Economy

Pricing of Generators for June

Pricing of Generators for June

The Ministry of Energy and Water announced in a statement issued by its media office that the fair price for private electrical generator tariffs for the month of June is as follows:

- **13,556 L.L. per kilowatt hour** for subscribers with meters in cities or densely populated areas or at altitudes below 700 meters:

- **5 Amperes**: 100,000 L.L. + monthly subscription x 13,556 L.L. per kilowatt hour.

- **10 Amperes**: 220,000 L.L. + monthly subscription x 13,556 L.L. per kilowatt hour.

- **14,911 L.L. per kilowatt hour** for subscribers with meters in villages or remote areas or at altitudes above 700 meters:

- **5 Amperes**: 100,000 L.L. (fixed) + monthly subscription x 14,911 L.L. per kilowatt hour.

- **10 Amperes**: 220,000 L.L. (fixed) + monthly subscription x 14,911 L.L. per kilowatt hour.

*An additional 120,000 L.L. will be added to the fixed part of the meter fee for each additional 5 Amperes.* This tariff is based on an average price of a 20-liter diesel barrel in June, which is 695,643 L.L., after accounting for all expenses, benefits, and costs associated with the generators, along with a reasonable profit margin for their owners. The costs to distribute the barrel from the fuel station to the generator were considered, as well as the primary components such as costs for oils, filters, and the depreciation of the generator. The average monthly exchange rate of the dollar in the parallel market is noted to be 28,621 L.L.

This pricing was issued based on the pricing guidelines approved by the Ministry of Energy since October 14, 2010, and in accordance with Cabinet Resolution No. 2 issued on December 14, 2011, concerning the necessary measures to regulate private generator pricing. Furthermore, in line with the joint application mechanism between the ministries (Energy, Interior, and Economy) announced on December 20, 2011, which defined the responsibility of the Ministry of Energy and Water to circulate the pricing of private generators based on diesel prices at the end of each month.

The Ministry of Energy and Water urges generator owners to comply with the Ministry of Economy and Trade's decision mandating the installation of meters. A documented study on this matter will be conducted in the near future to update the established equation to better align with fluctuations in exchange rates and the economic and social conditions of citizens, while considering the requirements of private generator owners.

Additionally, the Ministry of Energy and Water has sent letters to the Ministries of Interior and Economy regarding the pricing for June 2022 for appropriate actions according to the joint control mechanism.

Regarding elevators and shared sections connected with three-phase power, the generator owner should calculate the fixed part of the tariff based on the single-phase capacity. For example, if the subscription for the elevator and shared sections involves a three-phase breaker of 3x15 Amperes, the fixed part will be calculated based on 15 Amperes, not 45 Amperes, which results in 340,000 L.L., not 1,060,000 L.L.

It is worth mentioning that the Ministry of Energy and Water will attach a detailed pricing structure table and will also publish this table on the official website: www.energyandwater.gov.lb.

Our readers are reading too