By J. Dennis Weah
MONROVIA – The Liberia Electricity Regulatory Commission (LERC) with oversight responsibility to regulate the Liberia Electricity Corporation (LEC), the LEC Regulatory institution through its senior management team has updated the public on the strategic enforcement mechanism of the commission to supply electricity throughout the country.
Relying on the 2015 Electricity Law of Liberia which provides the legal basis for the establishment of LERC as the national regulator in the exercise of its duties and authorities, LERC has pronounced that it has developed 15 regulatory instruments that include regulations, codes, handbooks, guidelines, and methodology.
In a press conference on yesterday, Wednesday June 19, 2024 at the commission’s headquarters, the Chairman of the Board of Commissioners, Dr. Lawerence D. Sekajipo applauded His Excellency, President Joseph Nyumah Boakai on behalf of the commission for the opportunity to serve the country and people of Liberia.
“We also thank the President for his support to the work at the commission, the Government of Liberia through the Ministry of Mines and Energy for the continuous support to the Commission and the enhancement of our work over the past months,” Dr. Sekajipo asserted.
LERC boss stated that in December of 2023, the LERC licensed LIBERNERGY, Inc., a joint venture company contracted by the Liberia Electricity Corporation (LEC), to distribute electricity being supplied to south-eastern Liberia power from Cote d’Ivoire.
As part of their licensing requirements the electricity firm [LIBENERGY INC] is required to comply with the terms and conditions of its license.
As a follow up to the terms and conditions, an inspection was required. In April and May 2024, the Technical Regulations Directorate (TRD) conducted a month-long inspection of electricity distribution services being provided by LIBENERGY in parts of Nimba (Tappita), Grand Gedeh, River Gee and Maryland Counties.
In keeping with the Technical Regulations Directorate, the inspection was implemented with the objectives as follows to identify obvious structural problems and hazards such as leaning power poles, damaged equipment enclosures, and vandalism.
The inspection also aimed to work with licensed service providers in the development of a compliance Plan to cure problems identified during the inspection and to ensure that appropriate follow-up and corrective action is taken regarding problems identified during the inspection.
It was also to ensure that it maintains its distribution network in accordance with acceptable utility practice and performance standards in order to ensure reliability and quality of electricity service, on both a short-term and long-term basis throughout its connectivity.
In practical terms, the LERC boss explained that the following are key issues that were identified during the inspection and submitted by a team of the Technical Regulations Directorate.
They include huge vegetation under existing 33kV medium voltage lines; and lack of protection of transformers and provision of safe means of isolation for maintenance and operations.
In addition, there were damaged lightning arresters, and bypassed fuses, the lack of light poles, spare parts, and materials for the construction of a low voltage distribution network.
They also include lack of auto reclosers on the 33kV medium voltage lines, he said, adding that energy accounting is not prioritized and executed with transparency and damaged transformers, amongst others.
The commission also disclosed that copies of the inspection report were provided to LIBENERGY to address the concerns and that a meeting was held on 13 June 2024 with the senior management team of LIBENERGY Liberia at the headquarters of the commission.
Following the meeting, the Board of Commissioners issued the following directives, to include mandating LIBENERGY, a working partner, for implementation to present to the commission a comprehensive “smart plan” within 10 working days on how it will address technical issues and recommendations contained in the technical inspection report conducted by the Commission.
Furthermore, LERC alerts that it has denied LIBENERGY’s request for an extension of the end-user tariff application and directed it to submit to the Commission all requested documentation for the commencement of the tariff application process by the end of 31 July 2024 effectively with the expected outcomes.
LIBENERGY immediately begins the metering of customers within its service areas. “Failure to meter customers is a violation of the Customer Service and Quality of Supply Regulations which mandates that a customer cannot be unmetered for more than six months. LIBENERGY restores power to the Deanna Kay Isaacson School of Midwifery in Zwedru City, Grand Gedeh,” he said.
Moreover, LERC highlights the Liberia Electricity Corporation (LEC) tariff schedule in keeping with the 2015 Electricity Law of Liberia that the Board of Commissioners in May 2021 approved the Electricity Tariff Regulations and the Multi Year Tariff Methodology.
The Electricity Tariff Regulations and the Multi Year Tariff Methodology provide the framework for approving all tariffs through elaborate principles, methodology, process and other terms of supply of electricity within the electricity sector.
“In December 2021, the board also approved new rates and charges for five categories of customers within the LEC network and the new rates and charges came into effect on 1 January 2022. This was the first time in the history of the electricity sector of Liberia for the cost of electricity to be decided through a process that considered all the parameters in the generation, transmission and distribution of electricity,” Dr. Sekajipo indicated.
He named the five categories of customers as Social Customers, Prepaid Residential Customers, Postpaid Residential Customers, Prepaid Non-residential Customers, Postpaid Commercial Customers and Medium Voltage Customers.
The current tariffs for Social Customers is US$0.15 per Kilowatt-hour (no fixed charge), Prepaid Residential Customers tariff is set at US$0.24 per Kilowatt-hour with a monthly fixed charge of $2.48, Post-paid Residential Customers tariff is set at US$0.24 per Kilowatt-hour and monthly fixed charge of $4.47; Prepaid Non-residential Customers tariff is set at US$0.22 per Kilowatt-hour and monthly fixed charge of US$10.00, Post-paid Commercial Customers tariff is set at US$0.22 per Kilowatt-hour and monthly fixed charge of US$12.00; and Medium Voltage Customers tariff is set at US$0.19 per Kilowatt-hour and monthly fixed charge of US$50.00.
“These tariffs and charges duly approved by the commission have been paid by customers in the various categories since January 1, 2022. The commission re-emphasized that the fixed charges are intended to cover portions of LEC’s fixed cost of operations and to facilitate expansion of the network to unserved and underserved communities in LEC’s operational areas,” Dr. Sekajipo said.
He maintained that the fixed charges collected thus far by LEC have been used by LEC to extend electricity to 13 gap communities in Monrovia and reinforce the low voltage and medium voltage networks, including the installation of transformers, poles and streetlights. “This has significantly contributed to the provision of electricity to gap communities, which are usually outside of areas covered by donor funded electrification projects,” he disclosed.
The commission’s tariff regulation and multi-year tariff methodology require that tariffs approved by the commission remain valid for three years. “That means the approved tariffs currently paid by customers will expire on December 31, 2024,” he furthered.
In adherence to the regulations, Dr. Sekajipo said the commission will embark on a tariff review for LEC in the coming months to be able to set up and approve new price levels for electricity for customers connected to the LEC grid.
According to the chairman of the commission, the exercise will review all the cost drivers, assess the efficiency of those costs and incorporate emerging economic parameters in determining the tariff.
Therefore, he narrated that the goal of the pending review, which is the same as the earlier review, is to ensure that the prices paid by the various customer categories reflect the just and prudent costs incurred by the Liberia Electricity Corporation in the provision of electricity to its customers.
Meanwhile, the commission has begun the tariff determination process for Jungle Energy Power, Incorporated (JEP) for its distribution areas in Nimba and Bong Counties.
The goal of this process, like that of the LEC process, is to ensure that the prices charged by JEP Inc. to customers connected to its distribution network in Nimba and Bong counties are cost reflective and ensure continuous improvements of the network to ensure stable supply of electricity.
JEP Inc. is following the Commission in providing information we have requested. The commission has committed to update the public at the end of the entire process when a new tariff is decided and approved by the commission, he concluded.
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