The Liberia Electricity Regulatory Commission (LERC) Board of Commissioners (BoC) is currently evaluating the tariff applications submitted by Jungle Energy Power (JEP) for electricity provision in Nimba and Bong counties. To facilitate this review, the Commission organized two public hearings in Bong and Nimba on September 25 and 27, 2023, attracting over 100 stakeholders, including local government officials, businesses, civil society organizations, and general electricity users. The aim of these hearings was to gather input and recommendations from community members, ensuring that all affected parties had a fair opportunity to contribute to the decision-making process regarding JEP’s tariff proposals.
The hearings were chaired by Commissioner Kla-Edward Toomey II, along with fellow commissioners and Managing Director Augustus V. Goanue. Toomey emphasized the importance of public engagement, stating that the deliberations would incorporate all substantive comments from stakeholders. The Commission is mandated under the 2015 Electricity Law of Liberia and associated regulations to provide a verdict on JEP’s application by December 2024, reflecting the insights and concerns gathered during these public sessions. Deputy Minister of Energy, Charles Umehai, echoed this sentiment, describing the hearings as a significant conduit through which the residents of JEP’s service areas could express their concerns and contribute to the Commission’s ultimate decision-making.
In JEP’s tariff proposal, General Manager Alieu Keita revealed that the company aims to keep end-user tariffs for residential and commercial customers at US$0.25, while medium voltage customers will see a reduction to US$0.215 for the next three years starting January 2025. Keita informed the audience that during the proposed tariff span from 2025 to 2029, they plan to connect approximately 8,741 new customers in the distribution areas of Bong and Nimba. However, he also highlighted substantial operational challenges faced by JEP, including discrepancies between the electricity billed by the Compagnie Ivoirienne d’Electricité (CIE) and what is received in terms of voltage, leading to financial losses and service reliability issues.
During the public hearings, stakeholders voiced concerns, primarily focusing on recurrent power outages, inadequate voltage levels, and the necessity of extending the electrical grid to underserved communities. A solution proposed by audiences was the connection of JEP to the regional Côte d’Ivoire, Liberia, Sierra Leone, and Guinea (CLSG) electricity network, which they believe would help mitigate low voltage issues and subsequently reduce service interruptions. The discussions also referenced a Power Purchase Agreement established in March 2013 between the Liberia Electricity Corporation (LEC) and CIE, which set the framework for supplying electricity to Liberian communities from Ivory Coast.
Following the agreement, a Distribution Licensee Assignment Agreement was signed in 2016 between JEP and LEC, granting JEP authority to operate in the Nimba County segment of the Cross-border Electrification Project, with operational activities commencing in 2018. The current tariff structure was set during negotiations in 2016, comprising payments of US$0.1478 per kilowatt-hour to CIE, plus an additional charge from LEC at US$0.01/kWh, resulting in JEP’s total cost of US$0.1578 for each kilowatt-hour distributed. The proposed tariffs, subject for review, are poised to become effective in January 2025, succeeding the tariffs established in previous years.
In conclusion, JEP has been granted two separate Large Micro Utility Distribution Licenses by the Commission as of 2021 and 2024, allowing it to supply electricity to communities in Nimba and Bong counties. Following the public hearings, Commissioner Toomey II reassured stakeholders that the BoC would announce and sanction the new tariffs for these counties in December 2024. These new tariffs will be valid for three years, commencing in January 2025, and may undergo minor adjustments based on ongoing evaluations and stakeholder feedback. As JEP navigates the complexities of electricity distribution in Liberia, these public consultations reflect a pertinent step towards aligning tariffs with community needs and addressing the challenges inherent in the energy sector.
