Tuesday 11 December 2007

Modubule against liberalisation of power supply ( 11 December, 2007)

Some parliamentarians have questioned the logic behind governments proposal to liberalise the electricity supply sector to include independent power distributors who will depend on the Botswana Power Corporation (BPC) infrastructure.

Commenting on the electricity supply amendment bill last week, the MP for Lobatse, Mr Nehemiah Modubule rejected the proposal, saying it will not enhance competition because the competitors will be forced to use (BPC) infrastructure.

Mr Modubule argued that the main reason behind the proposed liberalisation is to prepare BPC for privatisation, adding that his party is opposed to the privatisation of public enterprises, especially those that are offering essential services such as power and water.

He said the government should have created an electricity supply regulatory body before it proposed amendments to the electricity supply law.

Mr Modubule appealed to the government to ensure that electricity connections were affordable, saying they were currently far beyond the means of ordinary people.

He also complained that people who apply for connections at new places that do not have electricity facilities are required to pay huge sums of money to purchase transformers, but that subsequent applicants are not required to contribute towards reimbursing the first applicant.

He said the ownership of the transformer purchased by the BPC consumer is not for that individual but is the property of the corporation.

Mr Modubule proposed that the government should absorb the costs of connecting electricity to houses and allow customers to pay the costs in installments.

Mr Mephato Reatile of Ngwaketse West said he supports the bill. He, however, questioned the criteria that the corporation uses to determine connection fees, adding that in some cases the cost of connection was higher than the value of the house being connected.

For his part, Mr Nonofo Molefhi of Selebi-Phikwe East also supported the proposed amendments. He expressed hope that the electricity cooperation between South Africa and Botswana would include other projects.

He suggested that the government should collaborate with the Botswana Development Corporation to identify investors who could embark on projects of the magnitude of Mmamabula and then later sell shares to local entrepreneurs as a means of citizen economic empowerment.

Mr Molefhi said he was worried that some Batswana sell their licence stakes without appreciating the benefits that they could get in the long term.

He urged the government to bear the costs of connecting people to ensure that electricity was accessible to the majority of the population.

Another MP who supported the bill is Mr Isaac Mabiletsa of Kgatleng East. He urged the government to ensure that Batswana had shares in important projects such as the Mmamabula coal mine and power station by facilitating their entry into big business ventures.

He requested the minister of minerals, energy and water resources to explain how the proposed project would impact on the unemployment and on what the revenue accrued from the project would be used for.

He proposed that the government should draft laws to compel big companies to enter into joint ventures with locals in order to empower them economically.

He said it was regrettable that Botswanas economy was by-and-large controlled by foreigners.

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