Electricité du Liban (EDL) has announced a reduction in the electricity tariffs for the months of January and February. The decision came as a result of discussions and directives from Caretaker Prime Minister Najib Mikati, Caretaker Minister of Energy and Water Walid Fayad, and Caretaker Minister of Finance Youssef Khalil. This decision was reached as a result of the decrease in petroleum prices, the decline in the USD/LBP exchange rate, and the stability of the exchange rate on the Sayrafa platform.
Under the new tariff, fixed fees will be discounted by 25%, including subscription fees and rehabilitation fees. The subsidized rate for the first segment, which covers the first 100 kWh of consumption, will remain at 10 US cents per kWh. However, the rate for the second segment, applicable to consumption exceeding 100 kWh, will be reduced to 26 US cents per kWh.
EDL will comply with the Central Bank’s decision regarding the issue of the exchange rate, which is out of EDL’s control. Accordingly, the institution will follow the exchange rate of USD/LBP on the Sayrafa platform, plus 20%.
EDL’s board of directors will correspond with the Prime Minister, the Minister of Finance, and the Minister of Energy and Water to review the governance of the Central Bank of Lebanon concerning the exchange rate of the US dollar in monthly bills from March 2023 onwards. They seek approval to adopt the Sayrafa platform’s exchange rate only, without the additional 20% set by the Central Bank.
To ensure transparency and efficiency, a study will be conducted to analyze global price fluctuations of petroleum, fuel quantities, the USD/LBP exchange rate, and the conversion of electricity bill revenues from Lebanese pounds to US dollars by the Central Bank. The findings of this study will be used to review the mechanism for calculating the electricity tariff in bills issued after June 2023.
EDL stresses that the new tariff approval was part of a national emergency plan for the electricity sector in Lebanon, initiated in August 2022. The plan aims to revive the sector in coordination with international organizations and donor agencies. The institution urges citizens to support the public interest by paying their electricity bills and not engaging in illegal practices such as tampering with the electrical network.
