Govt pumps P454 million into BPC

The bailout is part of a rescue package for BPC which also includes the recently announced 30 percent electricity tariff hike. The cash-strapped utility reportedly required a 55-percent hike, but with consumers in mind, Government opted to minimise the hike and complement it with the P454 million cash injection.

The bailout is timely as the BPC, weighed down by ballooning costs of imported power, maintenance and generation, has recorded its second net loss in as many years. In addition, the BPC annually incurs the costs of subsidised rural electricity connections which often run into hundreds of millions. Government later pays for these subsidies but has now introduced a levy on all electricity charges that will act as a fund for rural connections.