Public Hearings on LEC Application for Tariffs Adjustment for 2018-19

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  1. Introduction

In May 2018, the Lesotho Electricity and Water Authority (LEWA) announced to 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, 2002, as amended. LEC holds a composite license issued in terms of Section 50 of the Lesotho Electricity Authority Act no. 12 of 2002, as amended.

  1. The application and tariff drivers that LEC cites therein:

LEC submitted a modified application for tariff adjustment of 22.1% on both Energy and Maximum Demand (MD) charges across all customer categories, which translates into a Revenue Requirement of M 1.03 billion on 03rd May 2018.

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

 

Copies of the application are still available from LEWA offices and website: www.lewa.org.ls .  Other copies are at the District Administrators’ offices.

 

Invitation for public hearings:

In accordance with Section 24(6) of the Act, as amended the ESI stakeholders and general public are invited to participate at public hearing sessions, which are scheduled as below:

Date Venue Time
03 July 2018 Quthing : Hillsview Guest House 09:00am
06 July 2018 Butha-Buthe: Crocodile Inn Hotel 09:00 am
10 July 2018 Maseru: Victoria  Hotel 09:00 am

 

Issued by: LEWA, 7th Floor Moposo House Kingsway Maseru Tel: 22312479

E-mail: [email protected]

Introduction

In May 2018, the Lesotho Electricity and Water Authority (LEWA) announced to 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, 2002, as amended. LEC holds a composite license issued in terms of Section 50 of the Lesotho Electricity Authority Act no. 12 of 2002, as amended.

 

The application and tariff drivers that LEC cites therein:

LEC submitted a modified application for tariff adjustment of 22.1% on both Energy and Maximum Demand (MD) charges across all customer categories, which translates into a Revenue Requirement of M 1.03 billion on 03rd May 2018.

 

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

 

Copies of the application are still available from LEWA offices and website: www.lewa.org.ls .  Other copies are at the District Administrators’ offices.

 

Invitation for public hearings:

In accordance with Section 24(6) of the Act, as amended the ESI stakeholders and general public are invited to participate at public hearing sessions, which are scheduled as below:

Date Venue Time
03 July 2018 Quthing : Hillsview Guest House 09:00am
06 July 2018 Butha-Buthe: Crocodile Inn Hotel 09:00 am
10 July 2018 Maseru: Victoria  Hotel 09:00 am

 

Issued by: LEWA, 7th Floor Moposo House Kingsway Maseru Tel: 22312479

E-mail: [email protected]

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