In this week’s analysis we zoom in on the study commissioned by Lesotho Water and Electricity Authority (LEWA). The study was intended to establish the impact of the lifeline tariffs for electricity and water supplies in Lesotho.
Our analysis will be divided in three parts, Part 1: how lifeline tariff is bankrupting LEC, Part 2: diagnosis of LEC’s real problems and Part 3: A 2002 act will sink LEC in couple of years
The report focused on the Electricity Supply Industry (ESI) while a second report focuses on the Urban Water and Sewerage Services (UWSS).
Part 1: how lifeline tariff is bankrupting LEC
According to MRC Group and National University of Lesotho Energy Research Centre, who were appointed to carry out the said study, “Separate reports for the electricity and water sectors are provided as the sector characteristics are distinct and there is therefore no advantage in reporting the
analysis and results in a combined report…”
“Separate reports also avoid any confusion between the sectors related to the information, analyses, conclusions or recommendations of the study.”
Our focus will therefore be on the ESI, lifeline tariff, which was implemented in 2019/20 and its impact was analysed by comparing relevant variables at least 5 years before the implementation with those recorded in the years that have passed since.
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