LEC Proposes Hike in Electricity Tariff

LEC Proposes Hike in Electricity Tariff

By: Alphanso G Kalama,

Monrovia, Liberia — The Liberia Electricity Regulatory Commission (LERC) has ignited a firestorm of debate following the submission of a proposal for new electricity tariffs by the Liberia Electricity Corporation (LEC). The proposed tariffs, which could see significant increases across the board, have raised concerns among citizens and advocacy groups about the potential impact on households and businesses.

The proposed tariff structure, applicable from January 1, 2025, to December 31, 2027, includes a staggering 40% increase for social tariffs and a 37.5% increase for residential customers. Non-residential users are also facing a proposed hike of 36.4%. This move comes as the current tariff regime, which has already been criticized for its high rates, is set to expire at the end of 2024.

Critics are voicing their frustrations, arguing that the proposed increases are unjustifiable, especially in a nation grappling with economic challenges and high rates of poverty. “It’s outrageous that in a country where so many struggle to meet basic needs, the government would even consider raising electricity prices to this extent,” said a local activist. “This will disproportionately affect low-income families and small businesses, driving many to the brink of financial ruin.”

The LERC has stated that the proposed tariffs are in line with the 2015 Electricity Law of Liberia, which mandates regulatory approval for tariff changes. In an effort to maintain transparency, the Commission plans to conduct public hearings and stakeholder engagements to gather feedback before making a final decision.

However, some experts suggest that the tariff increases are indicative of broader systemic issues within the electricity sector, including inefficiencies and a lack of infrastructure investment. “While there may be a need to increase tariffs to improve services, this level of increase seems excessive without a clear plan for how the additional funds will be utilized to enhance service delivery,” commented an economist specializing in energy markets.

The proposed connection charges are also causing concern, with single-phase meter installation fees increasing from $20 to $40 and three-phase meters soaring from $350 to $630—an increase of over 300%. These hikes are expected to create further barriers to access for many Liberians who already struggle with electricity shortages and inconsistent supply.

As the Commission reviews LEC’s proposal, the outcome remains uncertain. Citizens and stakeholders are urged to engage in the upcoming public forums to voice their opinions and advocate for more equitable solutions. The discussions could shape the future of electricity access and affordability in Liberia, a critical issue for the nation’s development and economic stability.

With the clock ticking down to the end of 2024, the pressure is on for LERC and LEC to navigate this contentious landscape carefully. The stakes are high, as the proposed tariff changes could significantly impact daily life for countless Liberians.

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