Lebanon’s new electricity plan

On April 8, the Council of Ministers adopted a new electricity policy paper, aimed at reforming the sector. However, the plan is lacking the key components it aims to address—the financial analysis and the impact on the economy—and also highlights structural issues in the government decision-making process. The electricity sector is a heavy contributor to Lebanon’s public debt and a significant burden on the economy, causing tremendous losses in the value of the lost load, the fiscal deficit, and the overall lack of competitiveness. The public utility, Electricité du Liban (EDL), is estimated to cost the state somewhere between $1.5 and $2 billion a year. Fiscal reforms are on the government’s priority agenda as the debt to GDP ratio has surpassed 150 percent, the country’s credit rating has dropped, and the international community is seeking serious reform in exchange for unlocking the $11 billion pledged toward Lebanese infrastructure by donors