Electricity consumers are still seething over recent power outages – the latest manifestation of Lebanon’s ongoing electricity crisis at Electrite Du Liban (EDL), which is being held responsible for up to 30% of Lebanon’s public debt. According to Mahmoud Baroud of the ministry of energy & water, it costs the government $1 billion a year to provide Lebanon with an average of 18 hours of electricity a day.
Because the state-owned electricity company is unable, at daily peak hours as well as throughout the height of summer and depths of winter, to produce enough electricity to support both private and industrial consumption, it has introduced exorbitantly high peak hour industrial rates to force companies to use generators.
Therefore, between the hours of 6:00am and 9:00am, 6:00pm and 9:00pm, and for 24 hours a day throughout the months of July and August, and February and March, industry pays LL320 ($0.21)/kw-hour. The off-peak industrial rate is LL80 ($0.05)/Kw-hour.
Federation of Lebanese Industrialists general manager Saad Oueini said that since the most recent power cuts, industrial electricity costs rose by another 20% to 30%.
“We think the government can afford to offer a standard industrial rate of LL100 ($0.07). For the moment, all the industries that use a lot of electricity can no longer compete with those in other countries. If nothing is done, these industries will have to shut down,” he fumed.
Meanwhile, the public is being forced to cope with paying up to 30% more to use a generator, even if it means flouting a 1992 law prohibiting their use within administrative Beirut. “Even I buy candles,” said Baroud.
