Lesotho: LEC Granted 10 Percent Electricity Tariff Hike

...

CONSUMERS will have to dig deeper into their pockets to pay for electricity with effect from tomorrow.

RelatedNews

UK's Africa Minister jets in for maiden visit

October 6, 2021

1.4k

CBS scoops four excellence awards

October 5, 2021

1.4k

Bring on the Covid-19 passports: Vox Pop

This after the Lesotho Electricity and Water Authority (LEWA) granted the Lesotho Electricity Company (LEC) permission to hike electricity charges by 10, 37 percent.

This means that household customers will now have to fork out M0, 80 for a unit of electricity up from M0, 73 per unit.

LEC had applied for a tariff increase of 31 percent for the 2021/22 financial year to cushion its operations as prices for its key inputs have increased.

The state-owned utility company in its 2021/22 tariff review application to LEWA highlighted that it will need a minimum of M1, 241 billion to finance its operations.

However, LEWA chairperson Rebohile Mosito this week said the LEC would only be granted a 10, 37 percent increment to enable it to generate M1, 07 billion instead of the M1, 241 billion it had hoped to make.

"The LEC submitted a tariff application in which it requested a revenue requirement of M1, 241 billion and a resultant tariff increase of 30, 9 percent for the 2021/22 financial year," Mr Mosito told journalists in Maseru.

"Tariff reviews are conducted to ensure that regulated utilities charge appropriate tariffs to collect sufficient revenue to enable reliable and efficient operations at affordable charges."

Mr Mosito said in determining the new tarrifs, LEWA had considered several factors including the prevailing socio-economic environment, the impact of the Covid-19 pandemic and the affordability of electricity tariffs by customers.

He said on the basis of the information presented to it by the LEC and the public, they found no justification for granting the increment sought by the power utility.

"In line with the existing Covid-19 regulations and restrictions, LEWA requested stakeholders to submit written views, facts and evidence on the tariff application via social media platforms.

"Among other things, LEWA took into consideration that the increment that it approved will be sufficient for the LEC to operate effectively, pay for imported electricity, replace its ageing infrastructure and carry out repair and maintenance works that are essential for a reliable electricity supply," Mr Mosito said.

He said the current charges for electricity connections, wiring and testing should remain unchanged.

This year's hike comes on the back of two consecutive years where there were no tariff increments. Last year LEWA resolved not to increase tarrifs to cushion the public and other customers from the negative impact of the Covid-19 pandemic.

AllAfrica publishes around 700 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.

X