{"id":4812,"date":"2021-10-20T12:05:37","date_gmt":"2021-10-20T12:05:37","guid":{"rendered":"https:\/\/www.africa-press.net\/lesotho\/all-news\/lec-on-its-knees-seleke"},"modified":"2021-10-20T12:27:49","modified_gmt":"2021-10-20T12:27:49","slug":"lec-on-its-knees-seleke","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/lesotho\/all-news\/lec-on-its-knees-seleke","title":{"rendered":"\u2018LEC on its knees\u2019 \u2013 Seleke"},"content":{"rendered":"

Africa-Press<\/a> – Lesotho<\/a>. <\/strong><\/span>Lesotho Electricity Company (LEC) is heavily owned by its clients. This the LEC Managing Director (MD) Mohato Seleke revealed at a press conference on Wednesday.<\/p>\n

The MD said that the utility is owed long time debts to the tune of M265 million. This monies owned to the company he said they threaten the smooth running of the operations of<\/p>\n

the company adding that they are avoiding the crisis of effecting load shedding as it happens in the neighbouring South Africa (SA) where they import additional electricity from.<\/p>\n

Seleke said when he assumed the directorship, LEC was \u201con its knees\u201d adding that \u201cwhen LEC fails the entire economy fails\u201d. \u201cWhen LEC is healthy the economy will be healthy,\u201d he said.<\/p>\n

He mentioned that the electricity imported to supplement LEC is very expensive. LEC buys electricity from \u2018Muela Hydro power station which produces 72 megawatts, then imports<\/p>\n

supplementary power from South Africa\u2019s Eskom and Mozambique\u2019s Electricidade de Mocambique (EDM). LEC spends about M360 million to procure electricity from Eskom and M120 million from Electricidade<\/p>\n

de Mocambique. Seleke said M90 million is owed by the sundry debtors that is the prepaid customers who are small scale clients while M175 million is owned by the post-paid customers who<\/p>\n

include government\u2019s ministries, industrialists, embassies, mines and private companies. Earlier in February the utility embarked on a debt collection exercise, a move which the MD said<\/p>\n

had borne positive results. Through this exercise he said the utility was able to recover M21 million from the government ministries and M95.6 million from<\/p>\n

post-paid clients. Despite the government of Lesotho boasting 100 percent shareholding in LEC, Seleke said the utility is \u201ca profit making institution with a development mandate\u201d adding that the<\/p>\n

company achieves this in line with the sound financial principles. The MD appealed for an \u201cearnest\u201d effort from the debtors to settle their outstanding fees.<\/p>\n

He said the company does not get subsidies from the government. He mentioned that they faced a \u201cconundrum\u201d where they had to disconnect the electricity but could not<\/p>\n

as they had to show \u201cleniency\u201d citing the hospitals which use electricity for critical purposes of preserving lives and the factories which are critical for<\/p>\n

the economic growth despite having high utility debts. The MD also stated that going forward they will \u201cstrengthen\u201d internal control systems which will ensure<\/p>\n

compliance of payments by their clients. Seleke further decried the illegal connections and vandalism which he said they offset the utility. He said during the last financial year, the company spent in excess of M21 million<\/p>\n

that was directed at addressing vandalism. Meanwhile, the MD said they will soon lodge their application for the tariffs review with the regulator, the Lesotho Electricity and Water Authority (LEWA) intimating that they are going to apply for the increase.<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Lesotho. Lesotho Electricity Company (LEC) is heavily owned by its clients. This the LEC Managing Director (MD) Mohato Seleke revealed at a press conference on Wednesday. The MD said that the utility is owed long time debts to the tune of M265 million. This monies owned to the company he said they threaten […]<\/p>\n","protected":false},"author":84,"featured_media":4811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[233,246,129,245],"class_list":["post-4812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-lesotho","tag-electricity","tag-lesotho"],"yoast_head":"\n\u2018LEC on its knees\u2019 \u2013 Seleke - Lesotho<\/title>\n<meta name=\"description\" content=\"Lesotho Electricity Company (LEC) is heavily owned by its clients. 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