The kilowatt-hour produced by district generators was priced at LL36,371 in March, up by 31.4 percent compared to February's rate. (Credit: João Sousa)
BEIRUT — The price of the kilowatt-hour (kWh) of electricity supplied by owners of private generators rose sharply in March, following a 40.9 percent increase in February, due to the Lebanese lira's steep depreciation against the US dollar.
The Ministry of Energy set the price of a kWh on Thursday at LL36,371, an increase of 31.4 percent compared to the previous month's tariff which stood at LL27,677. The tariff was also increased by 10 percent in mountainous (over 700 meters) and rural areas to LL40,008 per kWh.
The March tariff was calculated on the basis of the average price of fuel oil valued at LL1,748,118 per 20 liters, in the context of falling global fuel prices and the collapse of the Lebanese lira against the dollar. This new level represents a price increase of 30.5 percent as compared to the previous month (1,339,497 lira per 20 liters of fuel oil).
As it does every month, the ministry took account of the additional costs incurred by operating generators (changing oil, filters and other parts), as well as the depreciation cost of the generator itself, using an exchange rate of LL98,675 to the dollar, compared to the LL72,111 rate it used in February.
The bills in USD have remained almost constant since the start of 2023, with the kWh rate going from $0.39 in January, to $0.38 in February and $0.37 in March. It should be noted that these rates also include a 10 percent margin for the benefit of operators.
To calculate the total bill, the price per kWh must be multiplied by the consumption. In addition, there is a flat rate that varies according to the maximum current delivered in amperes (A). For a maximum current of 5 A, the monthly flat rate is set at LL365,000 (compared to LL250,000 the previous month); for a maximum current of 10 A, it is set at 565,000 pounds (compared to 540,000 pounds the previous month).
The Ministry is also imposing a surcharge estimated this month at LL200,000 for each additional 5 amps over 10 amps, the same amount as the previous month.
The Ministry has also maintained the specificities introduced for elevators and common areas of buildings, indicating that their fixed tariffs will be calculated on the basis of a single-phase installation.
In this context, the Ministry of Energy has once again called on generator owners to comply with the decision of the Ministry of Economy regarding the obligation to install meters.
This rule was put in place in 2018. While it is illegal for generator operators to refuse to install such meters, many have refused to comply and continue to apply flat rates, sometimes required in dollars.
The Ministry of Energy specifies that the owners of generators are not allowed to display their prices in dollars, to add extra charges to customers who have installed solar panels, or to add VAT to the bill if they are not registered in accordance with the law with the Ministry of Finance, and calls on the Ministry of Economy to strengthen the enforcement of these measures.