EDL needs dollars to cover expenses, BDL has yet to clarify exchange rate

The Electricity Company of Lebanon (EDL) is urging the Central Bank to inform them of the exchange rate for the US dollar, as they need it to purchase fuel for power plants, conduct maintenance, and provide health insurance for their employees. The only expenses remaining in Lebanese pounds are pensions and salaries.

Sources familiar with the matter said that if the exchange rate of the US dollar increases, it will pose significant risks to EDL's emergency plan, which has been successful so far in increasing power supply, albeit limited, and collecting fees while removing encroachments.

The sources explained that the difference between the Sayrafa exchange rate plus 20% used to calculate the bill, 52,320 Lebanese pounds, and the new Sayrafa exchange rate, 73,100 Lebanese pounds, is around 20,000 Lebanese pounds. Therefore, according to what exchange rate will the Central Bank sell the dollar to EDL, and what is the potential loss?

The sources pointed out that the law prohibits EDL from pricing its services in dollars, so the Central Bank is required to inform them quickly of the exchange rate at which they will sell the dollar to EDL.

It has been suggested within the company that if the Central Bank delays its response, measures may need to be taken to ensure the emergency plan's continuity.

The sources rejected blaming EDL for the negative consequences of the exchange rate fluctuations. They confirmed that the new fees began in February according to the required timing.

The sources reiterated the necessity for the Central Bank to maintain the electricity dollar exchange rate for two months to avoid losses.

Lebanon is facing an economic crisis, and EDL has struggled to provide uninterrupted power to its customers due to a fuel shortage and a lack of maintenance.