MONROVIA, LIBERIA – In a decisive move to stabilize electricity costs and enhance Liberia’s energy infrastructure, President Joseph Boakai has signed Executive Order #138, exempting the Liberia Electricity Corporation (LEC) from customs duties and Goods and Services Tax (GST) on generation, transmission, and distribution equipment, materials, and fuel.
The Executive Order replaces the expired Executive Order #122, underscoring the government’s commitment to reducing the financial burden on LEC and its customers.
It acknowledges the significant challenges faced by the corporation, including rising fuel costs and operational expenditures that impede the transition to hydroelectric power, particularly at the Mount Coffee Hydropower Plant.
The order exempts LEC from customs duties and GST on petroleum products, notably Heavy Fuel Oil (HFO), which constitutes a major cost for the corporation.
It also covers essential equipment and materials for electricity generation, transmission, and distribution, including electric transformers, refined copper and aluminum conductors, stranded wires and cables, insulated electric conductors and optical fiber cables, and light poles of wood and base metal.
The order highlights several critical reasons for its issuance: reducing the high costs associated with fossil fuels to keep electricity rates affordable for the public; addressing external market risks that elevate operational costs, enabling LEC to achieve greater financial and operational stability; supporting LEC’s transition to more sustainable energy sources, such as hydroelectric power; and enhancing the National Electricity Grid’s capacity to reach more Liberians and support economic growth.
The Boakai administration is focused on ensuring that LEC delivers reliable and affordable electricity. This policy seeks to stabilize the corporation’s operational costs while enabling it to expand its customer base and improve its infrastructure.
By exempting LEC from volatile cost categories like customs duties on petroleum and key equipment, the government aims to prevent further hikes in electricity prices and foster national development.
Executive Order #138 is expected to have an immediate impact on stabilizing electricity costs and advancing Liberia’s energy infrastructure, a critical component of the nation’s ongoing development efforts.
