Khama approves Energy regulatory body

President Ian Khama has assented to the Botswana Energy Regulatory Authority Bill which was passed by Parliament in August 2016, Business Trends can reveal.

Principal Energy Engineer in the Department of Energy, Baruti Regoeng revealed to Business Trends this Tuesday that, on the 26th September last week, President Khama put his signature to the bill. “What is now left is to establish the office of the energy regulator and this will happen once the Minister signifies the commencement date.

This office will need to be financed and we are already towards the end of the financial year,” he explained.This comes at a time when industry players such as Botswana Oil and multinational operators amongst others, had been pressing for the establishment of the regulatory body.

At the time the bill was passed in August, the then Minister of Ministry of Minerals Energy and Water Resources, Kitso Mokaila, told parliamnet that the authority would be responsible for providing an efficient regulatory framework for the regulated sector in accordance with the Act, with the primary mandate of providing the economic regulation of the sector.“It would be responsible for ensuring sustainable and secure supplies in the regulated sector.

Ensuring tariffs in the regulated sector are fixed on the basis of a tariff methodology that has been set up in a transparent manner taking into account government policy on cross subsidies between classes of consumers and setting and maintaining standards,” Mokaila stated.

The authority would also be expected to protect and preserve the environment as well as ensuring that the regulation of the energy sector is done in accordance with the best international regulatory practice.

According to the minister the authority will have functions such as regulating tariffs, including allowed revenue for regulated entities and regulate coal supply agreements between collieries, coal suppliers and price-regulated generators.