Neighborhood generators installed on the side of a road in a residential area of Kesrouan. (Credit: PHB)
The price per kilowatt-hour (kWh) for private, or neighborhood, generators, which supply electricity to make up for state-owned Electricité du Liban (EDL) shortfalls, has been set at LL34,286 for February, according to the latest tariff update, published Wednesday by the Energy Ministry.
The new rate is 5.4 percent higher than the December rate (LL32,528). The price per kilowatt-hour is therefore back on the rise, after three months of consecutive, albeit minimal, price drops. Converted at the exchange rate used by the ministry for its calculations, i.e. LL89,700 to the US dollar, this rate is equivalent to $0.38.
The price per kWh is 10 percent higher in mountainous regions (over 700 meters altitude) and rural areas, where it rises to LL37,715.
The January tariff was calculated on the basis of the average price of fuel oil, valued at LL1,627,264 per 20 liters, representing an increase of 6.5 percent on the previous month. The average exchange rate used for the calculation remains unchanged from the previous month, at LL89,700.
To calculate their individual generator bill, each customer must multiply the price per kWh supplied by the ministry by their consumption as recorded on the meter generator operators are legally required to have installed. To this must be added a flat-rate charge that varies according to the maximum current delivered in amperes (A).
For a maximum current of 5A, the monthly charge is set at LL385,000 (as for the previous month); for a maximum current of 10A, it is set at LL685,000 (unchanged). The ministry is also imposing a surcharge estimated this month at £300,000 for each additional 5 amperes above 10 amperes. These tariffs also include a 10 percent margin for the benefit of operators.
The ministry is also maintaining the specific provisions for lifts and common areas in buildings with a three-phase connection, specifying that their fixed tariffs will be calculated on the basis of a single-phase installation. For example, if the lift and common areas have a 3 x 15A three-phase circuit breaker, their fixed rates will be calculated on the basis of a 15A capacity, not a 45A capacity, i.e. LL985,000 in February (unchanged), not LL2,785,000.
While many owners of generators — an illegal sector but one that is tolerated because of EDL's chronic shortcomings — are applying the tariffs and directives put in place by the Energy Ministry and the Economy and Trade Ministry, a significant of them have refused to comply and continue to charge flat rates, sometimes in dollars, which is illegal. Others go so far as to charge VAT to their subscribers or add extra charges to customers who have installed solar panels.