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.

Advancing the electrification drive in Lesotho

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.

Electricity

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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Electricity Sector