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ENERGY

Private generator rates decrease for the third consecutive month in Lebanon

The price per kilowatt-hour produced in October decreased by 0.9% compared to September.

Private generator rates decrease for the third consecutive month in Lebanon

The rates per kilowatt-hour provided by private generators saw a slight decrease in October. (Credit: Fouad Gemayel/OLJ)

The price per kilowatt-hour (kWh) produced and sold by private or neighborhood generators in October decreased for the third consecutive month, now set at 29,809 LL ($0.33).

This latest 0.9% drop (from 30,072 LL in September) will be applied to October's kWh rate when calculating subscriber bills for generators supplying electricity to address the long-standing structural deficit from the public utility Electricité du Liban (EDL). EDL, dependent on an agreement with Iraq, has been providing only a few hours of power daily for nearly two years.

The new rate is based on an average fuel price of 1,374,366 LL per 20 liters, down 1.1% from September’s 1,389,235 LL per 20 liters. The kWh rate is typically increased by 10% for operators in mountainous (above 700 meters) and/or rural areas, bringing it to 32,790 LL ($0.37).

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To calculate their bill, each subscriber must multiply the set kWh rate by their consumption, as recorded on an individual meter that operators are required to install. This obligation was enforced starting in 2017 but only significantly accelerated from October 2018. However, not all operators comply, with some still charging flat rates regardless of consumption or hours of supply, and others requiring payments in dollars.

In addition to the kWh rate, there are fixed fees. For a maximum intensity of 5 amps (A), the monthly flat fee remains at 385,000 LL, while a 10 A intensity costs 685,000 LL — prices that have been stable for some time. The ministry also imposes a surcharge this month of 300,000 LL for each additional 5 A starting from 10 A. These rates also include a 10% margin for operators.

For installations on a three-phase meter (e.g., elevators), an additional flat fee is calculated based on base capacity. For instance, for an elevator installed with three phases supporting 15 A each, the generator owner should charge only 985,000 LL, not 2,785,000 LL.

The price per kilowatt-hour (kWh) produced and sold by private or neighborhood generators in October decreased for the third consecutive month, now set at 29,809 LL ($0.33).This latest 0.9% drop (from 30,072 LL in September) will be applied to October's kWh rate when calculating subscriber bills for generators supplying electricity to address the long-standing structural deficit from the public...