business

Sept. 29, 2021

STAFF REPORTER

2 min read

LEC to increase tariffs by 10 %

LEC to increase tariffs by 10 %

LEC Managing Director, Mohato Seleke

Story highlights

  • LEWA allows company revenue requirement of M1.07 billion
  • It has been three years since last tariff hike

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LESOTHO Electricity and Water Authority (LEWA), an electricity and water sector regulating body that regulates electricity, urban water and sewerage services has approved the Lesotho Electricity Company (LEC)’s 10 percent tariff increment application.

The approved tariffs are effective from October 1. This emerged during a press conference that was held by LEWA on Tuesday.
Relebohile Mosito, Chairperson of the LEWA Board, said following a board meeting that was held earlier that day, the LEWA board resolved that the electricity company be allowed a revenue requirement of M1.07 billion instead of M1.24 billion it had requested.  

He said based on facts and evidence presented to the authority by both the company and the public, including the prevailing social, economic and financial environment due to the impact of the COVID-19 pandemic, it was concluded by the board that the justification advanced by LEC for M1.241 billion was inadequate.
Mr Mosito said the decisions that included the tariff increment of about 10 percent instead of 30 percent were approved in accordance with the existing legal provisions for the financial year 2021/2022.
For his part, Mohato Seleke, the Managing Director of LEC said the company is pleased with the approval since it has been almost three years since the last tariff increase.

 

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This, he said will ease the work of the company in offering public services such as connections, wiring re-testing, survey, re-survey, licensing for writing, metre testing and house extension.
The current charges for connections, wiring re-testing, survey, re-survey, licensing for writing, metre testing and house extension are expected to remain the same. LeNA

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