24 Jul 2016

The Minister of Minerals, Energy and Water Resources, Mr Kitso Mokaila, has informed Parliament that  his ministry had a plan to establish water and power regulators, but this proved not feasible.
“Initially we had thrown an idea to government to establish energy and water regulatory authority, but this was not possible,” he said.

He said in 2012 when he joined the ministry, the idea was top in his agenda, but noted that cabinet only bought the idea to establish the energy regulatory authority, taking out water, reasons being that Botswana was sparsely populated, hence it would be an expensive investment because investors would want to recover costs of their investment which was not feasible given the smaller sparse population.

With regards to energy, he said the country was entering a time where there was need to have an independent power producers and therefore their regulation was unavoidable.

He further noted that he had made an urgent request to table the matter during the Julky sitting of Parliament and that he had taken the matter to the Attorney General for publishing.

“I think we will have an opportunity to engage about this matter during this sitting. I am begging for Mr Gaolathe’s indulgence and I am not postponing this matter because it will be brought before this house,” he said.

Legislator for Gaborone Bonnignton South, Mr Ndaba Gaolathe has tabled a motion requesting government to establish an independent autonomous water and power regulator.

When submitting the motion on Friday, Mr Gaolathe said establishment of a regulator would create an environment in which the water and power sector might benefit from significantly greater investment as well as efficiency and effectiveness gains, all of which are necessary to provide affordable water and power to citizens and for growth of industry.

Mr Gaolathe further said there was no doubt that Botswana has reached a stage whereby the country should get right the power and water sector because there was no way the country would develop various sectors that government has identified as necessary to develop the economy without the two commodities.

He said there were gains associated with the establishment of a regulator of water and power sectors as more opportunities will open up.
Mr Gaolathe said delaying the idea would create escalation costs and dire consequences of not establishing a regulator.

 “As you know the cost of power and water remaining high has got effects on the economy. One of the effects being that it would dissuade potential investors into the economy,’’ he said.

He said not having a regulator creates an opaque environment in which potential inventors into power and water sectors are so uncertain because independent power producers would be uncertain as to what the requirements were. Mr Gaolathe argued that establishment of a regulator of water and power would create an environment that is transparent and enabling participants to prepare to know what they were getting into.

He said Botswana has an opportunity to become a continental leader in power sector and that power could eventually become a major export earning beyond diamonds. Mr Gaolathe also argued that regulation of power and water would improve security and adequacy of supply and assist country in lowering the costs of production

By doing so,  he said it would also create inclusion for the poorer segment of society to have access to clean water and power.

“’The incentive would in turn also improve investment within power and water sectors,” he said.

Mr Gaolathe also suggested that  the main  areas to be regulated  include pricing, negotiation of power purchase agreements, consumer protection and managing monopolies as well as issues of access geographically. Ends