LERC Cuts LIBENERGY Tariff by 12%, Slashes Connection Fee | Business

The Liberia Electricity Regulatory Commission (LERC) has approved a 12 percent reduction in LIBENERGY’s electricity tariff and slashed the cost of new single-phase electricity connections from US$110 to US$40; a move aimed at expanding access to affordable electricity while improving the quality and reliability of power services in southeastern Liberia.

The decision, announced on July 6 in Zwedru City, Grand Gedeh County, follows months of technical assessments, stakeholder consultations, and public hearings conducted across Nimba, Grand Gedeh, River Gee, and Maryland counties, where LIBENERGY provides electricity services.

Speaking during the announcement, LERC Board Chairman Claude J. Katta described the new tariff as a significant regulatory milestone that seeks to balance consumer affordability with the financial sustainability required for the utility to maintain, improve, and expand its electricity network.

Under the revised three-year tariff, which takes effect on August 1, 2026, electricity consumers will pay US$0.22 per kilowatt-hour (kWh), down from the previous US$0.25 per kWh. The Commission also approved a monthly fixed charge of US$1.50 to finance network reinforcement and improve the reliability and quality of electricity supply.

As part of the new tariff package, the connection fee for new single-phase customers has been reduced by 64 percent to US$40. LERC explained that the remaining US$70 cost of the standard connection package will be recovered through the approved energy tariff over time. The package includes an electricity meter, up to 25 meters of low-voltage cable, and the necessary connection accessories. The Commission also approved a connection fee of US$330 for three-phase customers.

LERC said the newly approved tariff replaces the provisional rates granted to LIBENERGY in 2023 and will remain effective through July 31, 2029, subject to annual minor adjustments under the Commission’s Multi-Year Tariff Methodology.

Despite approving the revised tariff, the Commission identified operational and service delivery shortcomings during its review process. It directed LIBENERGY to immediately address the deficiencies and warned that failure to comply within the prescribed timeframe could result in regulatory sanctions under Liberia’s Electricity Law.

“The revised tariff must translate into better service, improved network reliability, increased customer connections, and greater accountability to the people of Liberia,” Chairman Katta emphasized.

LERC further announced that it will publish a comprehensive tariff decision report on August 1, 2026, detailing the technical evaluations, financial analysis, and regulatory considerations that informed the Commission’s decision.

According to the Commission, the tariff adjustment is designed not only to ensure fair and cost-reflective electricity pricing but also to strengthen public confidence in Liberia’s electricity sector, encourage greater access to electricity, and deliver improved value for consumers.

The decision has been welcomed by local authorities and community stakeholders.

Grand Gedeh County Manager Jerry Karr commended the Commission for maintaining close collaboration with stakeholders throughout the tariff review process. He disclosed that LIBENERGY’s senior management would issue a formal response to the Commission’s ruling.

Chairperson of the House of Representatives Committee on Lands, Mines, Energy and Environment, Representative Jeremiah Sokan, also praised the Commission for what he described as a consumer-centered decision. He urged LIBENERGY to match the lower tariffs with improved service delivery, noting that reliable and affordable electricity would boost livelihoods and stimulate business growth across the company’s service areas.

Grand Gedeh County Superintendent Alex Grant similarly welcomed the tariff reduction, describing it as a gradual but meaningful step toward improving the welfare of ordinary Liberians.

Residents and representatives of civil society organizations across Grand Gedeh also applauded the Commission’s decision, expressing optimism that the lower electricity costs would be accompanied by more reliable power supply and improved customer service.

Background

LERC is the statutory regulator responsible for overseeing Liberia’s electricity sector and ensuring that electricity tariffs remain fair, transparent, and financially sustainable while protecting consumer interests. The Commission conducts periodic tariff reviews for licensed electricity operators based on technical performance, operational costs, investment needs, and public consultations.

LIBENERGY is one of Liberia’s licensed electricity service providers, supplying electricity to communities in Nimba, Grand Gedeh, River Gee, and Maryland counties. The utility has been operating under provisional tariffs approved in 2023 while undergoing a comprehensive regulatory review.

The new tariff determination forms part of Liberia’s broader efforts to strengthen the power sector, expand electricity access beyond the national grid, attract investment in energy infrastructure, and improve service delivery in underserved regions as the country works toward increasing nationwide electrification.