Electricity Tariffs Add Pressure To Households, Businesses

Botswana households and businesses are set to face higher electricity costs after the Botswana Energy Regulatory Authority (BERA) approved a nine percent tariff increase for the 2026/27 financial year, adding pressure to consumers already dealing with rising living costs. The new tariffs will come into effect on August 1, 2026, following an application submitted by the Botswana Power Corporation (BPC) on December 3. The utility had initially applied for an average tariff increase of 46 percent across consumer categories.

While the approved adjustment is significantly lower than BPC’s request, households are expected to feel the impact as electricity joins a growing list of essential expenses competing for limited income. For many families, monthly budgets are already under pressure from rising costs of food, transport, housing, education and debt repayments. The increase in electricity charges could force households to adjust spending elsewhere or find ways to manage their energy consumption.

The tariff increase comes against the backdrop of improvements in Botswana’s electricity generation capacity. According to the Electricity Generation and Distribution Statistics Brief for the First Quarter of 2026, local electricity generation increased by 20 percent quarter-on-quarter, rising from 751,514 MWh during the fourth quarter of 2025 to 901,903 MWh in the first quarter of 2026. The increase was largely driven by higher output from Morupule A and Morupule B power stations, alongside growing contributions from solar power plants.

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The report notes that the record-breaking generation figures demonstrate that solar infrastructure is operating at scale, providing a more stable alternative to diesel-powered generation. During the first quarter of 2026, Morupule A and B accounted for 90.8 percent of total electricity generation, producing 818,873.9 MWh, while solar plants contributed 9.1 percent, equivalent to 82,519.96 MWh. Solar facilities in Bobonong, Phakalane, Shakawe and Mmadinare contributed to the growing diversification of Botswana’s electricity sources.

However, economists caution that higher electricity production does not automatically translate into lower tariffs, as the cost of producing, maintaining and distributing power remains a key factor. Gomolemo Basele, a quantitative analyst with a banking background, said the cost of production remains one of the main factors influencing electricity tariffs.

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