Low power tariffs deter investment

Minister of Minerals, Energy and Water Resources (MWER), Kitso Mokaila recently told parliament that until national electricity tariffs are cost reflective, government efforts to promote renewable energy would remain a mirage. Electricity tariffs will go up 10% next month as government battles to boost revenue for the loss making Botswana Power Corporation (BPC). Mokaila said the power utility is losing about 50 thebe of each unit of power sold. “This is due to tariffs that are not cost reflective,” he said.

On Tuesday, SAPP Chief Market Analyst, Musara Beta said at a workshop of ‘unconventional gas to power Southern African’ held in Gaborone that weak utility balance sheets are not favourable to anchor projects.