer, Rose Seretse said they have come up with some proposed fees for the application of licences, which is expected to be valid for two years.
“We have come up with some proposed fees that we have put to the stakeholders as we want their input because they are the ones who will be paying those fees hence the reason for this consultative meeting,” she said.
According to Seretse, following this, they will give their stakeholders a week to submit their written suggestions. The Authority would then take them to the Ministry of Minerals, Green Technology and Energy Security for gazetting as they intend to implement new fees by January next year.
“We have gathered that our stakeholders are not against the proposed fees as they believe it’s necessary for BERA to have them. However, they had some comments on how we can improve on the fees structure that we have proposed.
“We have given them one week to make a written submission on all the suggestions that they have put across,” she said.
She said Section 51 of the BERA Act provides that they should have some fees that are charged which include application fees and annual licence fees, decommissioning fees and any other fees that may be determined by the Authority. The Act also provides that no person shall provide a service under a regulated sector unless he is issued with a licence in the manner prescribed by the Act. It further states that a person shall not erect a significant infrastructure unless he or she is authorised to do so by the Authority.
She said an application for a licence may, if the Authority considers necessary, be done through a tendering method determined by the Authority and that it will be issued at a fee which includes application fees and annual licence fees amongst others. The annual licence fees in aggregate should not exceed one and half percent of the combined gross turnover of the licensed or regulated entity.
BERA’s primary mandate involves the economic regulation of the energy sector and to also ensure that there is competition in the energy sector in the country.