BPC warns of deeper losses if tariff prices are not increased

Appearing before the Parliamentary Standing Committee on Statutory Bodies and State Enterprises, BPC CEO, David Kgoboko said the national power utility was facing mounting financial pressure as it continued to sell electricity at prices that do not fully recover the costs of generation, transmission and distribution. He told legislators that the situation was particularly challenging because Botswana increasingly relied on imported electricity purchased at commercial rates from neighbouring countries while domestic tariffs remained amongst the lowest in the region.

"The price at which BPC sells electricity to customers is heavily subsidised and does not cover the cost of generating, transmitting and distributing power," Kgoboko said. BPC currently imports electricity from South Africa, Namibia, Mozambique and Zambia to supplement domestic generation. According to the CEO, the utility purchases power at prevailing market rates but is unable to recover those costs from consumers under the existing tariff structure. "If we continue importing electricity under the current tariff structure, we face either deeper losses or more load rationing," he warned.