In an effort to ensure all affected parties have “a fair and meaningful opportunity for participation” in the decision-making process of the Commission, the Board of Commissioners (BoC) of the Liberia Electricity Regulatory Commission (LERC) says it is currently reviewing Jungle Energy Power’s (JEP) electricity tariff applications for Nimba and Bong counties.
According to LERC, on September 25 and 27, the Commission held two separate public hearings in Bong and Nimba counties to solicit inputs and recommendations from customers and electricity users.
A release from the Commission indicates that during each hearing, more than 100 stakeholders, interest groups, and local government officials participated.
The Commission earlier this year requested JEP to submit a tariff application in accordance with the 2015 Electricity Law of Liberia (ELL) and the Electricity Tariff Regulations and Multi-Year Tariff Methodology.
The public hearings, which were chaired by Commissioner Kla-Edward Toomey, II, along with Commissioners Amara M. Kamara, Claude J. Katta, and Managing Director Augustus V. Goanue, brought together local government authorities, stakeholders, JEP, businesses, civil society organizations, interest groups, and the public.
Commissioner Atty. Toomey, II stated that the public hearing was meant to ensure that all affected parties have “a fair and meaningful opportunity for participation” in the decision-making process of the Commission. During the hearing, Toomey II told stakeholders that, as required by the 2015 Electricity Law of Liberia and related regulations, the Commission’s decision regarding JEP’s application will be rendered in December 2024 and will address all substantive comments raised or submitted to the Commission.
The Deputy Minister of Energy, Charles Umehai, described the hearing as an opportunity for residents in JEP’s licensed areas to contribute to the final decision-making of the Commission.
“The hearing will also afford the Ministry of Mines and Energy the opportunity to understand the concerns of residents and what is happening in Jungle’s operational areas in Bong and Nimba counties.”
In its tariff submission, General Manager Alieu Keita informed the Commission that JEP was proposing that the three end-user tariffs for residential and commercial customers remain at US$0.25, while medium voltage customers will pay US$0.215 for a three-year period beginning January 2025. Mr. Keita told stakeholders that about 8,741 new customers will be connected to the network in the Bong and Nimba distribution areas during the proposed tariff period from 2025 to 2029.
Regarding challenges faced by JEP in its operational areas, Mr. Keita informed the BoC and stakeholders that Jungle continues to experience a significant variance between the monthly bills sent from CIE—Compagnie Ivoirienne d’Électricité—through the Liberia Electricity Corporation (LEC) and the readings from their check meters, which leads to serious financial losses. “Instead of receiving a primary voltage of 33KV from Ivory Coast (CIE), JEP receives 31KV, which further decreases as the medium voltage line extends. The Bong belt, for instance, receives 30KV, resulting in the secondary voltage of our transformers sometimes being as low as 370V,” he lamented.
Following JEP’s separate submissions, Mr. Keita was quizzed on its application, performance, and operations in Bong and Nimba counties, which are rural communities with limited economic opportunities. Key concerns raised by audience members included continuous power outages, low voltage, and the expansion of the grid across communities, among others.
Stakeholders at the hearing recommended to policymakers that, in order to address the issue of low voltage, JEP be connected to the Côte d’Ivoire, Liberia, Sierra Leone, and Guinea (CLSG) electricity network. This connection would reduce the level of outages and improve the required voltage, Mr. Jacob Kollie asserted.
In March 2013, a Power Purchase Agreement (PPA) was signed between the LEC and CIE for the supply of electric power to communities in Liberia from Ivory Coast. In 2016, JEP signed a Distribution Licensee Assignment Agreement with LEC to operate the Nimba County segment of the Cross-border Electrification Project, with actual operations beginning in 2018.
The current electricity tariffs were agreed upon by the parties during the negotiation of the Agreement in 2016. The tariff consists of a payment of US$0.1478 per kilowatt-hour billed by CIE for electricity supplied, plus LEC charges and fees of US$0.01/kWh on each unit sold. This means that JEP pays US$0.1578 per kilowatt-hour billed for the power distributed in its operational area.
The newly approved electricity tariffs will go into effect in January 2025. It can be recalled that in 2021 and 2024, JEP received two separate Large Micro Utility Distribution Licenses from the Commission to distribute electricity to communities in Nimba and Bong counties.
At the end of the hearings, Commissioner Atty. Toomey, II informed stakeholders that in December 2024, the BoC will approve and announce new tariffs for Nimba and Bong counties. The tariff will last for three years, beginning in January 2025, and will be subject to minor adjustments.
