Notice on LEC Application for Tariffs Adjustment

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PUBLIC NOTICE ON LESOTHO ELECTRICITY COMPANY (PTY) LTD’S (LEC) APPLICATION FOR TARIFFS ADJUSTMENT FOR THE FINANCIAL YEAR 2018-19

Introduction

The Lesotho Electricity and Water Authority (LEWA) informs the Electricity Supply Industry (ESI) stakeholders and the general public that, the Lesotho Electricity Company (LEC) has filed a tariff application modification for a review of electricity services tariffs for the Financial Year 2018/19. This application is in line with Section 24 of the LEA Act, as amended. LEC holds a composite licence issued in terms of Section 50 of the Lesotho Electricity Authority Act no. 12 of 2002 (LEA Act), as amended.

The application and tariff drivers that LEC cites therein:

 On 03 May 2018 LEC submitted a modified application for tariff adjustment of 22.1% on both the Energy and Maximum Demand (MD) charges across all customer categories. This modified application is a 1.1 % reduction from a 23.2 % tariff proposal submitted by LEC to LEWA on 23 January 2018. The newly proposed adjustment translates into a Revenue Requirement of M 1.03 billion.

In particular, LEC has mentioned the following cost items as the main components of its revenue requirement:

 

Item Projected Cost
The Electricity Bulk Purchases costs (mostly imports)  M 415 million
Operating Expenditure M 297 million
Depreciation costs M 113 million
Maintenance costs M   64 million
Diesel for Semonkong  power generator M     2 million
Return on assets costs M 135 million

 

Public access to the application:

Copies of the application can be obtained from LEWA offices and website: www.lewa.org.ls .  Other copies will be available at  the District Administrators’ offices in the country from 21st  May 2018.

Invitation for public comments:

In accordance with Section 24(6) of the Act, as amended the ESI stakeholders and general public are invited to make and forward their comments and inputs on the application for consideration before LEWA makes a final determination on it. People who wish to present their views before the LEWA Board, at public hearing sessions, are requested to indicate so in writing, when submitting their comments. The deadline for receiving written comments is Friday 01 June, 2018 at 17:00.

 

Comments or enquiries may be sent to:

  The Manager
Economic Regulation DepartmentLesotho Electricity and Water Authority

7th Floor Moposo House, Maseru

P/Bag A315 , MASERU

Email: [email protected] /[email protected] 

Tel:  22 312479

Fax: 22 315094

 

 

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