Botswana`s electricity cost set to rise sharply
source: The Botswana Gazette
Written by NCHIDZI SMARTS
Wednesday, 30 June 2010 00:00
Botswana Power Corporation (BCP) chief executive officer (CEO) has said that the formulation of a tariff policy is in progress.
Speaking at the inaugural Energy Pitso hosted by the Ministry of Minerals, Energy and Water Resources, CEO Jacob Raleru indicated that there is a need to have cost reflective tariffs in place. He explained that the rural electrification programme is being undertaken at a cost and that government is subsidizing rural power use.
Also, Independent Power Producers (IPP) will require guarantees for a return on investment, hence the need to have transparent and cost reflective tariffs.
The need for a tariff policy comes as a way of addressing shortcomings of the current tariff policy framework and to ensure that the Morupule B Power Station Project is sustainable. This has been highlighted in the World Bank (WB) appraisal document for [continue reading]