LEC strikes deal with EDM

LEC strikes deal with EDM

MASERU – THE Lesotho Electricity Company (LEC) has struck a mega deal to buy electricity from Electricidade de Mocambique (EDM).
In a statement this week, the LEC said the deal was signed by the company’s acting Managing Director Tankiso Motšoikha and the EDM Managing Director and Chairperson of the Board Mateus Magala.

The deal was signed in Maputo, Mozambique on February 2.
Under the terms of the deal, the LEC will on average buy electricity at the rate of M0.89 cents per unit, as opposed to the previous cost of M1.42 cents in the previous contract.

The LEC said the negotiated price is also below the rate that the company buys electricity from Eskom in South Africa, which sells at M0.98 cents per unit.

This is the lowest rate at which EDM has ever sold electricity to the LEC since the bilateral agreement was initiated in 2008.
At this new rate therefore, LEC says it will continue to buy electricity from EDM until December 2018, when the contract will be reviewed and re-negotiated between the two parties.

The LEC buys electricity from the Lesotho Highlands Development Authority via its ‘Muela Hydro-power station, Eskom in South Africa and EDM in Mozambique through the 132kV and 88kV networks.

In Qacha’s Nek, the LEC buys electricity from Eskom through a 22kV line from Matatiele in South Africa.
Qacha’s Nek is the only district that is not yet connected to the main national grid.

Staff Reporter

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