Lebanese Debate: Revealing the Truth Behind Electricité Du Liban’s Tariff Reduction

2023-06-16 04:20:27

“Lebanese Debate”

The citizen’s joy will not last long with what the Electricité Du Liban company announced to reduce the electric tariff for the bills of January and February of the year 2023. Apparently, this news is positive for the citizen who suffers from painful public bills that exceed his monthly wages, because following the imposition of the Electricity of Lebanon, a tariff on the price of Exchange platform + 20%, the decision comes to reduce the burden of electricity bills.

However, this opinion is not shared by the researcher and economics professor, Jassem Ajaka, who revealed to the “Lebanon Debate” the huge profits that the institution will illegally achieve from behind this “trap” that it set for the citizen under the guise of reducing the tariff, indicating that “the amount of financial profit It is similar to what the owners of the generators achieved, whom the government fought during the days of the Minister of Economy at the time, Raed Khoury.

Ajaka talks regarding several hidden and vague points in the corporation’s statement regarding the discount, explaining that the 25% discount on fixed fees came as a response to the increasing requests by citizens to get rid of the electricity meters of the Electricité du Liban, especially since many citizens now have energy. solar panels in addition to subscriptions to private generators.
Thus, the promises made by the Ministry of Energy and Water to increase feeding hours in exchange for raising the tariff have not been fulfilled, as Ajaka explains, who believes that the citizen now has two bills, one from the generator and the other from the “cut off” electricity!

In numbers, and regarding the size of the cost of producing a kilowatt-hour to the Electricity Corporation of Lebanon, Ajaka reveals that it amounts to 9.7 cents. Thus, keeping the price of the subsidized first part (the first 100 kilowatt-hours of consumption) at 10 cents per kilowatt-hour covers the cost, knowing that the number of homes that consume less than 100 kilowatt-hours per month is very few (the average is around 250).

Ajaka added that “the corporation reduced the price of kilowatt-hours for the second phase (i.e. monthly consumption exceeding 100 kilowatt-hours), by one cent from 27 cents per kilowatt-hour to 26 cents per kilowatt-hour, i.e. by 3.7%. Whereas in November of last year ( When the tariff was raised for the first time), the price of fuel was higher than it is now, as it decreased in May by 27% compared to November of last year, and therefore the price of a kilowatt-hour was supposed to be reduced to 19.71 cents. Which means The company’s profit on every kilowatt-hour is 10 cents! Even if we increase the “depreciation” of 2 cents on every kilowatt, the profit remains around 8 cents.

In this regard, Ajaka recalls the uproar that accompanied the campaign of the Ministry of Economy and Trade during the days of Minister Khoury once morest the owners of generators, and imposed on them the installation of meters and imposed a tariff that takes into account the real costs with a profit rate set by the ministry at 10%. However, it – i.e. the ministry – imposes profits of up to 200% on the citizen without telling him that!

The percentage of profit does not stop at these limits, according to Ajaka, who points out the importance of taking into account the above-mentioned increase of 20% on the price of an exchange platform, which makes the company’s profits far exceed the reported figures.

From this standpoint, Ajaka believes that it is necessary for the Ministry of Energy and Water and the Electricité du Liban to issue an explanatory statement to public opinion to clarify these points.

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