The Liberia Electricity Regulatory Commission (LERC) has enacted a significant tariff reduction for electricity consumers in Bong and Nimba counties, signaling a positive shift towards more affordable and accessible power. Effective January 31, 2025, the energy charge will decrease by 12%, from US$0.25 to US$0.22 per kilowatt-hour (kWh). This reduction, achieved through a thorough technical analysis in accordance with Liberia’s 2015 Electricity Law, aims to balance the financial viability of Jungle Energy Power (JEP), the operator of the counties’ grid, with the needs of the consumer base. Furthermore, a new monthly fixed charge of US$1.25 will be implemented to finance network upgrades and ensure enhanced service quality. A forthcoming Memorandum of Understanding (MoU) between LERC and JEP will detail how this fixed charge will directly benefit consumers. This comprehensive tariff restructuring reflects the LERC’s commitment to fostering a sustainable and consumer-centric electricity sector.
The reduced tariffs also extend to new connections, with the connection fee slashed from US$100 to US$40. This dramatic reduction aims to broaden access to electricity by covering the material costs of new connections, while the remaining costs are recouped through the slightly adjusted energy tariff. This initiative demonstrates a concerted effort to extend electricity services to more households and businesses, promoting economic growth and improving living standards in these counties. The combination of lowered energy charges and connection fees presents a significant opportunity for wider electricity adoption, ultimately driving development within these regions.
The approved tariffs will remain in effect from January 31, 2025, to January 30, 2028, superseding the provisional tariffs previously established for Nimba in 2021 and Bong in 2023. This three-year timeframe provides stability and predictability for both JEP and consumers, allowing for long-term planning and investment in the electricity sector. It also indicates a commitment from the LERC to consistently review and adjust tariffs to ensure they remain fair and reflective of the operational costs and market conditions.
JEP, a subsidiary of the Jungle Group of Companies, has expressed its commitment to adhering to the new tariff structure. Recognizing the inherent challenges within the sector, including revenue consistency and information gaps, JEP emphasizes its dedication to enhancing local electricity generation. Exploring avenues for self-generated power, they aim to achieve greater efficiency and further reduce electricity costs, ultimately benefiting consumers and contributing to the overall development of the region. This proactive approach underscores JEP’s commitment to not only complying with regulations but also actively seeking innovative solutions to improve service delivery.
Local stakeholders have welcomed the tariff reduction with enthusiasm. Superintendent Meapeh Kou Gono of Nimba County lauded the LERC’s decision, highlighting its positive impact on consumers’ finances without jeopardizing the county’s economic output, particularly considering Nimba’s status as Liberia’s second-largest economy. This emphasizes the importance of affordable electricity for both household wellbeing and broader economic prosperity. While expressing gratitude for JEP’s contributions to the county’s development, Gono also voiced hopes that the tariff adjustments will not negatively impact electricity availability, a significant concern shared by local communities.
This announcement resonates positively with a broad spectrum of stakeholders, including local authorities, civil society groups, and community representatives from both Bong and Nimba counties. The reduced tariffs signify a substantial advancement towards more accessible, efficient, and sustainable electricity services, while simultaneously bolstering the long-term viability of the electricity sector. The move is widely perceived as a crucial measure to enhancing JEP’s financial sustainability and expanding access to electricity for Liberian households and businesses in the two counties. Beyond the immediate economic benefits, this initiative promises to improve the quality of life for residents and foster sustainable economic growth within these communities.
Furthermore, LERC has mandated JEP to submit a comprehensive report on the collection of legacy debts owed to the Liberia Electricity Corporation (LEC) before the transfer of operational control to JEP. This directive requires JEP to provide a detailed account of collected and remitted debts, along with outstanding balances, by January 15, 2025. This action underscores LERC’s commitment to transparency and accountability within the electricity sector, ensuring that outstanding debts are addressed and that proper financial procedures are followed. Non-compliance with this directive could lead to regulatory action, including penalties, further investigations, or other appropriate measures, reinforcing the seriousness of this requirement.
