Lebanon’s electrical energy needs are estimated at 1400-1600 megawatts per year, varying seasonally. Surprisingly, the necessary production capacity is available - reaching 2300 megawatts per year - but actual production does not exceed 1350 megawatts, causing the rationing problem.

Actual vs Potential Production

The discrepancy between actual production and production potential can be attributed to these main factors:

• Incompatibility of the power plant network with the transmission & distribution network. Delays in establishing a transmission network from the Zahrani factory are an example.
• Increase in operation and repair costs due to ageing and disorders.
• Maintenance and operational misuse, such as the employment of low-quality fuel. In fact, new power plants designed to operate on gas are currently operating on fuel.
• Absence of a coherent maintenance plan for the power plants and the transmission & distribution networks.
• An as-yet unestablished control center called for in 1993, at the tim of renovation & development of the electricity sector.

Production and Purchase Cost Disparity

A combination of mismanagement, ageing of the power plants and non-transparency in purchase transactions increases purchase cost to LL 103-130 per kilowatt/hour. It is estimated that the use of gas in place of fuel, the organization of purchasing operations and power plant renovation will lead to a decrease cost of between LL 65-75 per kilowatt/hour.

In addition, reliance on hydraulic power can further decrease costs to approximately LL 40-50 per kilowatt/hour, not to mention a reduction in environmental pollution. These figures add up to a 61% potential decrease in purchase costs.

Electricite du Liban

EDL subscribers totalled approximately 1 million this year, the majority of whom subscribe through the low-tension network, 31,000 through the medium tension network and Solidere as the sole subscriber to the high tension network. Added to these are illegal subscribers numbering 250,000-300,000, a majority of whom deliberately remove their electricity meters. However, statistics from last October registered 21,000 paid demands for meters that have yet to be installed by EDL.

Revenues at EDL reached approximately LL 570 billion in 2000, constituting 50% of the value of production & distribution. These revenues do not even cover the cost of fuel, which totals LL 620 billion.

Taking a look at the figures in the box below, the Lebanese public can ask why it must endure even one hour of darkness and what possible solutions are available to remedy the situation. In short, a comprehensive solution must incorporate the following measures:

• Adopting transparency in allocating tenders
• Raising capital to develop existing plants
• Providing electricity meters to limit illegal access
• Improving bill payment and collection.

Vital Statistics (2001)