BPC subsidising mining companies � CEO :: Mmegi Online

The Botswana Power Corporation (BPC) says it is losing money by selling power to mining companies, some of which are profitable, at the prevailing low tariffs. New chief executive officer, Stefan Schwarzfischer told BusinessWeek the Corporation is losing 25 thebe for every KiloWatt hour (KWh) it sells to mining companies, a situation that has exacerbated the power utility’s financial performance.

Latest BPC financial results for the year up to march 2015, show that the Corporation recorded an operating loss before tariff subsidy of P1.996 billion compared to P1.398 billion in the previous year. The mining sector consumes about 35% of the BPC total supply.

From the 3.9 GigaWatthour (GWh) the Corporation supplied in 2015, the mining sector consumed 1,194 GigaWattHour (GWh) or 1.194 billion KWh of power from BPC contributing P760 million in revenue to the power utility. “The tariff for mining is about 25 thebe below the production costs. “Because of the mismatch between the production costs and tariffs, government has been subsidising us. At BPC we can only work on being efficient.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

BPC subsidising mining companies � CEO

Explore

More

Selefu

World Athletics Championships coming to Africa

Man fatally burns in Selebi-Phikwe house fire

Man carrying baby dies whilst crossing Taung road

Young girl perishes in Ledumadumane collision

Driver dies in Gabane head-on collision

Young woman dies in Metsimotlhabe crash

Castle Lite, Let's Pacers team up to unlock Botswana

The Boko-led administration has to tread carefully