18 Oct 2018

The Parliamentary Committee on Statutory Bodies and State Enterprises has urged Botswana Energy Regulatory Authority (BERA) to take charge.

This came in the wake of the recent hike in tariffs of petroleum products, and the fact that the increase was done without taking into consideration the dictates of the law.

Members questioned the rationale used by BERA to hike the tariffs if it had no idea how much money was in the National Petroleum Fund (NPF).

They said money in the fund should be the basis to assist BERA in determining the fuel price margins.

“We take it that you should take into consideration the operations of the NPF when you do such increase,” said the chairperson of the Committee on Statutory Bodies and State Enterprises, Mr Guma Moyo .

It became apparent that the petroleum products hike was done outside the confines of Botswana Energy Regulatory Authority (BERA) Act, the body that has been given the mandate do so.

The regulatory  authority board chairperson, Mr Bernard Ndove acknowledged that there was still confusion as to which instrument should be used with regards to announcing and effecting adjustments of petroleum products.

According to the act, “the authority shall from time to time and by notice in the gazette publish the tariff review processes.”

Mr Ndove acknowledged that the petroleum prices were not published in the gazette, and that the methodology that was supposed to be used to determine the increase was not used.

“I am still to get answeres from the ministry as to what should be done because the basis of process of fuel prices increase is meddled with confusion,” he said.

He noted that BERA was given the mandate to determine the prices, but said that instead the instrument from the Department of Energy Affairs under the Ministry of Mineral Resources, Green Technology and Energy Security was used, and not the one from BERA to effect the recent increase.

He, however, said BERA ensured that variables that were inputs into the pricing were done and seconded to ministry for final determination.

Meanwhile, BERA CEO, Ms Rose Seretse said BERA was currently going through a transition phase as it was a new entity that came into effect a few months ago.

Committee members advised BERA to take control of the energy sector.During the sitting, it also became apparent that four BERA board members worked at the authority on a full-time basis, something which surprised the statutory bodies committee.

They questioned how they would do their work efficiently if they also served as board members.

“How do board members work as full-time employees when they are supposed to be an oversight body,” asked Gabane-Mankgodi MP, Maj. Gen. Pius Mokgware.

Botswana Energy Regulatory Authority is a parastatal under the Ministry of Mineral Resources, Green Technology and Energy Security, and was established following an Act of Parliament in 2016. The implementation of the act commenced in September 2017 following the appointment of board of directors and senior management. ENDS