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Electricity Sector
Water & Sanitation Sector

Electricity Sector


The electricity supply industry in Lesotho is dominated by two state owned entities, namely the Lesotho Electricity Company (LEC), which is the monopoly transmitter, distributor and supplier of electricity, and the Lesotho Highlands Development Authority (LHDA), which is the main generator of electricity through its ‘Muela Hydro Power Station. The generating station is part of the Lesotho Highlands Water Project.

Changes took place in the electricity industry in the post-2000 period, when, as part of its programme on the restructuring of state-owned assets, the Government decided that LEC would be privatised, while ‘Muela hydro generation would be ring-fenced within the LHDA to ensure that its costs were known.

Accelerating the electrification programme in Lesotho is a key policy tenet of Government. LEC is supposed to be responsible for electrification within its service territory. Outside the LEC service territory, rural electrification efforts are currently managed by the Rural Electrification Unit (REU) of the Department of Energy (DoE). The LEWA has set up a Universal Access Fund which has started operations. In 2011 there over 10 electrification projects that were funded from the Fund. The Fund disburses monies for purposes of subsidizing the capital costs of electrification in the country. At the moment the source of the money to the fund is the electrification levy from the Lesotho Electricity Company (LEC). The Fund receives and disburses funds for the purpose of subsidising the capital cost of with the goal of facilitating the development and expansion of electricity service infrastructure in areas which have been identified by the Government.

All these have significance for the LEWA’s regulatory role and responsibilities. The LEWA has a significant role to ensure that electrification is accelerated. The LEWA is currently implementing a regulatory framework which provides certainty to suppliers while at the same time protecting the interests of electricity customers.

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