Generator Bills in Dollars This Month... How Are They Calculated?

The beginning of the month has arrived, bringing with it the bills for essential services that Lebanese citizens must pay in a dual manner, as their government provides them only partially. This forces them to resort to the private sector, which has become an alternative state, with no one questioning or holding accountable those who manage this state, especially in the electricity sector where the problems are severe. Due to the complete absence of power and soaring diesel prices, private generator subscription bills have reached millions and witness a monthly increase linked to the black market dollar rate. The Ministry of Energy and Water issued the private generators' pricing for September, determining "the fair price for electricity generated by private generators at 16,350 L.L. per kilowatt-hour," stating that the pricing was calculated on an exchange rate of 36,747 L.L. The owners of generators in many regions have informed subscribers that they will charge the bills according to the dollar rate in the black market, considering that they are selling kilowatts at a price lower than its actual cost due to sharp and rapid fluctuations in the exchange rate while the state pricing remains fixed in Lebanese pounds throughout the month. Regarding how the bills are calculated, Dany Kadichou, a member of the central committee of private generator owners, explains to "Al-Markazia" that "in the first five days of the month, the bills will be calculated according to the pricing in Lebanese pounds. However, for the remaining days of the month, the bill will be converted as is from pounds to dollars, meaning it will be calculated at the rate of 36,747 L.L. per dollar, and starting from the sixth of each month, it will be calculated according to the dollar in the black market." He confirms "the commitment of generators to the ministry's pricing, but this procedure comes to limit losses due to the instability of the dollar, which has risen above the rate on which the ministry based its pricing." When asked about the difficulties owners of generators perceive from subscribers in paying bills, he indicates that "so far, matters are manageable." As for securing diesel, Kadichou points out that "all prices are paid in dollars, and no trader adheres to the ministry's pricing in Lebanese pounds, and we often resort to the black market to obtain the material."