LEC hikes tariffs by 9.6%

THE Lesotho Electricity Company (LEC) has increased power tariffs by 9.6 percent. The new tariffs were approved by the Lesotho Water and Electricity Authority (LEWA) yesterday.

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The LEWA board said the increment was done “based on the increased prices the LEC buys electricity from Eskom and other sources”.

The LEC buys electricity from ’Muela Hydro-power station, Eskom in South Africa and EDM in Mozambique through 132kV and 88kV networks.

In Qacha’s Nek, LEC buys electricity from Eskom through a 22kV line from Matatiele in South Africa.

Qacha’s Nek is the only district that is not connected to the main national grid.
It produces 72 MW from ’Muela).

The LEC has about 150 MW peak power and imports more than 70 MW mainly from Mozambique (29 percent of peak demand) and 20 percent of its peak demand from South Africa.

The effective tariff increment will be effective April 1 for all customer categories.

LEWA said the increase will be on both energy and maximum demand charges of LEC to meet their standard needs for the financial year 2023-2024.

Pholo Letete, a member of the LEWA board, said they raised awareness to the public about the proposed new tariffs on January 18.

Letete said they also announced the proposed tariff increment on radio stations and also held public gatherings in Quthing, Mokhotlong, Thaba-Tseka, and Qacha’s Nek.

He said the public complained about the poor service delivery by the LEC and the poor state of the economy in the country as they objected to the proposed tariff hike.

“Most people understand that we buy electricity from other countries, where we do not influence the prices set,” Letete said.

He said some citizens rejected the new proposed tariffs saying the increase is bad news as most consumers were struggling financially but others agreed to the adjustments.

Another LEWA board member, Motlatsi Ramafole, said before adjustment they focused on whether the LEC adjustments would be sustainable or not.

Ramafole said they also analyse affordability.

He said they do not have control if Eskom decides to increase prices, they have to abide by the decisions made.

Ramafole said not buying electricity at the set prices could lead to load shedding in Lesotho.

“The LEC submitted a modified tariff review application on 12th January 2024 and after that the authority conducted public consultations and adhered to the people’s comments,” Ramafole said.

Khahliso ’Molaoa

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