Licensees

The LEWA Act requires all persons generating, transmitting, distributing or supplying electricity to do so under the authority of a licence granted by the Lesotho Electricity Authority (LEWA). The licences contain conditions, which allow the LEWA to regulate the licensee’s electricity business effectively and efficiently to benefit electricity customers generally.

The way in which the LEWA regulates is through the issue and modification of licences. The LEWA Act provides that no person may undertake a regulated activity without being in possession of a licence issued by the LEWA. It is an offence to conduct a regulated activity without a licence. Provision is made in the LEWA Act for certain exemptions from the licensing requirements. The ‘base criteria’ for the granting of a licence is that the LEWA must be satisfied that the prospective licensee has an appropriate financial standing, technical and managerial competence. The licences contain various conditions relating to electricity tariffs and prices, electrification commitments and quality of supply and service standards. Licences may not be transferred without the approval of the LEWA.