Can Lesotho Fix Its Power Revenue Gap Without Pricing Vulnerable Households Out of Electricity?

Representative Image. Country: Lesotho SHARE Key Takeaways AI Summary Analyzing article... Lesotho's proposed electricity tariff reform has brought a difficult national policy choice into focus: how to finance a more reliable and expanding power system without making electricity unaffordable for households and businesses. Findings from a Cost-of-Service Study suggest that current tariffs are no longer sufficient to cover the cost of supplying electricity, creating financial pressure that could affect maintenance, new connections and service quality.

The Lesotho Electricity and Water Authority and the African Development Bank convened government representatives, energy institutions, consumer groups, academics and technical experts in Maseru on 26 - 27 August 2026 to discuss the findings. The recommendations remain proposals rather than an approved tariff decision, making the consultation process important for determining how costs and protections will ultimately be distributed.