BPC warns of deeper losses if tariffs are not increased26 May 2026 09:54
The Botswana Power Corporation (BPC) has warned Parliament that it cannot remain financially sustainable under the current electricity pricing regime, arguing that tariffs approved by regulators continue to fall far below the actual cost of supplying power. Appearing before the Parliamentary Standing Committee on Statutory Bodies and State Enterprises, BPC CEO, David Kgoboko said the national power utility was facing mounting financial pressure as it continued to sell electricity at prices that do not fully recover the costs of generation, transmission and distribution.
He told legislators that the situation was particularly challenging because Botswana increasingly relied on imported electricity purchased at commercial rates from neighbouring countries while domestic tariffs remained amongst the lowest in the region. “The price at which BPC sells electricity to customers is heavily subsidised and does not cover the cost of generating, transmitting and distributing power,” Kgoboko said.
BPC currently imports electricity from South Africa, Namibia, Mozambique and Zambia to supplement domestic generation. According to the CEO, the utility purchases power at prevailing market rates but is unable to recover those costs from consumers under the existing tariff structure. “If we continue importing electricity under the current tariff structure, we face either deeper losses or more load rationing,” he warned. The remarks come months after BPC applied to the Botswana Energy Regulatory Authority (BERA) for an average tariff increase of 46%, one of the most significant adjustments sought by the Corporation in recent years.
The increase in import costs has emerged as one of the biggest pressures on the utility’s finances. For years, Botswana has sought to reduce dependence on imported electricity through investments in domestic generation capacity, particularly at Morupule B. While plant performance has improved considerably compared to earlier years when technical failures led to widespread power shortages, the country still relies on imported electricity to meet demand. Those imports have become increasingly expensive as electricity prices across the region have risen.
Kgoboko revealed that BPC secured P1.7 billion in external funding during 2024 to settle a backlog of obligations owed to creditors. While the financing provided temporary relief, he said structural challenges had resulted in liabilities building up once again. Creditor balances currently stand at approximately P3.5 billion.
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