LEC (Pty) Ltd‘s Composite licence was issued on the 19^th December 2006 authorising LEC to conduct its core business (transmission, distribution and supply) in perpetuity. LEC is exempted from the requirement to hold a generation licence to hold a generation licence because the capacity of its generating stations falls below the defined threshold limit of 5 MW.

In providing its services, LEC is required to comply with the standards as prescribed in the Quality of Supply and Service Standards (QOSSS). Furthermore, the Licensee is required to develop Codes of Practice on payment of bills, disconnections, complaints handling procedure and on efficient use of electricity. 

The Licence has charge restrictions, which follow the performance-based regulation approach. The tariffs are regulated through revenue cap (for transmission and distribution) and the price cap for supply business. LEC has a defined service territory within which it has exclusive supply.