First decrease in generator tariffs since start of war in Lebanon

After rising more than 60% over two months following the resumption of war between Hezbollah and Israel on March 2 and the regional conflict that disrupted traffic through the Strait of Hormuz, private generator tariffs in Lebanon have recorded their first decline, tracking lower diesel prices, according to the latest pricing schedule issued by the Energy Ministry.

For May consumption, subscribers to private generators — which have filled the gap left by chronic shortages in state electricity production since the late 1980s — will pay LL46,289 per kilowatt-hour, down LL3,106 from April. In dollar terms, the decrease amounts to just over 3 cents per kilowatt-hour.

The Ministry based the new tariff on a diesel price of LL2,305,205 ($25.70) per 20 liters, down 7% from the previous month. Diesel prices had surged 77% over the preceding two months but have been declining in recent weeks.

Fuel importers say diesel's sharp rise — roughly double the pace of gasoline increases — was not solely driven by higher crude oil prices linked to the U.S.-Israeli war against Iran and Tehran's closure of the Strait of Hormuz. Prices continued to edge lower this week, with fuel oil declining 0.6% since Friday to $107.80 per ton, according to official fuel-price schedules.

The Ministry maintained the exchange rate used for tariff calculations at LL89,700 to the dollar.

Fixed monthly charges also remained unchanged: LL385,000 ($4.29) for a 5-ampere subscription and LL685,000 ($7.64) for a 10-ampere subscription. Above 10 amperes, generator operators may charge an additional LL300,000 ($3.34) for each extra 5-ampere increment.

All tariffs may be increased by 10% in rural and mountainous areas.

The Ministry also left the billing method for installations connected to three-phase meters unchanged. Under current rules, for example, an elevator powered by three 15-ampere phases should be billed LL985,000 ($10.98) per month rather than LL2,785,000 ($31.05).