LERC To Review Electricity Tariff, Formulate New Price For Customers

By Rancy S.Teewia

MONROVIA, June 20 (LINA) – The Liberia Electricity Regulatory Commission (LERC) has disclosed plans to review tariffs for customers of the Liberia Electricity Corporation and approve new price levels.

Making the disclosure on Wednesday June 19, 2024, at the commission headquarters in Monrovia, LERC Commissioner General, Lawerence D. Sekajibo avowed that the exercise will review all the cost drivers, assess the efficiency of those costs and incorporate emerging economic parameters in determining the tariff.

He stressed that the goal of the pending 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 LERC Boss further stressed that in keeping with the Act that established the LERC, the Board of Commissions in December 2021, approved new rates which applied to five categories of customers within three years which came into effect on January 1, 2022.

"This was the first time in the history of Liberia for the cost of electricity to be decided through a process that considered all the parameters in the generation, transmission and distribution of electricity,” the LERC boss said.

He narrated that the five categories of customers include, Social Customers, Prepaid Residential, Postpaid Residential, Prepaid Non-residential Customers, Postpaid Commercial and Medium Voltage customers.

Dr. Sekajipo explained that as it stands, Social Customers are paying US$0.15 per Kilowatt-hour (no fixed charge) while Prepaid Residential Customers tariff is set at US$0.24 per Kilowatt-hour with a monthly fixed charge of $2.48.

Also, he indicated that the Postpaid Residential Customers tariff is set at US$0.24 per Kilowatt-hour and monthly fixed charge of $4.47.

"Prepaid Non-residential Customers tariff is set at US$0.22 per Kilowatt-hour and monthly fixed charge of US$10.00. Postpaid Commercial Customers tariff is set at US$0.22 per Kilowatt-hour and monthly fixed charge of US$12.00. Medium Voltage Customers tariff is set at US$0.19 per Kilowatt-hour and monthly fixed charge of US$50.00." the LERC boss explained.

He maintained that the above-mentioned tariffs and charges were duly approved by the Commission, stressing that such amounts have been paid by customers in the various categories since January 1, 2022.

Meanwhile, the LERC official re-emphasized 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.

He asserted that 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," Dr. Sekajipo noted.