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Determination of the lifeline electricity tariff for Lesotho

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Lesotho has a poverty rate above 50%, this renders a bulk of households connected to the grid unable to purchase
enough energy to cover the essential basic needs at the current tariffs. This is supported by the declining average
household consumption reported by Lesotho Electricity Company (LEC) despite an increasing customer base.
Even more crucial, for low income countries, tariff levels should balance social stability, affordability, fairness,
energy efficiency as well as cost recovery especially because the poor make up the majority of the population.
Based on the poverty line, a lifeline tariff of 0.5 to 0.6 Maloti(M)/kWh (2017 tariffs) for a threshold of up to 30
kWh/month is proposed which is 35%–42% lower than the current domestic tariff of 1.424 M/kWh. The standard domestic tariff will need to increase to 1.856 M/kWh to allow for cross-subsidisation and hence maintain
the financial standing of the utility company. The threshold capacity is based on the observation that in 2016,
around 30% of grid connected households consumed less than 30 kWh/month which is enough electricity to
cover the basic needs of an average household. Hence, an increasing block tariff (IBT) approach is proposed such
that the first 30 kWh/month are set at a lifeline tariff and any excess is charged at a standard rate which is set
such that it cross-subsidises the lifeline tariff.

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Ketersediaan

EJ20287

My Library

Tersedia

Informasi Detil

Judul Seri

-

No. Panggil

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Penerbit

Elsevier Ltd. : ., 2020

Deskripsi Fisik

10 p.

Bahasa

English

ISBN/ISSN

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Klasifikasi

NONE

Tipe Isi

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Tipe Media

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Tipe Pembawa

online resource

Edisi

Energy Policy 140 (2020) 111381

Subyek

-

Info Detil Spesifik

Ejurnal

Pernyataan Tanggungjawab

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Versi lain/terkait

Lampiran Berkas

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