SMART NEWS | MONROVIA, LIBERIA
The Liberia Electricity Corporation (LEC) is facing questions over the affordability of electricity access following a new tariff structure that reduces residential electricity prices but significantly increases the cost of connecting new households to the national grid.
The new tariff, approved by the Liberia Electricity Regulatory Commission (LERC) on December 12, 2025, and effective January 1, 2026, reduces the standard residential electricity rate from US$0.24 to US$0.22 per kilowatt-hour before applicable taxes.
Under the previous tariff, which remained in effect during former President George Weah’s administration, residential customers paid US$0.24 per kilowatt-hour, with prepaid customers also paying a monthly fixed charge of US$2.48.
Under the new arrangement, prepaid residential customers pay US$0.22 per kilowatt-hour, with a reduced monthly fixed charge of US$2.00.
The social electricity tariff has also declined from US$0.15 to US$0.13 per kilowatt-hour, providing some relief to low-consumption households.
According to LEC’s published tariff schedule, these reductions are expected to remain in effect through December 31, 2028.
NEW CONNECTION COST INCREASES BY 218 PERCENT
While existing residential customers are benefiting from lower electricity rates, the cost of obtaining a new single-phase connection has increased from US$22 to US$70, representing a 218 percent increase.
With the applicable 12 percent Goods and Services Tax, new customers now pay US$78.40 for a single-phase connection.
The increase raises questions about whether low-income households, particularly those in communities without donor or government-funded electricity expansion projects, can afford to connect to the national grid.
LERC has explained that customers in locations where grid expansion and connection costs are fully financed by government, donors or third parties will not be required to pay the connection fee.
Nevertheless, the regulator and LEC must explain the basis for the increase and how the new charge was calculated.
HOW MUCH DOES AN ORDINARY HOUSEHOLD SAVE?
A comparison of the two residential tariff schedules shows that a prepaid household consuming 100 kilowatt-hours monthly would pay approximately US$29.13 under the previous tariff, compared with US$26.84 under the new arrangement.
This represents an estimated monthly saving of US$2.29, assuming consumption remains unchanged.
Although the reduction provides some financial relief, the savings must be considered alongside the wider challenges of electricity affordability, access and reliability.
ELECTRICITY SUPPLY REMAINS A MAJOR CONCERN
Beyond the cost of electricity, the reliability of supply remains a major concern for consumers and businesses.
The International Monetary Fund’s 2026 assessment of Liberia identified high commercial and technical losses, weaknesses in LEC’s transmission and distribution networks, unpaid electricity bills and management inefficiencies as major challenges affecting the corporation’s financial sustainability and service reliability.
The IMF also noted that LEC’s financial difficulties undermine its ability to meet payment obligations and expand electricity services.
These findings raise important questions about whether the lower residential tariff will be accompanied by improvements in electricity generation, distribution infrastructure and service delivery.
A reduction in the price of electricity means little to households and businesses that continue to experience prolonged outages or lack access to the national grid.
QUESTIONS ABOUT LEC’S INVESTMENT AND FINANCIAL MANAGEMENT
Another important issue requiring public scrutiny is how LEC intends to finance infrastructure improvements while maintaining lower residential tariffs.
The IMF’s assessment also referenced a Government Accountability Commission audit of LEC that identified weaknesses involving compliance with laws and regulations, internal controls, financial reporting and transparency.
These findings make financial accountability particularly important.
LEC and LERC should publicly explain the corporation’s planned capital investments, the projects approved for implementation, the actual money spent and the improvements consumers should expect.
The authorities should also disclose the extent of electricity losses, outstanding public-sector electricity bills and the measures being taken to recover revenue owed to the corporation.
WHO APPROVED THE REDUCTION?
The new tariff was approved by LERC, the independent regulator established under Liberia’s 2015 Electricity Law.
The review process began in September 2024, with LEC submitting its initial tariff application in October of that year. Following management changes at LEC, the application was withdrawn, revised and resubmitted before the commission completed its review.
The final decision was issued on December 12, 2025, during President Joseph Boakai’s administration.
Therefore, while the reduction took effect under Boakai, the tariff decision was made through the statutory regulatory process rather than by a unilateral presidential order.
SMART NEWS SEEKS ANSWERS
SMART NEWS believes LEC and LERC owe the public clear answers to several important questions:
Why did the single-phase connection fee increase from US$22 to US$70?
How many new households are expected to benefit from the lower residential tariff?
What specific infrastructure projects will improve electricity supply and expand access?
How much is LEC losing through electricity theft, technical losses and unpaid government bills?
What is the implementation timetable for the corporation’s planned investments, and how will the public monitor their progress?
These are not merely technical questions. They concern the daily lives of Liberians who need affordable and reliable electricity to operate businesses, educate their children, preserve food and improve household living conditions.
The reduction in residential electricity prices is a documented development, but the increased connection fee and continuing operational challenges deserve equal attention.
For Liberians, the real measure of electricity-sector reform should not simply be cheaper power on paper, but affordable connections, dependable electricity and transparent management of public resources.
SMART NEWS WILL CONTINUE TO MONITOR LEC’S TARIFF POLICIES, INVESTMENT COMMITMENTS AND SERVICE DELIVERY IN THE INTEREST OF THE LIBERIAN PEOPLE.
