A neighborhood generator in the Baabda district, Nov. 18, 2024. (Credit: L'Orient Today)
The price per kilowatt-hour (kWh) produced and sold by private or neighborhood electricity generators for bills issued in December has risen by around thirty Lebanese pounds, ending a series of four months of consecutive decreases, according to the latest grid published by the Ministry of Energy and Water.
The tariff now stands at LL29,738, i.e. LL33 more than for the November bills, and a marginal increase of 0.11 percent, equivalent to $0.33, converted at the rate of LL89,700 to the dollar.
This new price is calculated on the basis of an average fuel oil price of LL 1,370,383 per 20 liters (+0.14 percent on November, for LL1,368,493). The price per kWh is usually increased by 10 percent for operators in mountainous (over 700 meters altitude) and/or rural areas, bringing it to LL32,712 ($0.36).
Other pricing components have not changed. In terms of fixed costs, for a maximum current of five amperes (A), the monthly rate is still LL385,000 ($4.29), while that for a current of 10A is LL685,000 ($7.64), prices that have been stable for some time now. The ministry also imposes a surcharge estimated this month at LL300,000 ($3.34) for additional 5A from 10A. These tariffs also include a 10 percent margin for the benefit of operators.
For installations connected to a three-phase meter (such as elevators), an additional charge is calculated on the basis of a basic capacity. So, for an elevator installed with three phases each capable of handling 15A, the generator owner would only have to charge LL985,000 ($10.98), not LL2,785,000 ($31.05).
Private generators have been tolerated for decades, during which time they have established themselves as a palliative to the structural production deficit of Électricité du Liban, whose technical and financial limitations prevent it from supplying all its subscribers 24 hours a day, despite a recent overall improvement in its situation.
To calculate their bill, each subscriber must multiply the set price by the number of kWh that corresponds to their consumption, which is read on an individual meter that the operator is supposed to have installed for them, an obligation that came into force in 2017 but was only really implemented starting around October 2018. Not all operators have complied with the ruling and charge their subscribers flat rates, regardless of the number of hours of power supply or consumption. Others require bills to be paid in dollars.