Rethabile Pitso
THE Lesotho Electricity Company (LEC)’s interim Managing Director, Tšeliso ‘Mokela, has called for government support to keep the utility operational, warning that without it, Basotho could face stiff tariff increases.
Mr ‘Mokela, who has admitted that past administrations had mismanaged the company, stressed the importance of public understanding regarding the challenges the LEC was currently facing and appreciate the ongoing efforts to rehabilitate the utility under the leadership of the new Board which he said had been offering him the best support.
He was appointed acting MD in October 2025 following the suspension of substantive MD Mohlomi Seitlheko and others in March this year. His appointment came amid revelations of unethical practices uncovered by the Public Accounts Committee, stemming from the behaviour of previous mismanagement teams.
Mr ‘Mokela told the Lesotho Times yesterday that the LEC was struggling to sustain itself and therefore needed a government subvention.
He said the LEC aimed to reduce its executive management team from 11 members to five as part of efforts to cut costs.
“The truth is, LEC is not financially sustainable and requires government support in the form of a subsidy to maintain daily operations,” Mr ‘Mokela said.
“Currently, about 80% of LEC’s expenditure goes toward importing electricity. Despite buying at high costs, we offer the lowest tariff rates in the SADC region. For instance, during peak hours we purchase electricity from Eskom at around M6 per unit but sell it to Basotho at approximately M1.45. The subsidy ensures Basotho benefit from the lowest rates.”
The situation was patently not sustainable.
Mr ‘Mokela said while the utility had not requested market related tariff increases from the Lesotho Electricity and Water Authority (LEWA), market related tariff adjustments would become unavoidable unless the gap created by the inequitable pricing was filled by the government.
He also highlighted the financial strain caused by subsidized connection costs.
“Residents connecting within a 5-metre radius currently pay only M2000, although the actual cost is around M14,000. Clients also receive 30 free units each month. While intended to assist rural communities, these incentives are accessed by all, rich and poor alike.”
The interim MD noted that Prime Minister Sam Matekane had directed that rural communities be connected without fees, but individuals applying independently would still pay the M2000 charge, which barely covers costs. Maintenance and vandalism further add to LEC’s financial burden.
The LEC was also struggling with repaying a M650 million government loan taken during maintenance of the ‘Muela Hydropower Station, when they were forced to purchase electricity from Eskom. ‘Muela supplies LEC with 72 Megawatts at a cost of M0.12 per unit. The entire country needs M200 MW, thus, LEC imports the remainder from Eskom and Mozambique’s EDM.
“Government assisted us in March during a six-month maintenance period. Eskom required a M300 million deposit before supplying electricity. The remaining balance was scheduled for repayment starting November 2025, but current financial challenges have delayed payments. We are in discussions to start repayments next year,” Mr ‘Mokela said.
Despite these challenges, he remained optimistic about LEC’s future. Planned solar energy projects, including the proposed Oxbow Solar Plant expected by 2030, aim to reduce reliance on imported electricity. Partnerships with One Power and Build-Operate-Transfer (BOT) projects, including 20 MW of storage capacity, are also expected to ease financial pressures.
Mr ‘Mokela added that delayed audit reports will soon be resolved.
“We are submitting the 2023/2024 audit report to the Board next week. By February 2026, the 2024/2025 audit will be delivered for approval and then handed over to Minister (of Energy) Mohlomi Moleko. We aim to start April 2026 with a clean slate and no backlogs. All these we are realising through the direction and support of the new Board,” he said.
