29/09/2024
Monrovia - LERC’s Board Reviews JEP’s Electricity Tariff Application for B**g and Nimba
The Board of Commissioners (BoC) of the Liberia Electricity Regulatory Commission (LERC) is currently reviewing the Jungle Energy Power’s (JEP) electricity tariff applications for Nimba and B**g counties.
On September 25 and 27, the Commission held two separate public hearings in B**g and Nimba counties to solicit the inputs, recommendation of customers and electricity users. During each hearing, more than 100 stakeholders, interest groups, local government officials among others participated.
The Commission earlier this year requested JEP to submit a tariff application in keeping with 2015 Electricity Law of Liberia (ELL) and the Electricity Tariff Regulations and Multi Year Tariff Methodology.
The public hearing was 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 said the public hearing was to ensure that all affected parties have “a fair and meaningful opportunity for participation” in the decision-making process of the Commission”.
He told stakeholders at the hearing that as required by the 2015 Electricity Law of Liberia and related regulations, the Commission’s decision in JEP’s application will be rendered in December 2024 and will address all substantive comments raised or submitted to the Commission.
The Deputy Minister Energy, Charles Umehai described the hearing as an opportunity for residents in JEP’s licensed areas to have an opportunity to contribute to the final decision making of the Commission.
“The hearing will also afford the Ministry of Mines and Energy the opportunity to know what the concern of residents and what is happening in Jungle’s operational areas in B**g and Nimba counties”.
In its tariff submission, the 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. Kieta told stakeholders that about 8741 new customers will be connected to the network in the B**g and Nimba distribution areas during the proposed tariff period from 2025 to 2029.
On challenges face by JEP in its operational areas, Mr. Keita informed the BoC and stakeholders that Jungle continues to receive a huge variance between the monthly bills sent from CIE- Compagnie Ivoirienne d'Electricité through Liberia Electricity Corporation (LEC) and the reading from our check meter which is of serious financial loss.
“Instead of receiving primary voltage of 33KV from Ivory Coast (CIE), JEP receives 31KV which reduces further as the Medium Voltage line extends. The B**g belt for instance receives 30KV and this makes the secondary voltage of our transformers sometimes as low as 370V, he lamented.
Following JEP’s separate submissions, Mr. Kieta was quizzed on its application, performance and operations in B**g and Nimba counties are rural communities with limited economic opportunities.
Key amongst concerns raised by members of the audiences was continuous power outages, low voltage and expansion of the grid across communities and among others.
Stakeholders at the hearing recommended to policymakers in order to address the issue of the low voltage, JEP be connected to the Côte d'Ivoire, Liberia, Sierra Leone and Guinea (CLSG) electricity network. This will reduce the level of outages and 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 the Ivory Coast. In 2016, JEP signed a Distribution Licensee Assignment Agreement LEC to operate the Nimba County segment of the Cross-border Electrification Project and actual operations began in 2018.
The current electricity tariffs were agreed by the parties during the negotiation of the Agreement in 2016.
The tariff is made up of 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 new 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 B**g 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 B**g counties. The tariff will last for three years beginning January 2025 and subject to minor adjustments.
