Liberia: Electricity Tariffs Dropped By 12 Percent in Bong and Nimba Counties

6 January 2025
The New Dawn (Monrovia)

The Liberia Electricity Regulatory Commission (LERC) has approved a 12% reduction in electricity tariffs for the Bong and Nimba counties grid, operated by Jungle Energy Power (JEP).

Monrovia, January 6, 2024/ The new tariffs, which will take effect on January 31, 2025, were announced by the Chairman of the Board of Commissioners, Claude J. Katta, during a ceremony held in Gompa City, Nimba County, on Monday, December 30, 2024.

The revised tariff structure has reduced the energy charge from US$0.25 per kilowatt-hour (kWh) to US$0.22 per kWh, benefiting electricity consumers in both counties. In addition, a new monthly fixed charge of US$1.25 has been introduced to fund network improvements and ensure a higher quality of service. The commission is expected to sign an MoU with JEP outlining how the fixed charge is expected to serve consumers' interest in JEP's operational areas.

JEP has also seen a significant reduction in the connection charge, lowered from US$100 to US$40 for new customers wanting to connect to the grid. This change is aimed at making electricity more accessible to residents by covering the cost of materials for connections while the remaining costs will be recouped through the revised energy tariff.

Chairman Katta emphasized that the decision was made after a thorough technical analysis in line with the 2015 Electricity Law of Liberia, which mandates the LERC to regulate and set tariffs for the electricity sector. He assured that the new tariffs strike a balance between enabling JEP to recover its operational costs, incentivizing system improvements, and providing affordable electricity to consumers.

The newly approved tariffs will come into force from "January 31, 2025, to January 30, 2028", replacing the provisional tariffs set for Nimba County in 2021 and Bong County in 2023. Mr. Tomah Seh Floyd, CEO of Jungle Group of Companies, the parent company of JEP, welcomed the decision and affirmed that JEP, as a law-abiding entity, would comply with the new tariff structure. He acknowledged the sector's challenges, such as the need for consistent revenue and insufficient information, but stressed the importance of improving local electricity generation.

"We are exploring ways to generate our own electricity, which will allow us to be more efficient and reduce the price of electricity," Tomah said. "Serving our people remains our biggest achievement", he asserted.

Madama Meapeh Kou Gono, Superintendent of Nimba County, expressed her satisfaction with the tariff reduction. She praised the LERC for the decision, noting that it would allow consumers to save money without compromising the county's economic productivity, particularly given Nimba's role as the second-largest economy in Liberia.

She also commended JEP for its contributions to the development of the county and hoped that the tariff adjustments would not lead to scarcity of electricity, a concern among local stakeholders.

The announcement was well-received by various stakeholders, including local government officials, civil society organizations, and community representatives from Bong and Nimba counties. With the new tariffs set to take effect next year, LERC aims to ensure affordable, efficient, and sustainable electricity services in the region while supporting the long-term viability of the electricity sector.

This tariff reduction is seen as a significant step towards improving the financial sustainability of JEP and making electricity more accessible to Liberian households and businesses in Bong and Nimba counties.

In a related move, the LERC issued a directive requiring JEP to submit a comprehensive report on the collection of legacy debts on behalf of LEC. The legacy debts are debts incurred by customers prior to LEC turning over the Bong and Nimba operational areas to JEP. The commission requires the management of JEP to provide a detailed report outlining the amount of the debt collected so far and remitted to the Liberia Electricity Corporation (LEC), and outstanding balances by January 15, 2025. The Commission warned that failure to comply with this directive could result in regulatory action, including penalties, further investigations, or other measures. -Press release

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