Lebanon

Electricity "Steals" from the Lives of Lebanese People and Makes Them Pay "From Their Own Pockets"!

Electricity

In just 47 seconds, the "#OurRightToLiveWithLight" campaign managed to break one of the most dangerous assumptions imposed on the Lebanese people for 47 years: the "tame" acceptance of darkness. The campaign, launched by the Lebanese Oil and Gas Initiative (LOGI), simply depicted a very brief scene of a terrified father screaming for help to avoid losing his child, surrounded in a hospital bed by turned-off life-support machines due to a power outage. It concluded that these painful moments of helplessness have long been the reality in Lebanon, where the regular daily power cuts weaken life itself.

The Right to Electricity

The fundamental right to access electricity has become a luxury, which is unacceptable, according to Carol Ayat, a board member of the Lebanese Oil and Gas Initiative (LOGI) and an energy project financing expert. To reclaim the right to light through clear and future energy sources, Ayat called for signing the petition (available at the following link: https://therighttopower.com) that allows full transparency access to parliamentary discussions in the electricity sector and their updates. She urged pressure on lawmakers to expedite the approval of two proposed laws submitted by the government regarding the expansion of renewable energy production and improved energy efficiency. The two proposed laws are:

- The "Renewable and Distributed Energy Production Law," which establishes frameworks to promote clean energy production and allows buying and selling renewable energy through direct purchase agreements, enabling Lebanon to achieve its commitment of 30% renewable electricity by 2030.

- The Energy Efficiency Law, which aims to significantly improve energy management, especially as "the cleanest energy is that which is not consumed," according to Ayat.

Bad Intentions

The components of a "24/7 electricity" "recipe" have been mixed in a "blender" of solutions for decades; however, they have not, and will not, turn into a final "dish" due to the absence of political will. "This political will has remained suspended for years, relying on temporary and costly solutions and narrow interests, which bring enormous wealth to those who manage energy," said Diana Al-Qaisi, a member of the advisory council of the Lebanese Oil and Gas Initiative. "The short-term unsustainable solutions previously adopted, and which are currently being pushed to continue, such as power ships, serve the private interests of some at the expense of public benefit. This persistent trend in the energy sector over the years has led to the reluctance of all countries to assist Lebanon, despite the depth and seriousness of the problems we have reached."

What is disheartening is that plans and solutions are ready, information is clear, and numbers are evident, with no obstacles other than narrow interests. When personal benefits are set aside and serious execution begins, short-term assistance will resume, and the problem can be completely resolved in the future. However, if stubbornness continues and there is a lack of commitment to reforms—including appointing a regulatory authority for the energy sector, reversing vertical management in the sector, reducing waste, adjusting tariffs, improving collections, and removing violations on the grid—the situation will worsen, according to Al-Qaisi. "Lebanon will not receive the promised Egyptian gas or Jordanian electricity. The conditions of donor countries and the World Bank are clear regarding linking aid to achieving the required reforms."

Benefits of Reform

Moreover, achieving reforms in the electricity sector and entering a program with the International Monetary Fund will attract "investments worth $5 billion" to Lebanon, according to Carol Ayat. "These investments will enter into public-private partnership projects and will contribute, in addition to enhancing the presence of companies and ensuring economic growth, to creating job opportunities and mitigating the spread of unemployment."

The priority today, therefore, is to commence execution, "even if it starts from the latest plan of the Ministry of Energy," according to Ayat. "Although some improvements could be made, implementing it as is remains vastly better than neglecting it entirely and placing it in drawers like previous plans."

The Dilemma of Adjusting Tariffs

One of the primary obstacles delaying the implementation of the approved plan is the inability to adjust tariffs before improving supply. On this basis, "supply rates will remain very minimal, sometimes approaching zero on most days in many areas," according to Ayat. "The citizen will still be forced to purchase electricity from private generators at a price exceeding half a cent and reaching up to a dollar." The lowest generator tariff this month reached 18,000 L.L. plus $10 (286,000 L.L.) for a 5-amp subscription. Accordingly, a family pays a minimum of about 1.2 million L.L. for consumption not exceeding 50 kilowatts per month. This reality, tied to an unreal electricity tariff established since 1994 at an average of 130 L.L. per kilowatt—based on a $24 price per barrel of oil at that time—"cost the country $47 billion in losses," asserts Ayat.

"Despite all the fluctuations in global oil prices recently approaching $140, the tariff remained unchanged. Every time the losses increased and grew even further." According to Ayat, what is urgently required today is to achieve financial balance through tariff adjustments, while concurrently working to reduce waste—especially given the rising collection costs compared to declining returns and increasing violations and thefts. Without these two swift measures, "things will worsen, and no sustainable solution will succeed."

Simultaneous Adoption of Solutions

The proposed adjustment of tariffs faces fierce opposition due to the burden it places on citizens while failing to provide sufficient electricity in place of generators quickly. It also contends with exceeding a waste rate of 50%. Thus, increasing production with these high waste rates will exacerbate the problem. Therefore, it is essential to work in parallel on reducing waste, exploring decentralization in distribution, increasing production from clean energy sources, and encouraging the use of cheaper and less environmentally harmful gas in thermal plants," according to Ayat. Notably, the new electricity tariff, estimated at 28 cents, will be linked to global oil prices, rising with any increase in oil prices. Conversely, "the cost of production from clean energy sources has dropped to 5.7 cents for solar energy."

The 47-second video that LOGI based its campaign on aimed to create shock in public opinion, as the absence of electricity has become a norm. "Many could not finish watching it, and some media outlets rejected it due to its harshness," according to Amer Mardam Bek, the executive director of the Lebanese Oil and Gas Initiative. It is important to note that this harsh reality has robbed Lebanese people of 47 years and cost them $47 billion of their deposits, money, and livelihoods. Enough of trading in electricity, which is a human and social right before being an economic necessity.

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