MONROVIA – The Liberia Electricity Regulatory Commission (LERC) will today Friday, 12 November hold a public hearing on the Liberia Electricity Corporation (LEC) tariff application at the Kailondo Hotel located on the Old Road beginning at 10:00 a.m. The approved tariffs are expected to take effect beginning 1 January 2022.
The Management of the LEC will make a presentation to defend its tariff proposal before members of the Board of Commissioners of LERC. In a letter to the management of LEC and signed by the Commission’s Managing Director Augustus V. Goanue, it was stated that the Corporation has met requirements as set by the Commission and as such a decision will be reached by the Board of Commissioners of LERC on the Corporation’s request in keeping with the procedures as outlined in the various regulations and the 2015 Electricity Law of Liberia (ELL).
LEC’s application for Tariff Review was submitted to the Commission between 28 June and 20 October 2021, in adherence to Section 13.7 of the 2015 ELL, the Electricity Tariff Regulations of May 4, 2021 and LERC’s Administrative Procedure Regulations of September, 2020.
Recently, LERC issued a Public Notice of Pendency of Application for the Review of Electricity Tariffs and is urging all parties, individuals, Governmental or other legal entities that wish to be formally recognized as parties at the hearing to file a written notification with the Commission to that effect.
Prior to acknowledging receipt of the application, the Commission in the past held various working sessions and drilled the management of LEC through the 2021 approved Electricity Tariff Regulations and the Multi Year Tariff Methodology.
The new Electricity Tariff Regulations and the Multi Year Tariff Methodology provides the framework for electricity operators across the country including the national grid, LEC, on how to derive tariffs for electricity consumers in Liberia.
LERC’s Board of Commissioners (BoC) Chaired by Dr. Lawrence D. Sekajipo approved the “Electricity Tariff Regulations and the Multi Year Tariff Methodology” in May this year. The BoC’s decision to approve the Regulation and Methodology was based on the 2015 ELL which mandates the Commission to amongst other things “regulate tariffs” in Liberia.
In March 2021, LERC provisionally approved a request from LEC to implement an “Incentive Framework” for large electricity consumers using high security pre-paid meters. The proposed incentive level provides a 22% discount for large customers using the high security prepaid meters which equates to around US$0.27/KWh.
The decision to approve the LEC’s incentive scheme at the time was intended for LEC to attract potential large consumers to connect to its grid and to retain all large consumers as customers of the Corporation.
It can be recalled, the Commission recently issued six licenses generation (hydro and thermal), transmission, import, distribution and transmission system operator to the Liberia Electricity Corporation to operate within the electricity industry.
The Liberia Electricity Regulatory Commission (LERC) is an autonomous independent entity established by Chapter 13 of the 2015 Electricity Law of Liberia (ELL). Its core responsibilities are to oversee and regulate the electricity sector of Liberia. Please visit www.lerc.gov.lr to read more about the Commission.