In a comprehensive statement delivered on June 19, 2024, Dr. Lawrence D. Sekajipo, CPA, CFE, DBA, JSM, Chairman of the Board of Commissioners of the Liberia Electricity Regulatory Commission (LERC), addressed critical issues and outlined key developments within the electricity sector of Liberia.
Highlighting the regulatory framework provided by the 2015 Electricity Law of Liberia, Dr. Sekajipo emphasized LERC’s pivotal role as the national regulator overseeing the electricity sector.
He underscored the Commission’s achievements in developing 15 regulatory instruments, encompassing regulations, codes, handbooks, guidelines, and methodologies, crucial for effective governance and operational standards.
A significant focus of the statement was the licensing of LIBENERGY, Inc., a joint venture tasked with distributing electricity from Cote d’Ivoire to southeastern Liberia under the Liberia Electricity Corporation (LEC).
Following the issuance of the license, LERC conducted a thorough month-long inspection in April and May 2024.
This inspection, conducted by the Technical Regulations Directorate, aimed to assess the operational integrity and compliance of LIBENERGY with regulatory standards across Nimba (Tappita), Grand Gedeh, River Gee, and Maryland counties.
Key findings from the inspection highlighted critical infrastructure deficiencies, including vegetation encroachment on 33kV medium voltage lines, inadequate transformer protection, damaged equipment, and deficiencies in energy accounting transparency.
Dr. Sekajipo reiterated the Commission’s commitment to ensuring adherence to utility best practices and stringent performance standards for enhanced service reliability and quality.
In response to these findings, LERC promptly issued directives to LIBENERGY, including the submission of a comprehensive corrective action plan within 10 working days.
Additionally, LERC denied LIBENERGY’s request for a tariff application extension, mandating submission of all necessary documentation by July 31, 2024.
Moreover, LIBENERGY was instructed to initiate immediate metering of customers, emphasizing compliance with Customer Service and Quality of Supply Regulations.
Dr. Sekajipo further elaborated on the existing tariff structure approved by LERC in May 2021, which categorizes customers into Social, Prepaid Residential, Postpaid Residential, Prepaid Non-residential, Postpaid Commercial, and Medium Voltage segments.
These tariffs, designed to reflect the cost of service provision and facilitate network expansion, have been effective since January 1, 2022.
The Commission affirmed its commitment to conducting a comprehensive tariff review by the end of 2024 to ensure tariff levels align with current economic and operational realities.
Additionally, the Commission disclosed ongoing tariff determination processes for Jungle Energy Power, Incorporated (JEP) in Nimba and Bong counties.
This process aims to establish cost-reflective tariffs that support network improvements and sustainable electricity supply in the region.
Dr. Sekajipo concluded by reaffirming LERC’s dedication to fostering a robust and transparent electricity sector that meets the evolving needs of Liberian consumers.
He assured stakeholders of continuous updates and adherence to regulatory principles in all facets of LERC’s operations.
