Electricity .. Lebanon's agonizing crisis

By Ayyoub Khaddaj BEIRUT, Jan 28 (KUNA) -- Electricity has long been a problem in Lebanon, consuming a large chunk of the budgets of the state and citizens alike, with blockouts extending for long hours in many parts of the Middle Eastern nation.
The electricity crisis surfaced early this year in addition to the lack-of-cash problem at the banks, indeed making the burden on the Lebanese citizens even heavier thus becoming one of major demands of protesters.
Electricity supply retreats to eight hours a day, forcing citizens to use power generators. This subjected them to be under mercy of the state, which demands electricity bills, and suppliers of generators.
Ministry of Energy had announced that quantity of fuel for power stations was sufficient up until end of February. It added that electricity supply in Beirut would be between 16-21 hours up until end of February and 8-10 hours in rest of the country.
Onwers of gas stations complained of insufficient amount of fuel, and liquidity of US Dollar.
Mark Ayyoub, an energy specialist at the American University in Beirut's Essa Fares Institute for General Policies and International Affairs, said electricity crisis would worsen because the government allocated USD one billion to provide electricity for nine months in 2020 providing current oil prices.
This, he added, would force the ministry of energy to cut electricity supply hours which would compel citizens to buy generators.
Speaking to KUNA, Ayyoub said the crisis would worsen when the government failed to provide necessary appropriations.
The government approved an electricity plan last year which was supposed to solve the crisis. This plan, said Ayyoub, was based on: building new stations and increase fees, removing illegal linkage to the power grid and improve collection of bills.
There was some improvement on illegal linkage and collection of bills, he said, but political disputes, which he did not mantion, derailed the establishment of power stations.
Electricity sector consumed around USD 36 billion between 1992 and 2017, or 45 percent of public debt and around 20 percent of total expenditure, he noted.
Reforming the electricity sector is a necessity in order to receive loans pledged by countries and international organizations when they met in Paris in 2018, said Ayyoub.
Jassem Ajaqa, an economist, said Lebanon was in dire need of financial reforms in order the address the deficit, the core of which was the electricity sector.
He told KUNA the government was spending USD 1-2 billion in electricity subsidies, which made up 25-30 percent of the deficit.
Ajaqa said power generators provided around 50 percent of overall electricity in 2019.
"This number can increase with the rising deficit and high oil prices, which will force the state to reduce oil import and thus cut electricity supply hours," he added. (end) ayb.bs