By: Trokon S. Wrepue – trokon1992seokin@gmail.com
MONROVIA— In a major relief for electricity consumers across Liberia, the Liberia Electricity Regulatory Commission (LERC) has approved reduced electricity tariffs for household customers, following months of technical reviews and nationwide public consultations.
Announcing the decision, LERC Board Chairman Claude J. Katta said the new tariffs are aimed at improving affordability for households—especially low-income families—while ensuring the financial sustainability of the Liberia Electricity Corporation (LEC).
The new tariffs, which take effect January 1, 2026, will remain in force until December 31, 2028.
Relief for Low-Income and Residential Consumers
Under the approved tariff structure, social tariff customers, who consume 25 kilowatt-hours (kWh) or less per month, will now pay 13 US cents per kWh, down from 15 US cents—a 13.3 percent reduction.
Importantly, customers in this category will continue to pay no monthly fixed charge, protecting Liberia’s poorest households.
For prepaid residential customers, the tariff has been reduced from 24 to 22 US cents per kWh, representing an 8.3 percent decrease. Their monthly fixed charge has also dropped from US$2.48 to US$2.00, a 19.4 percent reduction.
Similarly, postpaid residential customers will now pay 22 US cents per kWh, down from 24 US cents, while their fixed monthly charge has been reduced from US$4.47 to US$3.79—a 15.2 percent cut.
“These decisions reflect our commitment to balancing affordability for households with the need to keep electricity services reliable and financially viable,” Chairman Katta said.
Nationwide Consultations Informed Decision
The tariff decision follows an extensive and transparent review process guided by the 2015 Electricity Law of Liberia, the Electricity Tariff Regulations, and the Multi-Year Tariff Methodology.
Between October and November 2025, LERC conducted six public hearings in Montserrado, Margibi, Bomi, Grand Cape Mount, Grand Bassa, and Rivercess counties, attracting more than 1,000 participants and generating over 100 written submissions.
Public concerns focused heavily on tariff reduction, power reliability, customer service, grid expansion, and safety, all of which informed the Commission’s final determination.
Loss Reduction and Efficiency Key to Lower Tariffs
LERC attributed the tariff reductions largely to projected improvements in system efficiency. According to the Commission, technical and commercial losses are expected to decline from 41 percent in 2025 to 28 percent by 2028, a move that directly supports lower end-user tariffs.
“Every percentage-point reduction in system losses lowers electricity tariffs by approximately 1.8 percent,” Chairman Katta noted.
The Commission also cited improved generation planning through a merit-order dispatch framework, ensuring that lower-cost power sources are prioritized, further reducing costs passed on to consumers.
Regulatory Levy and Investment Outlook
The approved end-user tariffs include a 3.5 percent regulatory levy to support LERC’s operations, as required by law. Meanwhile, LEC is projected to invest US$256 million over the tariff period to modernize infrastructure, expand access, and improve reliability.
Electricity customers are expected to grow by over 74 percent, while energy consumption could increase by more than 150 percent during the tariff period, reflecting expanding access and demand.
The new tariffs take effect January 1, 2026. LERC says a detailed tariff report explaining the full rationale behind the decision will be published on its website and shared with stakeholders on December 19, 2025.
Chairman Katta thanked the Government of Liberia, lawmakers, LEC management, development partners, the media, and the public for their engagement throughout the process, describing the tariff decision as “a critical step toward affordable and sustainable electricity for Liberian households.”
