The Liberia Electricity Regulatory Commission (LERC) has announced that it will embark on a tariff review for the Liberia Electricity Corporation (LEC) to set up new prices for customers connected to the grid.
According to Dr. Lawerence D. Sekajipo, LERC's Chairman, Board of Commissioners, the new tariff will be determined based on the cost, and efficiency of those costs, and incorporate emerging economic parameters.
"Therefore, the goal of the pending review, which is the same as the earlier review, is to ensure that the prices paid by the various customer categories reflect the just and prudent costs incurred by the Liberia Electricity Corporation in the provision of electricity to its customers," the Chairman said.
Dr. Sekajipo announced this at a press conference held at the Commission's headquarters in Congo Town, where he disclosed that the 2015 Electricity Law of Liberia mandates the commission to develop a set of tariffs for LEC every three years through elaborate principles, methodologies, processes, and other terms of supply of electricity within the electricity sector.
"The Commission's tariff regulation and multi-year tariff methodology require that tariffs approved by the Commission remain valid for three years. That means the approved tariffs currently paid by customers will expire on December 31, 2024."
According to him, the current LEC's tariff ranges from Social Customers - US$0.15 per kilowatt-hour (no fixed charge), Prepaid Residential Customers tariff US$0.24 per kilowatt-hour with a monthly fixed charge of US$2.48, and Postpaid Residential Customers tariff is set at US$0.24 per kilowatt-hour with a monthly fixed charge of US$4.47. These tariffs were set up and approved by the BoC in 2021.
Other tariffs include a prepaid non-residential customer tariff of US$0.22 per kilowatt-hour and a monthly fixed charge of US$10.00; a postpaid commercial customer tariff of US$0.22 per kilowatt-hour and a monthly fixed charge of US$12.00; and a voltage customer tariff of US$0.19 per kilowatt-hour and a monthly fixed charge of US$50.00.
"In December 2021, the BoC approved new rates and charges for five categories of customers within the LEC network, and the new rates and charges came into effect on January 1, 2022. This was the first time in the history of the electricity sector of Liberia that the cost of electricity was decided through a process that considered all the parameters in the generation, transmission, and distribution of electricity," Dr. Sekajipo said.
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"These tariffs and charges, duly approved by the Commission, have been paid by customers in the various categories since January 1, 2022. The Commission would like to re-emphasize that the fixed charges are intended to cover portions of LEC's fixed cost of operations and facilitate expansion of the network to unserved and underserved communities in LEC's operational areas."
"Fixed charges collected thus far by LEC have been used by LEC to extend electricity to 13 gap communities in Monrovia and reinforce the low voltage and medium voltage networks, including the installation of transformers, poles and streetlights. This has significantly contributed to the provision of electricity to gap communities, which are usually outside of areas covered by donor-funded electrification projects."
Meanwhile, the Commission has begun the Jungle Energy Power, Inc. (JEP) tariff determination process for its distribution areas in Nimba and Bong Counties.
According to the Commission, the goal of this process is to ensure that the prices charged by JEP Inc. to customers connected to its distribution network in Nimba and Bong counties are cost-reflective and to ensure continuous improvements to the network to ensure a stable supply of electricity.
"JEP Inc. is following the Commission in providing the information we have requested. The Commission will provide updates to the public when that process is complete, and a new tariff is decided and approved by the Commission."
