There will be a zero percent tariff increase on the Energy and Maximum Demand (EMD) charges for all customer categories in 2019/2020. This was revealed during Thursday’s media briefing convened by the Lesotho Electricity and Water Authority (LEWA) where the Board Chairman, Mr Rets’elisitsoe Mosito explicated that the decision was among others reached at the Board meeting held the same day. The Board Chairperson also explicated that the Board approved that Lesotho Electricity Company (LEC)’s Revenue for Financial Year 2019/2020 will be M901.48 million instead of M1. 075 billion as requested by the Company while the current charges for connection, wiring testing, wiring re-testing, survey, re-survey, licensing for wiring, meter testing and house extension remain for the same year. A press statement from LEWA also states there will be a two-level block-increasing tariff with lifeline tariff for domestic customers, the first block which is for customers consuming between zero and 30 kilowatt per hour (kWh) which is priced at M0.7273 per kWh while the second block is for consumers using above 30 units which is set at M1.4782 per kWh. “The new tariffs become effective from May 01 2019,” reads the statement. Reasons for the decision are on the other hand said to be based on the facts and evidence presented to the Authority by both the Company and the public, which led to the Authority finding that the justification for 14,2 percent tariff increase on both EMD not consistent with LEWA’s regulatory Principles and Guidelines. The Authority says it thus took into consideration, amongst other things that, in order to meet its Revenue requirement of M1.075 billion, energy and maximum demand charges would need to increase by 17.0654 percent, that the LEC’s Revenue Requirement for the current financial year is M901.48 million and that in order to meet it, the tariff will decrease by -1.9116 percent for both energy and maximum demand charges without the introduction of lifeline tariff to cater for disadvantaged customers. LEWA hence asserted that introducing pro-poor tariff is in line with the Energy Policy approved in 2015 and is within the LEWA mandate to do so in terms of the Lesotho Electricity Act 20202, as amended and Electricity Price Review and Structure Regulations 2009. LEWA meanwhile received an application for a tariff review from the LEC on January 15 and it in line with the Tariff Filing and Review procedure, identified data gaps in the application and communicated such to the LEC on February 01. The LEC application requested an approval for revenue requirement of M1.075 billion for the current financial year which would be met by a proposed tariff increase of 14.2 percent for both energy and maximum demand charges. The company had amongst other various tariff drivers, cited it had to cover the electricity bulk purchases costs mostly imports, operating expenditure costs, return on assets and depreciation costs. A public notice was subsequently issued in from February 4th to 28th for stakeholders to provide their comments. Lena