NARUC - Global Regulatory Network

Profiles

Lesotho		Lesotho Electricity Authority (LEA) • Official website: to be designed. • The office of Lesotho Electricity Authority (LEA) started operation on the 1st of August 2004. The office will initially consist of five key staff. • The LEA board members were selected through competitive recruitment. There are currently seven board members, appointed for three years. • LEA is responsible for regulation of the entire electricity sector (e.g. approval of tariff and price, licensing, etc.) • The office of the regulator will be financed through licensing fees and contributions from electricity consumers. Electricity Industry and Market Structure • The Lesotho Electricity Corporation (LEC) is currently owned by the Government. There is also a generation facility owned by Lesotho Highlands Development Authority (LHDA), 'Muela Hydropower Plant, 72MW. LHDA is also a government-owned entity charged with Lesotho Highlands Water Project and the hydro power plant is part of water transfer to South Africa. • LEC will initially have both transmission and distribution licenses. LHDA will remain the main generator in the country. Current Energy Issues The electricity sector is in the process of reform. This started with the drafting of the Lesotho Electricity Authority Law in 2000 and the commercialization of the LEC operation since February 2001. LEC will eventually be privatized through a 'Public Concession Model'.
Key Statistics (2003) • Population: 2.2 million • GDP (US$): $1 billion • Electricity generation: fossil: 501.44 MW/hrs hydro: 383 818.26 MW/hrs • Electricity consumption: 333 271 MW/hrs • Electricity imports: 49 325 MW/hrs • Electricity exports: 35 320 MW/hrs • Electricity market size: 16168.1 GWh/year • Installed capacity: 74 MW • Electricity prices for households (US$): Approx. 6¢ per kWh