Tuesday December 19, 2006

For immediate release

LEA ISSUES LICENCES TO LEC AND LHDA

The Lesotho Electricity Authority (LEA) Board today issued the generation licence to the Lesotho Highlands Development Authority (LHDA) and a Composite Transmission and Distribution and Supply Licence the Lesotho Electricity Company (LEC) today.

The issuing of the two licences to LEC and LHDA means that the Authority has now assumed its full regulatory mandate as spelled out in the Lesotho Electricity Authority Act of 2002 and the LEA Amendment Act No.6 of 2006. Currently, the LHDA and the LEC are the largest players in the Lesotho Electricity Supply Industry (ESI). The LHDA, through its ‘Muela Hydropower plant generates more than 70 Megawatts (MW) of electricity for use by customers in Lesotho. Under a Power Sales Agreement between LHDA and the LEC, the latter is responsible for transmitting and distributing electricity from ‘Muela to customers in throughout the country.

Under the new regulatory framework both the LHDA and the LEC are expected to open up their operations for scrutiny by the regulator. The regulator acts as a guardian of the interests of the electricity sector stakeholders who are the Government, Customers, the Licensees themselves and Investors. Up to now, the LEA had only been able to perform its duties to a limited extent.

The LEA has already prepared a set of rules and guidelines that allow investment and private participation in the electricity sector and its assumption of full regulatory mandate is a positive step for the sector. Ends.

CONTACT PERSON : CUSTOMER AFFAIRS DIRECTOR
CHIEF EXECUTIVE’S OFFICE
LESOTHO ELECTRICITY AUTHORITY
PRIVATE BAG A315
6TH FLOOR
MOPOSO HOUSE
KINGSWAY STREET
MASERU

TEL: 22 312 479
FAX: 22 315 094