Authorities at the Liberia Electricity Regulatory Commission (LERC) have announced what they term as massive reductions in electricity tariffs, beginning January 1, 2022.
LERC Board Chairman Dr. Lawrence Sekajipo said the decision to announce the reduction is the result of rigorous technical analyses of Liberia Electricity Corporation cost and other parameters, thereby ensuring that only prudent costs are passed onto customers as end-users.
Dr. Sekajipo made the announcement here at the commission head office in Oldest Congo Town over the weekend in a brief program with key partners in the energy sector.
“As far as tariffs are concerned, our responsibility under the 2015 Electricity Law is to set tariffs that enable an efficient service provider to recover its cost, make a reasonable return, and provide incentives for continuous technical and economic improvements in the system,” he explained.
Going forward, Dr. Sekajipo, said the new tariff will enable social customers, whose monthly energy consumption is either less than or equal to 50kWh shall pay US$0.15, which represents a 32% reduction from the current price of US$0.22.
By this decision, he said, the Board of Commissioners has increased the threshold of social tariff from 20kWh to 50kWh which will allow more people to benefit from this category.
He also revealed that prepaid residential customers will also pay US$0.24 per kilowatt-hour, which represents a 31% reduction from the current price of US$0.35 cents and attracts a monthly fixed charge of US$2.48 to cover a portion of LEC’s fixed costs.
Tariff for postpaid residential customers – is set at US$0.24 cents per kilowatt, which also represents a 31% reduction from the current price of US$0.35 cents per kilowatt-hour and attracts a monthly fixed charge of US$4.47 to cover a portion of LEC’s fixed costs.
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For prepaid non-residential customers, according to the LERC Board chairman, they are to pay US$0.22 cents per kilowatt-hour, which also represents a 37% reduction from the current price of US$0.35 cents.
He further said that postpaid commercial customers– are set at US$0.22 cents per kilowatt-hour, which represents a 37% reduction from the current price of US$0.35 cents and attracts a monthly fixed charge of US$12 to also cover a portion of LEC’s fixed cost.
However, for medium voltage customers, Dr. Sekajipo said the price is set at US$0.19 per kilowatt-hour. This tariff category, he said, consists of customers supplied at the 22kV and 33kV voltage levels, which represents a 46% reduction from the current price of US$0.35 per kilowatt-hour.
Dr. Sekajipo continued that this category shall also pay a monthly fixed charge of $50 to cover a portion of LEC’s fixed cost.
“It is the Commission’s expectation that this exercise and other ongoing initiatives would spur LEC to increase customer’s connections and improve reliability and that the new prices would encourage good customer behavior, thereby ensuring the sustainability of the electricity supply service,” he added.
He said the cut would provide relief to domestic consumers, especially the poor, already reeling under financial problems due to the pandemic. The law “mandates the LERC to, among other things, approve and set new electricity tariffs for companies operating within the electricity supply market of Liberia.”
According to Dr. Sekajipo, this is the first time that a tariff structure has been set based on the cost of transmission, generation and distribution of electricity, adding that “previous tariffs were all political”.
Also making remarks, the Chairman of the board at the Liberia Electricity Corporation or LEC Mr. Monie R. Captan, extolled the LERC for the bold decision taken, which he said will help ease up the tension of electricity users.
“Today many Liberians feels the sign of relief to see tariff has dropped substantially over 39% is significant.
I think this will help LEC to address the argument that people have about electricity being too expensive with an excuse to steal current”, Mr. Captan added.
He said tariff could even go lower, but it couldn’t because of power theft, saying “when you steal current, you don’t get it free, all you do is to make someone else’s to pay for the current that you steal”.https://thenewdawnliberia.com/lerc-approves-new-tariff-regulation/
