BEIRUT: Nearly 25 years after the Civil War ended, the state-owned electricity company, Electricite du Liban, is still unable to keep the lights on around the clock, despite promises by successive governments to provide a constant supply.
As a result, having power for 24 hours a day – without the help of generators – remains a pipedream in Lebanon, a country that suffers from chronic power outages, especially now that the government is confronting hundreds of striking contract workers who are blocking entrances to EDL offices across the country.
In certain mountain villages, however, residents are oblivious to all that ruckuss, thanks to a winning collaboration between private entrepreneurs and municipalities.
“We in Barouk don’t feel the lack of electricity,” said Toufic Abou Alwan, a resident of the Chouf mountain town southeast of Beirut. “When there is a power outage, we don’t even notice it because it takes [just] a few seconds to have a normal electricity [supply] again.”
A few years back, most residents and institutions in Barouk – as in most of Lebanon – had private generators to secure a continuous supply of electricity, as EDL power was sometimes cut off for several days in a row. Those who could not afford such an expensive luxury had to get used to living without electricity just as their ancestors did before them.
“We were using gas lamps again, storing long-life food in cool places and washing our clothes by hand,” said Abu Maarouf, a local farmer and one of those residents who did not have the means to buy his own generator or subscribe to an expensive private provider.
But this all changed a couple of years ago, when the municipality made agreements with private entrepreneurs “to ensure the provision of that service [electricity] to the people without interruptions,” Barouk Mayor Elie Nakhle explained.
Thanks to four power generating stations, connected to houses via a brand new network of modern cables, the town has since been powered without interruption.
The cables are covered in aluminum to prevent people from stealing electricity illicitly and to protect them from bad weather.
Unusual for Lebanon, special meters were also installed next to their rarely used EDL counterparts to record consumption.
“You pay as much as you consume [of the private electricity]. You don’t have to pay lump sums which are imposed regardless of the quantity consumed,” Abu Maarouf said. “At least this is fair and all people, rich and poor, alike, can afford it.”
The giant generators are also used to keep street lighting on at night.
According to municipality officials, almost all of Barouk now relies on electricity supplies from private businesses, with monthly bills that are markedly less expensive than those from EDL.
The supply is so reliable that residents are trying to get rid of their private generators, which they have not used in years.
“We don’t know what to do with our [own] generators anymore,” Abou Alwan said. “Mine has been rotting in the garage for a while now with no potential buyer in sight.”
In Baysour, a village located in the Aley district east of the capital, locals are benefiting from a similar success story.
“We have two entrepreneurs providing for Baysour’s power needs, a [setup] that prevents monopoly in the business and allows positive competition,” Mayor Walid Aridi said.
He explained that the municipality did not interfere in the operation or management of the private power generating systems, stressing that what mattered was that the “people are not deprived of this essential service and are neither being abused nor exploited.”
“The entrepreneurs have their own collectors and maintenance teams. At the end of each month, they read the meters and prepare detailed billings which are later collected according to a schedule,” he explained. “Also the quick maintenance that is provided by the private businesses prevents long interruptions of power supply. It is a system that is working perfectly.”
“All classes of people can now afford to have electricity during long power outages by EDL. You have bills as low as LL30,000 and others which go over LL300,000, because now you can consume as much as you can afford,” Aridi added.
Brushing aside allegations that the sale of electricity by private entrepreneurs was an “illegal” activity, Aridi pointed to ministry-issued and monthly updated indices of diesel prices and related costs that private generator operators can charge.
“By doing so, the government has in fact indirectly legalized individual enterprises,” Aridi said.
He argued that because the government was incapable of fully providing such a vital service, it had unofficially sought the assistance of the private sector to compensate for the shortfall.
Lebanon’s electricity sector, already in bad shape after the destructive 1975-90 Civil War, was further seriously damaged during the 2006 war with Israel.
Today, Lebanon produces barely 65 percent of its power needs and relies on imported energy in the form of Turkish power boats.
The electricity supply system is controlled by EDL, which suffers from poor financial circumstances, a shortage in human resources and a heavy reliance on government budget subsidies for operations, especially in the wake of rising fuel prices.
A combination of a low proportion of collected bills, unbilled consumption and old power plants with aging equipment and inefficient power production have made the power sector unsustainable and a main contributor to the government’s budget deficit.
The pressure on the already overstrained grid was further aggravated by the presence of more than 1.2 million war-displaced Syrians who have sought refuge in Lebanon over the past three years.
However, not everyone agrees with Aridi’s assessment.
Ziad Hayek, secretary-general of the Higher Council on Privatization, opposes the existence of private businesses selling electricity, saying it was a lamentable consequence of the government’s failure to exercise its authority and implement the law.
“It is a free-for-all situation ... it is simply chaotic,” Hayek said.
But he also admitted that he knew there was very little other choice: “Having municipalities generate and distribute private electricity is unfortunate though understandable. At the end of the day, the municipalities want to cater for their people and secure that vital service.”
Hayek argued that the energy sector should be reformed before private investments are encouraged, referring to the energy privatization law 462 of 2002, which calls for corporatizing EDL and establishing an Electricity Regulatory Authority that would be tasked with setting the criteria for power production, issuing official licenses and overseeing production by the private sector.
“Until this regulatory body is put in place no licenses can be issued. Only then can the private sector generate or produce power,” Hayek said. “But they should sell it to the government according to regulations, not to the consumers directly.”