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Lebanon’s struggling economy faces yet another challenge as the controversy surrounding electricity tariffs deepens. The focal point of this crisis is the increase in the rate of the Sayrafa platform (85,500 LBP per dollar) by 20% when issuing electricity bills in Lebanese pounds. In an exclusive interview with Ghassan Baydoun, former Director General of the Ministry of Energy in Lebanon, we explore the reason this increase is deemed illegal and how it is causing widespread confusion among the Lebanese population.
As Lebanon’s economic woes persist, citizens find themselves grappling with the harsh reality of soaring electricity bills. The local currency’s precipitous fall has led to mounting inflation, making basic utilities increasingly unaffordable for ordinary people.
The crux of the issue lies in the controversial 20% increase in Sayrafa rate imposed by Électricité du Liban (EDL), the national electricity provider, when settling electricity bills in Lebanese Pounds.
Noting that since November 1, 2022, EDL’s new pricing has become effective. The price per kilowatt-hour (kWh) is 10 cents for the first 100 kWh. The price then increases to 27 cents per kWh if consumption exceeds 100 kWh. The subscription cost is 21 cents per amp. The basic subscription is 4.3 dollars and 8.6 dollars.
Ghassan Baydoun, a prominent figure with intimate knowledge of Lebanon’s energy sector, weighs in on this matter.
Baydoun asserts that “the 20% increase in Sayrafa fees for electricity bills paid in LBP is not only unjustifiable but also illegal.” “The 20% increase came as a response from the Central Bank of Lebanon, stipulating that EDL must add this commission when converting payments from LBP to dollars,” Baydoun elucidates.
The core issue at hand is the legality of such a fee, which Baydoun vehemently disputes. He emphasizes, “The 20% increase is not justified, and the previous agreement was canceled.”
However, it is important to note that EDL claims that the 20% it is imposing on the rate of the Sayrafa platform is due to the fluctuation of fuel prices and the dollar exchange rate.
Moreover, the confusion stemming from this additional charge is palpable among the citizens. “They are creating room for confusion, leakage, loss, and many problems. All of this is at whose expense? The only one guaranteed to bear the burden is the citizen,” Baydoun notes
In conclusion, the controversy surrounding the increase in the rate of the Sayrafa platform (85,500 LBP per dollar) by 20% when issuing electricity bills in LBP, imposed by EDL, has cast a shadow of uncertainty over Lebanon’s already dire economic situation. Ghassan Baydoun’s insights underscore the illegality of this charge and the widespread confusion it has sown, leaving the Lebanese people to bear the brunt of yet another financial burden.
