The Electricity Sector of Liberia has been characterized by monopoly of generation, transmission, and distribution services, and there has also been a fusion of roles, where policy, regulation and operation were combined.

Regulatory functions of the energy sector were relegated to the Ministry of Lands, Mines and Energy (MLME), Ministry of Commerce and Industry (MoCI), Liberia Electricity Corporation (LEC), Rural and Renewable Energy Agency (RREA), Liberia Petroleum Refining Company (LPRC), National Oil Company of Liberia (NOCAL), and the Environmental Protection Agency (EPA). State-owned operators including the LEC and micro-utilities have been self-regulating. The result has been high electricity cost and inadequate services, which are major constraints to Liberia’s economic growth and poverty reduction.

To address the situation, the National Energy Policy (NEP) of Liberia was approved in 2009. It provides among others, liberalization of the sector and separation of policy, regulation, and operation.

The National Energy Policy led to the enactment of the 2015 Electricity Law of Liberia (ELL) on October 26, 2015. The ELL provides the legal basis for the establishment of the Liberia Electricity Regulatory Commission (LERC) as the National Regulator. LERC is an independent agency with respect to its budget, management, staffing and the exercise of its duties and authorities as prescribed in Section 13.3 of the Law.

LERC’s function, as regulator, is to issue licenses, approve tariffs, ensure liberalization of the sector, improve service delivery, protect consumers and create a vibrant electricity sector.