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Saturday, February 22, 2025

LERC EVALUATES JEP’S REQUEST FOR TARIFF RECONSIDERATION

Date:

The Liberia Electricity Regulatory Commission (LERC) is currently reviewing a notice filed by Jungle Energy Power (JEP) requesting reconsideration of the recently announced electricity tariff.

This comes after public hearings were held in Nimba and Bong counties on February 18 and 19, 2025, where stakeholders, local government authorities, businesses, and citizens voiced their opinions.

In its reconsideration request, JEP’s General Manager, Aleyou Keita, informed the Commission that since January 2025, the price for electricity from CIE (Compagnie Ivoirienne d’Electricité) has increased from $0.15 to $0.16 per kilowatt-hour (kWh). As a result, Keita is proposing that the tariff for consumers be adjusted from $0.22 to $0.24 per kWh. He also recommends eliminating the Liberia Electricity Corporation’s (LEC) 0.1 cent administrative charge, arguing that this move would allow for more efficient distribution of power within its coverage areas.

Furthermore, Keita has suggested that the government of Liberia or LEC subsidize the purchase price from CIE to $0.12 per kWh, maintaining the tariff at $0.23 with a fixed charge of $2.00.

LERC’s Chairman, Hon. Claude J. Katta, explained the purpose of the public hearings pinpointing that when a new tariff is announced and service providers believe certain factors were not considered, they have the right to request a reconsideration. The Commission then places a hold on the new tariff and holds public hearings to ensure transparency and allow for public participation in accordance with good regulatory practices.

Chairman Katta along with Commissioners Kla-Edward Toomey, II and Amara M. Kamara, and Managing Director Augustus V. Goanue chaired the hearings that brought together local government authorities, stakeholders, JEP, businesses, civil society organizations, interest groups and the public from Nimba and Bong counties. The public hearings were well attended, with over 100 participants in each session.

The Deputy Minister for Energy, Charles Umehai, praised LERC for facilitating the hearings, emphasizing the Ministry’s commitment to ensuring collaboration between the Commission and licensed operators to meet the needs of both JEP and its customers.

In December 2024, LERC had previously announced a reduction in the energy charge from $0.25 to $0.22 per kWh, alongside a new monthly fixed charge of $1.25. The Commission also announced a significant reduction in the connection charge, which has been 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.

LERC is expected to make its decision on JEP’s notification for reconsideration in March 2025, with the new rates set to take effect from March 2025 to February 2029.

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