Lesotho Electricity Prices to Go Up Slowly to Improve Service – LEWA
27 August 2026 by Limpho Sello
Lesotho electricity prices are set to increase gradually over three years as part of proposed reforms aimed at improving the quality and sustainability of electricity services.
This is according to a press statement issued by the Lesotho Electricity and Water Authority (LEWA) on 27 August 2026, following a two-day meeting convened by LEWA in collaboration with the African Development Bank (AfDB) on 26–27 August.
The workshop focused on reviewing findings from the Cost-of-Service Study (CoSS), which is intended to help reshape the country’s electricity tariffs into a fairer and more sustainable system.
The study projects that the number of Lesotho Electricity Company (LEC) customers will increase from approximately 320,575 in 2025 to nearly 391,544 by 2030. This represents an increase of about 71,000 customers, or nearly 22 percent.
The growth will require continued investment in electricity infrastructure and networks to maintain and improve service quality. However, the study also found that current tariffs do not fully cover the cost of supplying electricity.
“For 2026/27, existing tariffs are expected to recover about M74.00, or approximately US$4.48, for every M100.00 (approximately US$6.06) required to provide the service.
“While full cost recovery would require an estimated 35.6 percent average tariff increase, the recommendations propose a more gradual approach: an average 12.8 percent annual increase over three years, designed to reduce the immediate impact on consumers,” the statement read.
The proposed reform would also modernise the tariff structure by introducing time-based tariffs for selected commercial and industrial customers, as well as block tariffs for households.
The statement quoted Deputy Permanent Secretary in the Ministry of Energy and Mining, Seboka Thamae, as stressing the need for cost-reflective pricing.
“A sustainable electricity sector requires tariffs that reflect the cost of reliable service while protecting consumers,” Thamae noted.
He welcomed the AfDB’s support and data-driven insights, saying they would help strengthen the efficiency, reliability and financial health of Lesotho’s power sector.
AfDB Chief Energy Regulatory Expert Rhoda Mshana said the reform must balance the financial sustainability of the electricity sector with consumer protection.
“This reform must strike a balance between the financial sustainability of the electricity sector and consumer protection,” Mshana stated, reaffirming the bank’s commitment to helping deliver accessible and dependable electricity to the people and businesses of Lesotho.
As the workshop concluded, participants agreed that continued public consultation will be vital to ensuring that consumer concerns shape the final regulatory decisions.
Supported by the AfDB’s Africa Energy Sector Technical Assistance Program (AESTAP), the evidence-based reform also aligns with Mission 300, a broader AfDB–World Bank initiative seeking to bring electricity to 300 million more Africans by 2030.
