For over two decades, Lebanon’s electricity sector has been in dire straits. Now though, with an unsettling economic crisis, obtaining and maintaining energy has become a no-win situation for residents and businesses alike. Although the government-owned power company Electricite du Liban (EDL) has had a monopoly over the sector, EDL has been incapable of providing 24-hour electricity. To provide a clearer picture, EDL-generated electricity averages about two hours per day across the country. Despite Law 129 being passed in 2019 asking the government to allow the private sector to build and operate electricity facilities, the government failed to grant any licenses.
With questions over the future involvement of the private sector, LIMS explained that the main issue is EDL’s monopoly. What is required today is not the transfer of the public monopoly to the private monopoly, but the liberation of the sector in its entirety. LIMS sees that the only path towards 24/7 electricity is the legalization of independent private investments in the sector, which means legalizing private power generation companies, as well as private electricity distribution companies (EDCs). Consumers would then have real options. Constant power outages would be a thing of the past, as residents would no longer have to depend on EDL’s energy supply.
LIMS Media Interviews:
- Solving Electricity Dilemma: By Privatization Or Liberalizing The Market? August 13, 2022: Lebanon 24, Article AR