Debswana power bill swells by P83 million

MBONGENI MGUNI
Staff Writer | Thursday July 22, 2010 00:00

 

In a brief to employees last week, managing director of the diamond giant, Blackie Marole said the across the board and conditional increments would result in a total aggregated increase of 55.5 percent on the company's electricity bill. 'Using 2008 figures as a baseline, this represents over P83 million per year increase in 2010,' Marole noted.

As a result of the cost analysis, Debswana has embarked on a P4.6 million energy conservation baseline studies to 'determine and quantify opportunities as well as plan implementation of energy conservation in operations'.

'The only way to mitigate this increase is to reduce our energy consumption. I count on your support for the effective implementation of these initiatives,' Marole told workers. Electricity tariffs were reviewed by 30 percent across the board with effect from May 1, 2010, with other conditional increments for certain household and industrial consumers. The tariffs were last reviewed in January 2008. In the interim, the higher costs of imported power, rising material charges, the global recession and its plethora of effects as well as revenue losses from the load shedding have played havoc with the books of the Botswana Power Corporation (BPC).

The parastatal was hoping for a 55 percent across the board tariff increase and further capital funding in the May announcements. Debswana is one of the biggest customers of BPC, paying an average of P150 million annually for power usage at its mines in Jwaneng, Orapa, Letlhakane and head office in Gaborone. The diamond giant bears the cost of electricity in its health, education, sporting and recreation facilities, which are used by employees and members of the public.

From October this year, it is expected that the Jwaneng and Orapa mines will be taken off the national grid, when the 90 megawatt (mw) power plant at Orapa is commissioned. As Jwaneng, Orapa and Letlhakane collectively require 85 megawatts, the excess will be available for other consumers.

The power station will initially be a diesel-fired operation, using 292, 000 litres of fuel for the eight hours a day that it will run. It is anticipated that the monthly bill of operating the power plant will be approximately P12 million per month or P144 million per year.