MONROVIA – Power shedding remains a major part of the Liberia Electricity Corporation’s plan in dealing with the power crisis rocking the nation since the start of last year dry season.
By Lennart Dodoo, [email protected]
In LEC’s recent performance report which encapsulates the its current status, challenges and future plans, the Corporation stated that as it struggles to meet the energy demand in the country, especially in the capital, it would continue to ration the electricity as part of its strategy to handle the high demand.
In addition to rationing the electricity, LEC also disclosed that it has decided to maximize the utilization of the of its heavy fuel oil (HFO) thermal plants. According to the Corporation, while there are major power generation projects underway, there are also talks being held to increase energy imports through the TRANSCO CLSG transmission lines to reduce the impact of the load shedding.
LEC is also encouraging independent power producers to invest in power generation projects in Liberia.
According to the Corporation, it continues to grapple with power theft – the number hindrance to its sustainability and expansion.
“With exponential demand growth, the electrical network is stressed, putting pressure on already constrained conditions. Customers demand more and better service quality. Yet the competing demands on LEC’s limited resources make it difficult to adequately address all issues concomitantly. LEC must simultaneously address the issues of electricity supply gaps, quality of service, customer connections, labor union demands, logistics, and power theft,” it stated in the performance report.
The foremost issue plaguing LEC is power theft, which continues to undermine the corporation’s financial stability despite recent strides. Commercial losses remain alarmingly high, posing a significant hurdle to LEC’s ability to purchase fuel for electricity generation and cover expenses for imported energy. According to the LEC in its report, addressing this problem necessitates not only the enforcement of existing anti-power theft laws but also widespread citizen support to safeguard the electric network against unauthorized tampering and illegal connections.
Secondly, LEC’s infrastructure is straining under the weight of expanding demand, nearing its maximum capacity. The Corporation noted that while upgrading transmission lines, substations, and transformers is imperative to enhance network performance, this endeavor demands substantial capital investment, primarily reliant on government funding. At the same time, neglecting such upgrades risks perpetuating inefficiencies and underperformance in the electrical grid, exacerbating the challenges faced by LEC.
The Gap Community Electrification project stands as a beacon of hope for underserved communities. Yet, significant barriers persist, with 37 Gap Communities, encompassing 33,768 households, still lacking access to the grid. Connecting these communities requires approximately US$12.6 million, a sum beyond LEC’s financial means without
The performance report underscored that the LEC has undergone a transformative period under new Liberian management, recording significant achievements and implementing innovative strategies to improve its performance.
Upon assuming operational control of LEC, the Liberian management addressed critical issues plaguing the corporation. Among their notable achievements, they successfully settled the $9 million debt owed to ECOBANK and cleared all outstanding salaries and benefits owed to employees. Moreover, they secured vital financing of $5.5 million through the World Bank LESSAP project for the repair of the damaged Mt. Coffee turbine, indicating a commitment to infrastructure improvement.
Additionally, the management’s swift action included the repair of all HFO thermal generators, ensuring their full availability and operation during the dry season. Financially, they reduced cross-border debt by $3.7 million, significantly decreasing the overall debt burden. Impressively, within just three months, they concluded negotiations for a Power Purchase Agreement with CI Energies/CIE and a Transmission Service Agreement with Transco CLSG, highlighting their efficiency in deal-making.
Industry Key Performance Indicators (KPIs) saw improvement under the Liberian management’s tenure. Aggregate technical and commercial losses dropped from 62.7% to 46.4%, with a notable reduction in commercial losses from 47.7% to 31.4%, marking a 34% decrease. Revenue soared from US$30.33 million to $54.67 million, representing an 80% increase, while the customer population nearly doubled from 142,947 to 282,505, showcasing a growth of 97.6%. Financial losses also saw a significant decline from -$20.9 million to -$12.9 million, marking a substantial 47.33% reduction.
Industry experts laud LEC’s performance under Liberian management as unmatched in the African region, particularly in commercial loss reduction, revenue performance, and customer connections. These achievements were driven by strategic initiatives implemented by the management team.
The Anti-Power Theft Task Force, established in November 2022, in collaboration with the Liberia National Police, has been instrumental in identifying and rectifying over fifty thousand unauthorized and illegal connections to the electric networks. The initiative, chaired jointly by the CEO and Mary T. Broh, successfully converted illegal connections to legal and paying customers, significantly reducing commercial losses.
Furthermore, the Agile Metering & Fault Resolution Program exemplifies the management’s commitment to prompt customer service. By mobilizing technicians and engineers on motorcycles within defined zones, the initiative ensures timely response to customer needs, ultimately reducing the time required to install meters or resolve complaints.
The management of LEC also outlined a comprehensive roadmap, setting forth key performance indicators guide its operations throughout 2024. Among the targets set by management are a reduction in commercial losses from 31.4% to 22.2%, an increase in revenue from $54.62 million to $82.81 million, a surge in customer connections from 282,505 to 366,669, and a decrease in financial losses from $12.9 million to $12.5 million.
These ambitious objectives come on the heels of strides made by LEC in 2022 and 2023, where the corporation underwent a transformative period
One of the key strategies adopted by LEC to achieve these targets is the signing of a framework meter supply contract with two manufacturers. Under this agreement, LEC is set to receive 300,000 meters over the course of three years. This move is poised to ensure a consistent supply of meters and streamline the process of connecting applicants to the network.
The significance of this initiative lies in its potential to combat commercial losses, a persistent challenge faced by LEC. Available data indicates that a considerable portion of illegal connections to the network stem from direct taps, highlighting the critical need for metering solutions.
Furthermore, LEC is doubling down on its efforts to combat power theft through the expansion and mainstreaming of the Anti-Power Theft initiative.
