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ELECTRICITY

Generator rates in Lebanon have jumped 63% in two months


Generator rates in Lebanon have jumped 63% in two months

A private generator in Badaro. (Credit: Philippe HAGE BOUTROS / L'Orient-Le Jour)

BEIRUT — Generator rates have once again risen in Lebanon by amounts above their usual average, two months after the start of the war launched by the United States and Israel against Iran, which led to a fragile cease-fire, as the closure of the Strait of Hormuz and strikes on Gulf oil facilities pushed global oil prices higher.

The price per kilowatt-hour set for April bills by the Ministry of Energy now stands at 49,395 Lebanese Lira (LL), up 8,815 LL from the March tariff — an increase of nearly 22%. Over two months, the rise exceeds 63%, according to our calculations. In dollar terms, the kWh price has surpassed 55 U.S. cents, one of its highest levels in recent years.

Generators provide electricity during rationing periods, compensating for the shortcomings of the state utility Electricité du Liban (EDL). To calculate bills, subscribers must multiply the fixed rate by the number of kilowatt-hours consumed, based on readings from an individual meter that the generator operator must install.

To determine the tariff, the ministry used a price of 2,480,683 LL ($27.66) for 20 liters of diesel, up 25% since March and 77% over two months. The exchange rate used remains 89,700 LL to the dollar. Fixed charges were unchanged: 385,000 LL ($4.29 ) monthly for a maximum capacity of 5 amperes (A), and 685,000 LL ($7.64) for 10 A. Beyond 10 A, the ministry maintains an additional 300,000 LL ($3.34) for each extra 5 A increment.

All rates may be increased by 10% in rural or mountainous areas.

No changes were made to billing rules for three-phase installations, such as elevators, where additional fixed fees are calculated based on reference capacity. For example, an elevator powered by three phases of 15 A each should be billed 985,000 LL ($10.98) by the generator owner, instead of 2,785,000 LL ($31.05).

BEIRUT — Generator rates have once again risen in Lebanon by amounts above their usual average, two months after the start of the war launched by the United States and Israel against Iran, which led to a fragile cease-fire, as the closure of the Strait of Hormuz and strikes on Gulf oil facilities pushed global oil prices higher.The price per kilowatt-hour set for April bills by the Ministry of Energy now stands at 49,395 Lebanese Lira (LL), up 8,815 LL from the March tariff — an increase of nearly 22%. Over two months, the rise exceeds 63%, according to our calculations. In dollar terms, the kWh price has surpassed 55 U.S. cents, one of its highest levels in recent years. Read more Wartime price gouging under scrutiny as authorities step in Generators provide electricity during rationing periods, compensating for the...