(Credit: João Sousa)
BEIRUT — The price of the kilowatt hour (kWh) of electricity supplied by owners of private generators fell in April, following a 31.4 percent increase in March, due to the Lebanese lira's relative appreciation against the US dollar.
The Ministry of Energy set the price of a kWh in April at LL34,420, a decrease of 5.36 percent compared to the previous month's tariff which stood at LL36,371. The tariff was also increased by 10 percent in mountainous (over 700 meters above sea level) and rural areas to LL37,862 per kWh.
The April tariff was calculated on the basis of the average price of fuel oil valued at LL1,642,777 per 20 liters, in the context of falling global fuel prices and the collapse of the Lebanese lira against the dollar. This level represents a price decrease of 6.03 percent as compared to the previous month (1,748,118 pounds 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 LL97,101 to the dollar, compared to a rate of LL98,675 it used in March.
The bills in USD have been slightly falling since the start of 2023, with the kWh rate falling from $0.39 in January, to $0.38 in February, $0.37 in March and $0.35 this month. 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 LL360,000 (compared to LL365,000 the previous month); for a maximum current of 10 A, the flat rate is LL610,000 (compared to LL565,000 the previous month).
The Ministry is also imposing a surcharge estimated this month at LL250,000 for each additional 5 amps over 10 amps, compared to LL200,000 the previous month.
The Ministry has also maintained the specificities introduced for elevators and for common parts 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, oftentimes 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. The Ministry of Energy also calls on the Ministry of Economy to strengthen the enforcement of these measures.
