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Ministry of Minerals, Energy and Water Resources (MMEWR)
Implementation of NATIONAL ELECTRICITY STANDARD CONNECTION C...
13/08/10
Implementation of NATIONAL ELECTRICITY STANDARD CONNECTION COST (NESC) To date government has spent more than P1.3 billion to electrify 344 villages out of 462 villages (2001 census).

To date government has spent more than P1.3 billion to electrify 344 villages out of 462 villages (2001 census).

However, not all households have been able to connect because the cost varied from P2 219.64 to P17 500.00 in areas with a standard cost. Therefore only 221 800 households are connected to the grid out of a possible 261 017. The National electricity access to date is 60.7%.

There are no funds for the Government to fully subsidize the cost of connections. However Government has developed a scheme called National Electricity Standard Connection (NESC) and National Electrification Fund (NEF) to help Batswana to  connect electricity at a standard price of P5 000.00 irrespective of location but subject to the rollout programme.

On 1st April 2010, Government introduced an electricity levy of 5 thebe per kilowatt hour consumed. A kilowatt hour is 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.

The levy is payable monthly by all electricity customers to generate money for the Fund from which household connections will be subsidized.

 

For instance, for every connection cost in excess of the P5000.00 NESC will pay the difference between the actual cost quoted and the NESC value e.g. where the actual connection cost is P17, 500.00, the customer will pay P5 000.00 and the balance of P12,500.00 will be absorbed by the Fund on behalf of the customer.  This is the benefit of the 5 thebe per kilowatt hour monthly payment.

In view of the budgetary constraints the rollout of NESC will be done in phases in order to ensure sustainable implementation of the scheme.

 

Phase 1, will begin on the 1st October 2010 for customers in areas that already have a standard cost. The prevailing standard cost conditions will apply under NESC – these being:

o   A 60 Amps overhead connection to households;

o   Upfront payment of 12% VAT and 5% deposit;

o   Credit worthiness checks on customers wishing to pay by installments.

Phase 2, which will be for areas without standard cost will begin to benefit and connect at NESC by the 1st 0ctober 2011.

 

Ideally, Government would have liked to shorten the period within phases but it has not been possible to do so due to lack of enough funds. Implementation must therefore be staggered in a phased manner because the 5 thebe per kilowatt hour levy does not generate enough funds to rollout the scheme to all customers at the same time.

 

In September, the Information, Education and Communication (IEC) programme will be launched to facilitate smooth implementation of NESC.

 

 

With the extensive and intensive village electrification programme that has hitherto taken place, increase in access to electricity is justified in order to improve the quality of life of the people and optimally use the huge investment that has been made.

 

The Ministry, therefore, will do all that it takes to ensure that the National Electricity Standard Connection Cost and the National Electrification Fund yield the desired results.

 

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