Energy minister says she expects no smooth-sailing because in addition to its huge debt to neighbouring power utilities, BPC has accumulated a bad payment history
BONGANI MALUNGA
The government has initiated talks with South Africa’s Minister of Electricity, Kgosientsho Ramokgopa, to explore a deal in which the country could continue accessing electricity from the South African utility, Eskom, at reduced rates.
This was announced by the Minister of Minerals and Energy, Bogolo Kenewendo, in Parliament on Monday this week, adding that the talks are scheduled to begin tomorrow (Thursday).
“We hope that with our deliberations with the Minister of Electricity on Thursday to renegotiate a new power purchasing agreement between Botswana and South Africa, we will achieve reduced rates that will assist us in managing costs,” she said.
Billions in debt
According to the minister, as at 31 January 2025, Botswana Power Corporation (BPC) owes Eskom more than P2.6 billion and that the debt has increased significantly over the last two months.
Prior to Kenewendo’s revelation, President Duma Boko had told a kgotla meeting in Letlhakeng that Botswana’s power crisis has reached a near-panic level because Eskom had threatened to cut supply due to the increasing debt.
Kenewendo buttressed this when she told Parliament that she expected no smooth-sailing in negotiating new bilateral agreements with regional power utilities because of BPC’s recent history of late payments.
To seek favourable terms
The minister emphasised that the process has been difficult “as the regional electricity suppliers complain of BPC’s history of delayed payments to them, leading some of them to ask for advance payment as part of conditions for the bilateral agreements”.
Nevertheless, Kenewendo said the government is seeking favourable terms that include the possibility of a prolonged payment plan to ease the current situation.
The debt restructuring proposal is part of a rescue plan that includes adjustment of tariffs in the next few months.