-- As LERC issues Tariff Directives to LEC, LIBENERGY
The Liberia Electricity Regulatory Commission (LERC) has issued separate directives to the Liberia Electricity Corporation (LEC) and LIBENERGY Liberia to submit proposed tariff applications for the various customer categories in their respective licensed areas no later than Friday, 4th October 2024.
"The directives are pursuant to Section 8.1(2) of the 2015 Electricity Law of Liberia (2015 ELL) and regulation 18(1) of Electricity Tariff Regulations of 2021," the LERC said in a release, "which mandate the Commission to approve and set electricity tariffs for licensed operators within the Electricity Supply Market of Liberia."
The proposed tariffs, when approved by the Commission, will be implemented during the tariff period beginning January 1, 2025, and ending on December 31, 2027, but shall be subject to adjustments as mentioned in the Multi Year Tariff Methodology of 2021.
As part of the tariff review process, the Commission informs the public that it will hold a series of public hearings, stakeholder engagements, outreaches, conduct talk shows with electricity customers, consumers, policy makers, interest groups, civil society organizations and among others to solicit inputs and recommendations in making the final decisions.
In 2021, the Commission approved tariffs for five categories of customers within the Liberia Electricity Corporation's (LEC) network. The tariffs took effect on 1st January 2022 and will end on 31st December 2024. The five categories of customer tariffs, announced by the Commission in 2021, included Social Customers, Prepaid Residential customers, Postpaid Residential customers, Prepaid Non-residential Customers, Postpaid Commercial customers and Medium Voltage customers. Currently, LEC's operations cover Montserrado, Grand Cape Mount, Bomi and Margibi counties.
In 2023, the Commission approved a provisional tariff for LIBENERGY, a large Micro Utility Distribution licensee operating in distribution service areas in Grand Gedeh, River Gee, Maryland and parts of Nimba Counties. Tariffs approved following this review process will replace the provisional tariff that the company currently charges its customers in its operation areas.
In a related development, the Commission informs the public that it has issued a notice of complete application to Jungle Energy Power (JEP) on its tariff application to the Commission for its licensed distribution service areas in Bong and Nimba counties. In its application, JEP proposes a tariff of 21.5 cents per kilowatt-hour (kWh) for Large Customers and 25 cents per kWh for all other customers in its operation areas. The Commission has published an abridged application of JEP, and a notice of pendency as required by the Electricity Tariff Regulations of 2021 to facilitate public engagements during the tariff review process. The new tariffs, when approved, will be implemented during the tariff period beginning January 1, 2025, and ending on December 31, 2027.
Meanwhile, the Commission urges the management teams of LEC, LIBENERGY and JEP to adhere to the tariff schedules and timetables issued by the Commission, noting that failure to do so will lead to significant regulatory penalties under the law to include fines.
LEC assures Liberians of improved access, affordability
Details regarding the pending updated tariffs coincide with LEC's commitment to providing a more reliable electricity supply to Liberians, particularly during the essential dry seasons. This assurance was made during a panel session at the official unveiling of the World Bank's 2024 Liberia Economic Update (LEU).
The panel discussion, aligned with the report theme "Powering Growth with Reliable, Affordable, and Sustainable Energy Access", focused on addressing the hurdles and progress in Liberia's energy sector. It emphasized the critical contribution of consistent energy supply in driving the country's economic development and enhancing the well-being of its population. As Liberia targets middle-income status by 2030, ensuring dependable and cost-effective energy accessibility is a crucial aspect of the overall strategy.
During the discussion, LEC's Chief Operating Officer (COO), Kwame Kpekpena, outlined several steps that LEC has taken in recent years to enhance electricity provision and affordability for Liberia's population. One of the most significant achievements has been the reduction of electricity prices from 53 cents per kilowatt hour to 22 cents, as well as a notable decrease in commercial losses from 51% to 31% in just one year. He also noted that outage hours had decreased from 433 hours last year to less than 100 hours, largely due to LEC's connection to the Côte d'Ivoire-Liberia-Sierra Leone-Guinea (CLSG) interconnection project.
"For years, LEC's commercial losses were 51 percent. Last year, at the end of the year, it came to 31 percent. We have seen electricity prices drop. We've dropped from 53 cents per kilowatt hour to 22 now, per kilowatt hour since 2022," Kpekpena said during the panel discussion. "Outage hours dropped significantly, partly because we connected to the CLSG."
Despite these improvements, Kpekpena acknowledged that much work remains. Power generation capacity must be expanded to meet growing demand, and more effective strategies are needed to combat power theft, a longstanding issue that continues to hurt LEC's financial stability. In some cases, metered customers have found ways to bypass the meters, exacerbating the corporation's revenue challenges.
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High hopes for the dry season
As Liberia faces significant dry-season electricity shortages each year, Kpekpena shared hopeful news during the discussion. He revealed that the Republic of Ghana is prepared to supply 50 megawatts of electricity to Liberia, but the energy would need to be transmitted through Côte d'Ivoire.
Kpekpena emphasized that permission from Côte d'Ivoire is necessary for this deal to move forward, but once secured, it could significantly enhance LEC's ability to provide stable electricity during the dry months.
"This is part of LEC's broader strategy to ensure that Liberia has sufficient electricity provision not only during the rainy season but also during the dry season," he stated.
This potential deal with Ghana represents a step toward addressing one of the most pressing challenges outlined in the Liberia Economic Update: the need to boost generation capacity, particularly during the dry season, when hydroelectric power output is lower due to reduced water levels at the Mt. Coffee hydropower plant, the country's largest energy provider.
