BPC reaches breaking point :: Mmegi Online

Heading for its second net loss in as many years, the Botswana Power Corporation (BPC) says its continued sustainability and that of its 1,900 employees hang in the balance should Cabinet decide against a long awaited tariff increase.

The parastatal has forwarded its request for a tariff increase to the Ministry of Minerals, Energy and Water Resources which has reportedly tabled it in Cabinet. A decision on the request is expected soon.

Electricity tariffs were last reviewed in January 2008. Since then, BPC has struggled with a spike in the cost of imported power, higher materials charges, the global recession and its plethora of effects as well as lost revenues arising from its load shedding programme.Recently the ministry's Permanent Secretary, Gabaake Gabaake, characterised BPC as "broke," while its Chief Executive Officer, Jacob Raleru, painted a similarly gloomy and desperate picture of the power utility in an interview with Business Week this week.

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