Green Grid, البنية التحتية, الكهرباء ومصادر الطاقة المتجددة, الملخص الاقتصادي

Electricity Reform: A call for Transparent Pricing and Warning Against Government Management

13:04 | 31 آذار 2024LIMS output
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Electricity

EDL’s recent endeavor to repair its pricing structure, promising improved electricity supply and bill collections in exchange for higher tariffs, has met yet another failure. While prices surged promptly, the anticipated enhancements in power supply and bills collections faltered, disproportionately burdening compliant bill payers while absolving non-paying consumers.

In response, LIMS has underscored a series of corrective actions imperative for aligning EDL’s pricing model with actual household consumption, steering away from a tax-like imposition on all households irrespective of their electricity usage. These recommendations encompass: (1) scrapping the fixed rehabilitation allowance, debunking its purported use for system refurbishment. (2) Transitioning from a fixed meter fee to a variable fee indexed to actual hours of electricity provision. (3) Pricing electricity in Lebanese pounds based on real-time market exchange rates during consumption, providing transparency on kilowatt-hour costs and averting billing surprises months or years later. (4) Abolishing value-added tax (VAT) on meter fees and associated consumption charges.

Meanwhile, the Council of Ministers stands at the cusp of a pivotal decision concerning the “Electricity of Zahle (EDZ)” concession, a private utility responsible for electricity generation and distribution in Zahle under a concession pact. LIMS clarified that authorities failed to renew the contract of EDZ post-concession expiry in 2018, coupled with the failure to reclaim assets and equipment as stipulated in the contract. The maneuver to issue a government decree to redress these lapses is viewed skeptically by LIMS, cautioning against potential cover-ups for further breaches. Notably, LIMS critiques the ineffectiveness of the handover committee within the ministry, highlighting systemic deficiencies and mistakes.

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  • Electricity In Lebanon Warns Of Power Cuts In Case Of Non-Payment… Is There A Possibility Of Non-Implementation? March 20, 2024: VDL News, Radio Interview AR
  • Expatriates Ready To Finance Electricity Projects: Thinking Outside The Box, March 26, 2024: Al Modon, Article AR