Govt considers BPC tariff hike

Recently, impeccable sources at the BPC told BusinessWeek that the utility was pushing for a 30 percent adjustment, being the last instalment of a three-year plan under which increases ranging between 15 and 30 percent were made in 2010 and 2011.

However, Cabinet, with recommendations from the Ministry of Minerals, Energy and Water Resources will approve the final structure of any adjustment, whether the tariffs are simply reviewed or the BPC is also given tariff support in the form of a cash bailout. Last week, the ministry's permanent secretary, Boikobo Paya told the parliamentary Public Accounts Committee (PAC) that an electricity tariff increase was not only in the pipeline but was also inevitable.