The Lesotho ELectricity and Water Authority (LEWA) is Lesotho’s economic regulator for electricity and urban water services. It licenses utilities and suppliers, approves tariffs, sets quality of service and technical standards, and adjudicates certain disputes.
For IPP and infrastructure investors, LEWA provides the regulatory approvals that underpin bankable power purchase agreements and ensures predictable tariff‑setting for both electricity and water.
Regulatory Framework – Scope and Coverage
LEWA’s scope includes:
- Licensing (generation, transmission, distribution, supply) for electricity;
- Tariff methodologies and determinations;
- Water/wastewater tariff regulation for urban utilities;
- Customer service standards and performance reporting; and
- Technical codes and compliance monitoring.
Regulatory Map: Who Does What
| Area | Primary Authority / Instrument | What it Means for Investors |
|---|---|---|
| Electricity licensing | LEWA under electricity regulation | Authorisations for IPPs and system operators. |
| Tariff setting | LEWA methodologies and determinations | Transparent tariff processes improve bankability. |
| Urban water regulation | LEWA oversight of WASCO | Tariff/service quality oversight for water utilities. |
| Consumer protection | LEWA codes and standards | Service quality, complaint handling and dispute processes. |
Investor‑Facing Processes
| Process | Steps | Outcome |
|---|---|---|
| IPP approvals | Engage ministry/utility → submit licence application to LEWA → public/technical review | Licence and tariff approach enabling PPA closure |
| Tariff petitions | Submit revenue requirement and performance data → hearings → determination | Approved tariff or decision with conditions |
| Water project interfaces | Coordinate with WASCO/Ministry → LEWA review for tariff impacts | Clarity on cost recovery and service standards |