New paying options in US dollar or Lebanese lira: The decision that could save you 'big' on electricity bills

A question for the public: Did you know that you can soon pay your electricity bill in US dollars or Lebanese lira?

Indeed, paying the electricity bill in US dollars is more convenient and cost-effective. Why?

Let us explain.

Before this new decision, if you did not have Lebanese lira at home and the collector suddenly came to collect your bill, you had to go to the currency exchange to get US dollars to pay because the collector did not accept payment in US dollars.

So, when you went to the currency exchange, you lost money on every dollar. For example, if the black market exchange rate for the US dollar was 89,000 Lebanese lira, the teller would buy your dollars at 88,000 Lebanese lira.

Paying in dollars to the collector is more cost-effective because, after a circular from the Central Bank of Lebanon, the electricity company was required to invoice its bills at the Sayrafa rate plus 20 percent, and the "electricity dollar" became 102,600 Lebanese lira. In contrast, the black market exchange rate was 89,000 Lebanese lira. 

So, if your bill were $20, you would pay 2,052,000 Lebanese lira.

However, if you decided to pay the same bill in dollars and bought the $20 from the black market at a rate of 89,500 Lebanese lira, these twenty dollars would cost you 1,790,000 Lebanese lira. This way, you saved 262,000 Lebanese lira just by paying in dollars.

In addition, the decision to allow payment in dollars will help the electricity company cover the costs of buying fuel for power plants, maintaining the power grid, and even paying suppliers and contractors without waiting for the Central Bank of Lebanon to convert its billions from Lebanese lira to "fresh dollars."

The decision to allow citizens to pay their electricity bills in dollars or Lebanese lira will be approved by the board of directors of Électricité du Liban after obtaining legal approval from the Committee of Legislation and Consultations at the Ministry of Justice. 

Practically, it is expected to be implemented with issuing invoices for June or July 2023 at the latest.