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Politics sabotage electricity plan, no increase in supply expected
News Bulletin Reports
30-12-2022 | 10:43
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Politics sabotage electricity plan, no increase in supply expected
Once again, politics are sabotaging the power line and have prevented the emergency electricity plan from launching to secure between 8 to 10 hours of supply.
It has been confirmed that a consensus was agreed upon between the caretaker prime minister, Najib Mikati, and Parliament Speaker Nabih Berri. The two decided that approving a treasury advance of $62 million to guarantee the payment of 66,000 tons of gas oil requires a cabinet meeting.
Presidents Mikati and Berri agreed on the need to stick to principles in this matter, which is approving the advance in a cabinet meeting rather than through exceptional approval.
Sources added that the two presidents wanted to avoid granting Head of the Free Patriotic Movement (FPM) Gebran Bassil a free success at a time when he and his movement continued to attack them.
In this context, the General Directorate of Petroleum was also informed that the renewal of the contract with Iraq for the supply of fuel for Électricité du Liban (EDL) also needs to be approved by the Council of Ministers.
From all of the above, the issue of financing electricity is being used as a pressure card to hold a session of the Council of Ministers, whose agenda includes other items.
Will FPM abandon its opposition to holding sessions under the pretext of securing electricity? And will it accept, if approved, that the agenda includes items other than electricity?
A meeting may take place between Energy Minister Walid Fayyad and Speaker Berri, noting that the Energy Minister had pledged that the duration of the treasury advance is one year.
According to the Energy Minister's sources, he had pledged to pay back the advance on the condition that there would be another advance or the electricity supply would stop.
The Energy Minister stressed that the request for treasury advances is for a certain period, pending that EDL reaches financial solvency to finance itself due to raising the feeding hours between 8 and 10 hours and raising the tariff. Thus treasury advances are no longer wasted.
Waiting for the outcome of matters, the General Directorate of Oil delayed the arrival of a third ship loaded with fuel oil to Lebanese waters so that the delay fines paid on two vessels anchored in Lebanese waters do not increase.
Sources in the General Directorate of Oil said, "We brought the ships after a transparent tender and with the knowledge of all officials, and after the letter of guarantees was also discussed with the Banque du Liban (BDL)."
According to these sources, the Directorate of Oil wants to avoid money from BDL. Still, it needs a letter of guarantee from the central bank that it will pay for fuel if EDL cannot pay after six months.
These sources indicated that the Directorate and EDL do not have funds to pay the fines that accumulate due to not unloading the two gas and oil ships.
Therefore, if the financing issue is not resolved, Lebanon may face a judicial confrontation with Vitol company, which will demand the payment of fines.
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