Let there be light at end of the tunnel for Lebanon’s electricity crisis! Economy and Trade Minister, Raed Khoury, formally announced on Thursday 6 June 2018 that the government has moved an amendment to the resolution n°1/135/E, rendered in 2017, to establish formal guidelines for the private electricity sector (informal generators).
Lebanon’s electricity crisis is not new as it dates back to the civil war (1975-1990), when the electricity infrastructure was subjected to a great damage.
After that, the government of Lebanon launched between 1992 and 2002 an emergency rehabilitation plan which to date has consumed 33% of the reconstruction budget and proved to be inefficient as the government’s quick-fix solutions still constrained by a limited budget, the electricity demand exceeds the supply and its production remained dependent on oil prices.
Informal generators play therefore a very important role for many Lebanese citizens to improve their access to public infrastructure services, ensure an uninterrupted current supply of power and cover their needs for electricity.
Thus, the Lebanese are paying a double electrical tariff, one for the Electricité du Liban (EDL) and the other for the owners of generators, while experiencing the most unreliable service in the region.
To resolve Lebanon’s Electricity crisis, Raed Khoury issued an amendment to the resolution n°1/135/E to promote private sector participation, identify and establish formal guidelines for the private generators.
Raed Khoury’s plan to improve the tariff regulation mechanism
Minister of Economy and Trade Raed Khoury issued an amendment to the resolution n°1/135/E.T, jointly rendered with the Minister of Energy and Water, César Abi, and the private generators. The said update stipulates an extension of the time limit given to the informal generators to comply with the installation of electromechanical induction meters according to the specifications approved by the EDL till 01/10/2018.
Private companies thus should make a declaration to the Ministry of Economy and Trade to make sure they are compliant with the tariff guide fixed by the Ministry of Power and Water.
The Ministry undertook to control this tariff and for any violation of this regulation mechanism, the persistent perpetrators shall be subject to the penalties specified in the Consumer Protection Law and the Penal Code.
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