Electricity connection fee cut
To cater for low- income families
Government has reduced the National Electricity Standard Connection ( NESC) fee for lowincome households with a monthly income of less than P2 400.
It will also provide ready boxes to households that are unable to wire their houses. However, the National Electricity Fund ( NEF) levy has been increased to ensure the sustainability of the fund.
The decision to reduce the connection fee follows the results of an assessment conducted by the Ministry of Minerals Resources, Green Technology, and Energy Security to establish the root cause of the low uptake by households.
The results indicated that major impediments are the high expenses of wiring houses and the inability of low- income households to afford the subsidised connection fee.
When it was introduced, the NESC fee of P5 000 and NEF levy of 5thebe, were aimed at reducing the cost of households connection which can range from P11 000 to P110 000 depending on various factors such as proximity to grid infrastructure. Despite these efforts, uptake was low.
The Minister of Mineral Resources, Green Technology and Energy Security, Lefoko Moagi, said on Tuesday that the household connection fee for low- income households will now be P2 500, reduced from P5 000.
And households, where premises have not been wired will be supplied with a ready box. “The P5 000 connection fee for middle and high- income households is maintained,” he said.
Moagi who is also a Member of Parliament for Ramotswa also announced that the NEF levy rate is increased from P0.05 to P0.10 per kWh.
The fund currently has about P100 million. Moagi added that all adjustments would be implemented through Botswana Power Corporation ( BPC) from Tuesday, February 1, 2022.
Applicants without monthly income will be required to submit an affidavit from a Commissioner of Oaths, while applicants with a monthly income of up to P2 400 are required to submit their payslip and confirmation of employment.
According to Moagi, BPC will inspect the house installation and connect the house to electricity after successful inspection. The current payment terms will still apply.
“Only applications that were not paid for prior to February 1, will be covered by the new arrangement,” the Minister explained.
So far, 450 villages out of a total of 565 gazetted villages have been electrified, and 470 762 households out of a total of 730 405 have been connected to the grid.