Starting May 2023, the calculation of electricity bills will be based on the official exchange rate determined by the Central Bank (BDL). As for the fuel ship expected to refuel the power plants and prevent a total blackout, it is supposed to dock in Lebanon before December 28.
As of May 2023, electricity bills will be calculated based on the official exchange rate determined by the BDL. The 20% surcharge meant to cover exchange rate fluctuations will be eliminated.
Caretaker Minister of Energy Walid Fayad explained to This Is Beirut that "the effects of the reduction will be felt as soon as Electricité du Liban (EDL) finishes calculating the bills for March and April 2023 and starts issuing bills from May 2023 onwards."
Why is there a delay in issuing and collecting bills? According to Fayad, it is because "the Central Bank did not provide the exchange rate to EDL on time."
It's worth noting that the government eliminated the 20% surcharge on the dollar exchange rate applied to electricity bills last November, stating that the exchange rate will be determined daily by the Central Bank through its platform. Bills can also be paid in Lebanese pounds or dollars, at the consumer's choice.
Fuel to Arrive Soon in Lebanon
Regarding the fuel ship expected to bring the power plants of Zahrani and Deir Ammar back to full operation, "It is expected to dock in Lebanon before December 28," Fayad assures. This will resolve the issue of drastic rationing that EDL has imposed since last week to avoid a total blackout.
Indeed, EDL announced last week the implementation of preventive measures until the receipt of the allocated diesel cargo for December 2023 to avoid a blackout.
In a statement, the public provider explained that it had to resort to preventive measures to extend the energy production period for citizens as much as possible and maintain a continuous electrical supply, 24 hours a day, for vital installations such as the airport, the port, water pumps and sewers, and avoid total darkness.
Since December 3, EDL has been forced to shut down production units in the Deir Ammar and Zahrani plants to preserve its fuel stock, thus reducing the total production capacity. These units will be back in operation once the first part of the cargo, scheduled for December, is unloaded, and the supply can be restored.
The delay in delivery is attributed to flaws in the public tender procedures conducted by the Ministry of Energy and the delay in opening the documentary credit by the BDL.
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