ORDER OF THE LESOTHO
ELECTRICITY AUTHORITY BOARD ON THE MINISTRY
OF NATURAL RESOURCES (THE DEPARTMENT OF
ENERGY) LICENCE EXEMPTIONS FOR THE
ELECTRICITY ACCESS PILOT PROJECTS (EAPPs)
IN THE VILLAGES OF DILLI-DILLI/SIXONDO, HA
SEKAKE AND QHOLAQHOE
The Board of Lesotho
Electricity Authority (hereinafter referred
to as “the Board”):
-
HAVING
received an application from the
Ministry of Natural Resources through
its department, the Department of Energy
(DoE) (hereinafter referred to as “the
Department”) on 15th August
2007 for licence exemptions for a period
of one year to distribute and supply
electricity in the villages of
Dilli-Dilli/Sixondo, Ha Sekake and
Qholaqhoe;
-
HAVING
solicited public inputs and comments on
the application in terms of the LEA Act
as amended;
-
AND HAVING
reviewed the application
together with supporting documentation,
makes an Order with the following terms;
-
The application for
Licence Exemptions to distribute and
supply electricity in the villages
of Dilli-Dilli/Sixondo, Ha Sekake
and Qholaqhoe is granted with the
following conditions;
a)
The duration of the exemption
is one year from the date of issue;
b)
The Department shall submit
quarterly reports on progress made regarding
transfer of assets;
c)
The Department shall present
a detailed report, to the LEA six (6) months
before the expiration of the exemption
period, regarding preparations for the
take-over of the projects.
d)
The Department shall submit a
quarterly report that includes, amongst
others, monthly revenue and costs, bulk
supply, operation and maintenance costs,
energy consumption and customers served; and
e)
The Authority may, from time
to time, impose any other condition.
-
The Department shall
apply tariffs that will, at the
least, allow recovery of energy
supply costs. Consequently, the
applicable tariffs for Dilli-Dilli/Sixondo
shall be not less than 0.51/kWh.
-
The tariffs
applicable to Ha Sekake and
Qholaqhoe projects shall only be
finalised once a fuel supply
contract and the Power Sales
Agreement have been submitted and
analyzed.
HAVING
considered the real costs of manning the
EAPPs, the Board concludes that the
Department should consider and employ cost
effective measures to minimise subsidies.
BY ORDER
LESOTHO ELECTRICITY AUTHORITY
BOARD
