EDL billing rate will remain based on 'Sayrafa rate plus 20 percent'

After the suspension of the Sayrafa exchange platform, will it remain the primary reference for pricing in electricity bills, plus 20 percent? Or will the new tariff be based on the fixed market rate of 89,500 Lebanese pounds, which has been in place for months? And will electricity bills start to be invoiced in dollars?

This article was initially published in, translated from, the Lebanese newspaper Al Joumhouria.

Informed sources within the Electricité du Liban (EDL) revealed to Al-Joumhouria that the electricity billing rate will continue to be based on the Sayrafa platform's US dollar rate (despite its cessation), using the rate that was in effect on July 31, 2023, which was 85,500 Lebanese pounds per dollar, plus 20 percent.

This is based on the ministerial committee's decision, which stipulates that pricing should be based on the Sayrafa rate plus 20 percent for the first six months of the current year until the end of June.

The sources then revealed that it is possible to price electricity bills in dollars and leave the choice of payment currency to the citizen, whether in Lebanese pounds or dollars, especially after the issuance of a ruling by the Legislation and Consultation Authority that allows for this.

However, if adopted, this approach will apply to bills issued from July or June onwards, not before that.

Furthermore, the sources confirmed that EDL is preparing the mechanism for pricing in dollars, and the model to be followed so far will be the Sayrafa rate plus 20 percent for those who wish to pay in Lebanese pounds and the market dollar rate for those who prefer to pay in dollars, unless the Central Bank of Lebanon decides otherwise, i.e., a change in the billing calculation method. Therefore, EDL will be bound by the mechanism imposed by the Central Bank of Lebanon.

The same sources also mentioned that EDL is currently working on addressing the issue of fixed charges on electricity bills, expressing concern that a global increase in oil prices may decrease the expected difference due to the reduction of these charges.

According to what has been agreed upon in the ministerial committee, a 25 percent reduction is expected to be applied to fixed charges, which includes both the subscription fee and the qualification fee.

This will happen while maintaining the subsidized rate for the first part, which is 10 US cents per kilowatt-hour for the first 100 kilowatt-hours of consumption, and reducing the rate for the second part to 26 US cents per kilowatt-hour for consumption exceeding 100 kilowatt-hours.

Is darkness postponed?

In the meantime, sources have confirmed that there is no imminent risk of a complete blackout in Lebanon during October. This assurance comes after the Ministry of Energy's prior warning.

Following the return of the fuel ship anchored off the Lebanese coast, EDL took measures and actions to extend the use of available stock for as long as possible. These measures include reducing the Deir Ammar power plant load and reprogramming the stock distribution.

As a result, it can be said that the power supply in October will remain as it is today, which amounts to 6 hours in administrative Beirut and 4 hours in some regions.

Additionally, there will be an increase of two additional hours starting from the beginning of the following month in areas within the limits of administrative Beirut and zones supplied by the facilities of the National Authority for the Litani River.

This also applies to all distribution outlets that supply public facilities in all Lebanese governorates, following confirmation that the outlets in these areas are free from any network encroachments.

However, the sources have warned that the current situation cannot continue as it is if the relevant authorities, such as the Finance Ministry and the Central Bank of Lebanon, do not take action to open credits for Iraqi oil and initiate the tender process under public procurement law to secure the import of Iraqi oil before the end of October.

This is the deadline for the expiration of the contract with Iraq, and it should be noted that the Lebanese government and the Iraqi side have previously agreed on the contract.

Moreover, the sources added, "If the Iraqi oil ships do not arrive during November and December, we will undoubtedly face a problem in power supply again, starting from mid-November."