Top: High tension wires on the Roberts International Airport highway in Margibi County. The DayLight/James Giahyue

By Dayugar Johnson

The proposed increase in electricity tariffs by the Liberia Electricity Corporation (LEC), under review by the Liberia Electricity Regulatory Commission (LERC), presents a multifaceted challenge given Liberia’s current economic climate.

With a 37% rise in residential prepaid rates and significant increases in connection fees (310% for single-phase meters and 80% for three-phase meters), this change may have profound implications on development, industrialization, the agricultural sector, and the general livelihood of Liberians. The public hearings and stakeholder consultations LERC plans to hold will be essential in capturing citizen perspectives, as the proposed tariff hike will likely exacerbate existing economic pressures.

In the context of development and industrialization, increased electricity costs may dampen investment and growth prospects. Reliable, affordable energy is a cornerstone for industrial expansion; however, with higher electricity rates, business operational costs will rise, potentially deterring new industries and burdening existing ones. For Liberia’s agricultural value chain, which relies heavily on processing and storage facilities requiring consistent energy, elevated costs could reduce profit margins, limiting the sector’s capacity to expand and innovate. These factors could, in turn, slow down employment generation and economic diversification, which are crucial for Liberia’s long-term economic stability.

The proposed tariff increase will likely immediately impact the livelihood and affordability of ordinary citizens, many of whom already struggle with high living costs and limited income opportunities. With residential rates projected to rise by over a third, energy expenses will consume a larger portion of household budgets, potentially leading to increased financial stress and even reduced access to basic amenities that depend on electricity. The substantial rise in connection fees may further widen the access gap for many rural and low-income communities, which could be priced out of essential services.

To balance these economic impacts, LERC and LEC must prioritize transparency in justifying the new rates and explore avenues to ensure affordability, particularly for vulnerable populations. Additionally, investing in alternative energy sources and improving energy efficiency could help mitigate long-term costs. The proposed public engagement activities present an opportunity for stakeholders to advocate for cost-effective solutions and a phased approach to tariff changes that considers Liberia’s economic realities and developmental needs.

Dayugar Johnson is a development practitioner and civil society activist with over 20 years in the NGO sector in Liberia. He is a former consultant for the American Jewish World Service in Liberia and is currently the team leader of the Civil Society Independent Forest Monitor.