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LEC’s Responsibilities Under The New LERC “Incentive Framework”

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PHOTO: LERC’s Chairman, Dr. Lawrence D. Sekajipo

The Board of Commissioners (BoC) of the Liberia Electricity Regulatory Commission (LERC) on 9 March 2021 provisionally approved a request from Liberia Electricity Corporation (LEC), to implement an “Incentive Framework” for large electricity consumers using high security pre-paid meters.

The proposed incentive level provides a 22% discount for large customers using the high security prepaid meters which equates to around US$0.27/KWh from the date of approval to 30 June 2021.

“The incentive or discount applies to large customers with high security prepaid meter who will purchase electricity tokens of about US$1,000 or more per purchase”, the resolution reads.

The decision to approve the LEC’s incentive scheme is intended for LEC to attract potential large consumers to connect to its grid and to retain all large consumers as customers of the Corporation, according to the resolution signed by LERC’s Chairman Dr. Lawrence D. Sekajipo and Commissioner Michael Korkpor, Esq.

The LERC Board resolution posted on the Commission’s website averred that framework targets large consumers; and provides an opportunity for consumers to take up the incentive offered by LEC to increase consumption and revenue which will contribute to a reduction in commercial losses currently faced by the Corporation.

Meanwhile, with the approval of the incentive scheme, LEC is expected to forward to the Commission its billing and energy consumption statistics of all large customers covering the period 1 January 2019 to 21 December 2020.

The Corporation will also submit a monthly performance report on the implementation of the incentive scheme to the Commission to facilitate monitoring and post implementation review.

It can be recalled, the Commission recently issued six licenses to the Liberia Electricity Corporation to operate within the electricity industry.

 

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