Lebanon’s public power utility, "Electricite du Liban" (EDL), began on Monday implementing measures to disconnect electricity supply to public administrations, public institutions, and municipalities that have failed to settle their financial dues.
This unprecedented move, in terms of its sweeping scope, targets ministries, official bodies, water authorities, and municipalities. It comes amid a severe financial crisis confronting the state utility due to the accumulation of public sector debts.
An initial list obtained by Asharq Al-Awsat revealed the names of institutions and administrations covered by the measures. They include the Council for Development and Reconstruction, Ministry of Public Works and Transport, Directorate General of Urban Planning, Directorate General of Education at the Ministry of Education and Higher Education, the Land Registry Directorates, and the Directorate General of Customs, in addition to subscriptions belonging to the Ministry of Telecommunications across various regions.
An informed source confirmed to Asharq Al-Awsat that "the decision to cut electricity to public institutions and administrations that fail to settle their dues does not aim to punish them or disrupt their work, but rather to enforce respect for the law and establish permanent financial regularity in paying electricity bills, thereby ensuring that EDL secures its rights and the continuity of its operations."
The source explained that "the primary objective is not the power disconnection itself, but rather to push public institutions to assume their financial responsibilities and settle their accumulated obligations on a regular basis, instead of continuing to pile up debts and resorting to temporary fixes whenever the crisis intensifies."
Rafik Hariri International Airport in Beirut successfully avoided a power disconnection after the Civil Aviation Authority reached an understanding with EDL. The agreement stipulates the payment of a portion of the accumulated dues and the rescheduling of the remaining amounts, alongside a commitment to settle incoming bills on a regular basis.
The accumulated dues owed by the Directorate General of Civil Aviation reached around $22.8 million, according to figures circulated regarding public sector debts.
These measures come in light of EDL’s need to collect regular revenues to finance fuel purchases and operate power plants. Its dues from public administrations and institutions reached around a quarter of a billion dollars.
The problem of arrears dates back to years of irregular electricity bill payments and has worsened with the tariff increase and the lack of sufficient credit availability among some administrations. This presents a dual challenge related to settling past debts and ensuring the payment of new consumption.
