The Botswana Power Corporation (BPC) has posted a P311.4 million operating loss in the 2011-2012 financial year. The loss is partly caused by the near stagnant local tariffs and the burgeoning costs of imports and other expenses. The corporation's latest financials, due to be published soon, indicate that on average, the utility was incurring a cost of 85 thebe per unit of power it supplied, while receiving 57 thebe from its customers.
During the financial year, a 15 percent jump in customers to 291,338 coupled with increases in the costs of import power heavily offset government's subsidy and a 30 percent tariff increase awarded.According to the financials, the BPC's operating income amounted to P1.85 billion, while government's subsidy was P508 million.By comparison, generation, transmission and distribution expenses - which include import costs - amounted to P2.45 billion, of which P1.74 billion was attributable to power imports and purchases.Administration expenses were pegged at P440 million, inflated in part by the payout of early exit packages amounting to P62 million. The BPC's wage bill actually declined by 2.4 percent year-on-year to P301.4 million.
