23 February 2012 | 06:37 AM
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FAQ's

QUESTION
What is the NATIONAL ELECTRICITY STANDARD CONNECTION COST (NESC)?
ANSWER
A household electricity connection cost of P5,000.00 that when completely rolled out, shall apply to households in electrified settlements, villages, towns and cities across the country. The amount shall be reviewed by the Government from time to time.


QUESTION
What is the aim of the National Electricity Standard Connection Cost?
ANSWER
This is one of the Government initiatives to make household electricity connections affordable, thereby improving access to electricity.



QUESTION
Where is the connection subsidy coming from?
ANSWER
The subsidy comes from a 5 thebe per kilo-watt hour levy charged on electricity consumers. For example, a customer whose current monthly consumption is 100 units at 40 thebe per unit pays P40 per month.

The introduction of the levy will result with the same customer paying an additional P5.00, bringing their total bill to P45.00 per month.



QUESTION
What is a kilo-watt hour?
ANSWER
The amount of electrical energy consumed in one hour by 17 incandescent bulbs (60 watts old type) or 100 compact fluorescent lights (10 watts) bulbs.



QUESTION
When will the scheme begin?

ANSWER
NESC shall be implemented in phases as outlined below

  • 1st Phase
    1st October 2010
    Customers in villages or areas that have standard cost begin to benefit and connect at NESC. The prevailing standard cost conditions will apply under the NESC.
  • 2nd Phase
    1st October 2011
    Customers in villages or areas with no standard cost and towns begin to benefit and connect at NESC



QUESTION
Why is NESC rolled out in phases?
ANSWER
It is necessary to stagger implementation of NESC because the 5 thebe levy cannot generate enough funds to roll out the scheme to all customers at the same time.


QUESTION
Can it be implemented in retrospect?

ANSWER
No. NESC only applies to new connections. Customers with running BPC contracts shall have to honour those contracts.



QUESTION
What happens to customers in villages or areas not covered by NESC?

ANSWER
The existing BPC procedures, terms and conditions for obtaining power connection shall apply as follows;

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SCHEME A
Where the connection is part of the Rural Collective Scheme and within the official boundaries of a village, the following conditions shall apply:

Supply of less than 35kW

Upfront payment of minimum of 5%
Balance of 95% repayable as follows:
18 months at no interest, or
60 months at prime interest rate less 0.5%, or
180 months at prime interest rate.

 

Supply of 35kW or more

 Upfront payment of minimum of 10%
Balance of 90% repayable as follows:
12 months at no interest
60 months at prime interest rate less 0.25% or
120 months at prime interest rate.

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SCHEME B
Where the connection does not form part of Rural Collective Scheme, and with connection amount not exceeding P50 000.00

Supply of less than 35kW

Upfront payment minimum of 20%
Balance of 80% repayable as follows:
12 months at no interest, or
60 months at prime interest rate less 0.5%
120 months at prime interest rate (limited to amount of less than P50 000.00).

 

Supply of 35kW or more

Upfront payment minimum of 20%
Balance of 80% repayable as follows:
6 months at no interest, or
60 months at prime interest rate less 0.25%
120 months at prime interest rate (limited to amount of less than P50 000.00).

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SCHEME C
Where the connection does not form part of the Rural Collective Scheme with the connection amount exceeding P50 000.00

Supply of less and greater than 35kW, upfront payment minimum of 20% Balance of 80% repayable as follows:

12 months at no interest, or
36 months at prime interest rate less 0.25% or
60 months prime interest rate plus 0.30%.

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QUESTION
What happens in villages or areas where the current standard cost is lower than the NESC?

ANSWER
The NESC shall apply i.e. the NESC amount will be a standard connection cost and shall be payable by all customers.



QUESTION
Who are the beneficiaries?

ANSWER
Households only (domestic customers) for 60 Amps single phase supply. Applicants for a 60 Amps three phase supply will benefit to the extent of the cost of the 60 Amps single phase supply.



QUESTION
Can a customer benefit more than once?

ANSWER
Yes. The benefit is directed at households but not individual customer.
QUESTION
Is the NESC the maximum a customer can pay?

ANSWER
No, additional to the NESC, customers pay Value Added Tax and where they are applying for a credit facility; they shall pay the credit worthiness checks related charges by ITC.



QUESTION
How are customers expected to pay the P5, 000.00?

ANSWER

Customers have the following payment options;

1. Outright payment
2. Credit facility that shall apply as follows;
    a. Upfront payment of minimum of 5%

    b. Balance repayable as follows:
        i. 6 months at prime less 6%
        ii.   12 months at prime less 4.5%
        iii. 18 months at prime less 2%

 



QUESTION
What are application procedures?

ANSWER
Application procedures remain the same, customers apply to BPC.



QUESTION
Will customers be subjected to credit worthiness checks?

ANSWER
Yes, only for customers intending to apply for the credit facility. If they fail to meet the laid down criteria the loan will not be granted.



QUESTION
Will all applications from qualifying villages connect at NESC?

ANSWER
Yes, subject to satisfying certain predetermined distances that qualifies one to be within the NESC area which currently is 500m from source.



QUESTION
Is the Government contributing financially to NESC?

ANSWER
No. The Government does not contribute financially to NESC, her role is facilitator.



QUESTION
What is the age restriction to benefit from NESC?

ANSWER
NESC has no age restriction. However, individuals aged 60 years and above shall not benefit from the credit facility, and shall pay the NESC amount outright.



QUESTION
Will housing developed by Estate Developers connect at NESC?

ANSWER
No.



QUESTION
Will residential dwellings built in small holdings (masimo, meraka) benefit from NESC?

ANSWER
No.



QUESTION
Where can one get further clarifications on NESC?

ANSWER
Customer Service Manager.
 

13 | 10 | 2011
Orapa 90MW Turbine power plant handed over to BPC
Orapa 90MW Turbine plant was officially launched  on Thursday  13th October 2011 and was handed over to Botswana Power Corporation by Debswana Manging Director Jim Gowans.

03 | 10 | 2011
BPC EXHIBITS AT THE 2011 WORLD HABITAT DAY COMMEMORATION
The world habitat day is an annual event held on the first Monday of October under different themes.


+ 267 360 3000



+ 267 360 7000



+ 267 492 0200



+ 267 241 2794



 

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