Private generator switches. (Credit: João Sousa/L'Orient Today)
BEIRUT — The price of electricity again rose in January in accordance with a drop in the value of the Lebanese lira against the dollar on the parallel market, according to prices published by the Energy Ministry on Tuesday.
According to the Energy Ministry, the price per kilowatt hour (kWh) produced by private generators in January is now LL19,641, an increase of 15.5 percent compared to the previous month's tariff (LL17,004). In accordance with the applied modalities, this tariff is increased by 10 percent in mountainous (more than 700 meters above sea level) and/or rural areas to LL21,605 per kWh.
The January tariff was calculated based on the average price of fuel oil over the month: LL653,056 per 20 liters. As it does every month, the ministry also accounted for the additional costs incurred by generator operators (changing oil, filters and other parts), as well as the depreciation cost of the generator itself, using an exchange rate of LL50,362 to the dollar, compared to a rate of LL39,285 used in December.
The bill when calculated in dollars, however, decreased as the kWh price went from $0.43 in December to $0.39 in January due to a drop in world oil prices to levels prior to Russia's invasion of Ukraine at the end of February 2022, which caused them to soar.. These rates also include a 10 percent margin for the benefit of the generator operators.
For a maximum current of 5 amperes, the monthly charge is LL185,000 in January (compared to LL130,000 the previous month). For a maximum current of 10 amperes, the charge is LL335,000 (compared to LL250,000 the previous month). The ministry is also imposing a surcharge, estimated this month at LL150,000 for each additional 5 amperes for clients with 10 amperes or more, compared to LL120,000 each month since September.
In a statement issued upon announcing the decision, the Energy Ministry once again called on generator owners to comply with the decision of the Economy and Trade Ministry regarding the obligation to install meters. The ministry also pointed out that generator owners are not allowed to display their prices in dollars or add extra charges such as VAT to the invoice unless they are registered with the Finance Ministry in accordance with the law, and called on the Economy Ministry to strengthen the enforcement of these measures.