Lebanon's electricity authority starts cutting power over $258 million in unpaid bills

Report by Petra Abou Haidar, English adaptation by Yasmine Jaroudi

Lebanon's state-owned electricity provider has begun cutting power to public institutions, municipalities and government hospitals over years of unpaid bills totaling about $258 million. 

Electricité du Liban (EDL) and the Qadisha Electricity Company notified entities with outstanding debts on August 14 that they had five days to settle their accounts or face disconnection.

The deadline has now expired, and electricity cuts have begun against institutions that failed to pay or contact EDL to request additional time or agree on a repayment plan. 

Among the institutions that have paid all or part of their outstanding bills are the presidency, Parliament, the Prime Minister's Office, the Beirut and Mount Lebanon Water Establishment, Banque du Liban (BDL), the Lebanese University, the National Social Security Fund (NSSF), the Lebanese army and the Internal Security Forces (ISF).

Some institutions settled their bills in full, while others made partial payments.

However, only around $26 million, or roughly 10% of the $258 million in outstanding bills, has been collected so far, leaving about 90% of the total unpaid.

Institutions that paid part of their debts were given an additional 10 days by EDL to settle the remaining amounts. Otherwise, they too face power cuts. For institutions that have made no payments, the utility has begun enforcing disconnections.

The collection effort comes as EDL seeks additional funds to purchase fuel and keep its power plants operating. Recovering years of unpaid bills could provide the utility with much-needed cash for fuel purchases and electricity generation.

The issue has also taken on greater importance amid rising fuel costs linked to disruptions around the Strait of Hormuz. Lebanon's electricity tariff remains fixed at 10 cents per kilowatt-hour for the first 100 kilowatt-hours and 27 cents for consumption above that level, despite higher fuel costs.

EDL argues that every dollar collected can help finance fuel purchases, increase generation and potentially provide additional hours of electricity.

The campaign marks an unusual reversal for Lebanon, where state institutions have traditionally urged citizens to pay their electricity bills. The state-run utility is now demanding that the government itself settle its outstanding accounts.

The payments made by several major institutions could also serve as a test of whether other public entities can follow suit and settle their debts, potentially providing EDL with additional resources to improve power supply.