Breaking News

Cushion citizens from increasing energy tariffs

20 Jul 2022

It is imperative for energy regulators in the SADC region to devise strategies that can help cushion citizens from increasing energy tariffs.

“As regulators, we should be able to strike a balance to guarantee affordability for our customers and also sustainability of utilities themselves,’’ said Regional Energy Regulators Association of Southern Africa (RERA) chairperson, Mr Motlatsi Ramafole.

Speaking at the organisation’s executive meeting held in Maun recently,  he said escalating energy tariffs had resulted in people questioning the work of energy regulators.

Mr Ramafole said it was critical for regional energy regulators to move in a standardised manner to ensure security of supply in the energy sector.

The sector, he said,  had been challenged by the volatile global economy and fluctuating inflation.

The RERA chairperson blamed the current global socio-political landscape for the  adverse effects which had led to increasing energy tariffs.

He explained that it was RERA’s mandate to set a standard for all the regulators in order for them to have a uniform approach and build capacity for setting energy tariffs.

Mr Ramafole said SADC ministers responsible for the energy portfolio were working to facilitate the smooth functioning of RERA to enable security of supply and ensure that the energy sector was not threatened.

He stressed the importance of  looking into alternative sources of energy to augment traditional methods.

Mr Ramofole said bringing in Independent Power Producers (IPPs) into the energy sector was a welcome development because they brought alternative sources of energy especially in the hard to reach places and also assisted in economic growth.

Botswana Energy Regulators Authority (BERA) chairperson, Mr Justice Moilwa said Botswana was in the process of developing its power sector through different methods such as the diversification mix.

He cited ongoing projects in Bobonong and Shakawe geared at generating power through solar energy.

Mr Moilwa said another initiative was to bring in IPPs, the latest being Tlou Energy with the building of a gas station in Sanveld.

‘’It is our belief that the challenges of high energy demand and soaring prices can be addressed by bringing on board IPPs to diversify generation resources and expand capacity, he said.

Mr Moilwa stated that the development of a SADC grid code for electricity supply would address the region’s electricity deficit if implemented on time. Ends

Source : BOPA

Author : Portia Ikgopoleng

Location : MAUN

Event : RERA Executive Meeting

Date : 20 Jul 2022