Gov’t weighs options as tariffs become ‘unsustainable’

Friday, March 28, 2025 | 380 Views |

Under pressure: Local generation accounts for just under two-thirds of demand PIC: MBONGENI MGUNI

The Minerals and Energy ministry is reviewing a Botswana Energy Regulatory Authority (BERA) tariff study which will chart the path to cost-reflective tariffs, as government says continuing to subsidise electricity is “increasingly unsustainable”.

Whilst consumers, particularly households, believe the cost of electricity is high, high local generation costs and escalating imports, mean the current tariffs are a fraction of the true cost paid by the Botswana Power Corporation (BPC).

Government has thus been pouring in billions of pula over the years to plug the gap and restrain tariff adjustments from what they need to be to reach cost-reflective level.

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