Lebanon’s State Electricity Company: A Pawn for Political Corruption

Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)
Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)
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Lebanon’s State Electricity Company: A Pawn for Political Corruption

Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)
Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)

All year long, electricity is at the heart of the Lebanese people’s concerns. It is also at the heart of the country’s staggering $80 billion public deficit with the sector costing it $36 billion a year.

This reality can be blamed on political corruption that has for years plagued the sector.

Former Energy Minister Mohammed Abdul Hamid Baydoun told Asharq Al-Awsat: “It is part of political bribery.”

Politicians always set their sights on the Energy Ministry whenever a new government is being formed, heedless of the label of corruption that will follow them.

Lebanon’s electricity crisis began during the country’s 1975-90 civil war, which destroyed many of its power plants. The people had to contend with gas lanterns to compensate for their lack of power. Now, 28 years later, not much as has changed and the country still suffers from frequent power cuts. There appears to be no light at the end of the tunnel because politicians would rather fill their own pockets than tackle years of incompetence in such a vital sector.

Experts agree that the solution lies in modernizing laws linked to Electricite du Liban (EDL), the state-owned company that runs the sector. The current laws in place are outdated and a lack of coordination between the concerned ministries has rendered work in the sector inefficient and ineffective.

Baydoun said: “The company cannot be fixed.”

“When I assumed the energy portfolio, I managed to draft the privatization law that never materialized,” he continued.

“Current EDL director Kamal Hayek has proven that he cannot limit the losses in the firm. The situation at EDL has not changed since he assumed his post in 2002,” he told Asharq Al-Awsat.

Despite this 15-year failure, nothing has been done to change it, he stressed.

Dr. Mohammed Basbous, a leading member of the Progressive Socialist Party, told Asharq Al-Awsat: “The energy sector is the greatest source of waste in the Lebanese economy.”

There are vacancies in 50 percent of EDL and only two representatives remaining in a seven-member board of directors, he stated. A law was issued in 2011 to fill these posts and, yet, seven years later, nothing has been done.

Moreover, six months were given in 2011 to the formation of a regulatory authority, which has not yet seen the light, Basbous added.

The extension of the term of current officials at EDL are therefore all illegal, he noted.

Furthermore, vacancies, he said, are being filled with unproductive employees. The absence of a regulatory authority is also limiting interaction between the energy minister and any potential cooperation partner to just these two sides, meaning talks between them are not being monitored and violations go unchecked.

Unimplemented plan

Baydoun said that when current caretaker Foreign Minister Jebral Bassil served as energy minister, “he concocted a theory that regulatory authorities infringe on the minister’s privileges.”

On the contrary, “regulatory authorities are formed to protect general sectors from political meddling, to ensure the rights of the consumer and to put in place set prices,” he continued. “Politics must not impose such prices.”

An expert at a firm specialized in modernizing the energy sector told Asharq Al-Awsat: “Technically, we have a plan, but it has not been implemented.”

Speaking on condition of anonymity, he added: “The plan calls for the formation of a regulatory authority and separating the sector’s three main divisions: power plants, networks and distribution and tax collection.”

“EDL was supposed to be restructured and its rules were supposed to be modernized. The private sector was supposed to renovate power plants and take part in the distribution and tax collection process, while the state would keep control of the grid,” he explained. “The plan, however, was hindered by corruption and political disputes.”

Lebanon’s two most important power plants are the Deir Ammar plant in the North and al-Zahrani in the South.

Baydoun said: “They were constructed to work on gas, not regular diesel fuel, before a mechanism to import gas was even put in place. They have been operating on the most expensive kind of diesel fuel since 1996. Just imagine the waste.”

“Ironically enough, efforts are underway to import liquid gas when Lebanon is lying on a natural gas field,” he remarked bitterly. The import of gas requires the establishment of dedicated ports.

“Why are we even building ports? Syria, Iraq and Iran all lie on gas fields. Pipes to import them already exist, while we are paying billions of dollars to import liquid gas?” he asked incredulously.

That is not all.

Basbous said: “The main flaw in the energy sector is the massive amounts of waste. Technical waste in companies usually lies at around 10 to 15 percent in Lebanon. Non-technical waste, including illegal connections and tampering with electricity meters, has led to the waste of 40 percent of generated power.”

During the April CEDRE donor conference, the director General Electric declared that his company was ready to build within six months power plants that can meet all of Lebanon’s energy needs, at a surplus even, and operate them at costs less than what the country was paying. His proposal fell on deaf ears, said Basbous.

As for EDL’s financial deficit, it can be blamed on several reasons, such as government decisions to exempt some regions from the power bill for security and social reasons. Other regions have been exempted for political reasons, while influential powers do not pay their power bill.

Moreover, electrical meters are not added to new consumers, meaning they will use more power without even paying for it. An aging power grid also compounds the problem. Current consumers are also using less power and relying on their own generators.

More waste

Between 2012 and 2013, waste exceeded 51 percent, said Basbous. This figure dropped to 35 percent when private companies took over tax collection. However, they became complacent when they realized that no one was supervising them and they were not being held accountable for their work.

The CEDRE conference demanded that Lebanon reduce its deficit by 5 percent in five years, meaning 1 percent each year, he added. Some have proposed that energy taxes be increased to tackle the deficit, which is the laziest solution because it requires the least effort to implement.

Raising taxes will not put an end to the waste because some people are not even paying their bills or stealing electricity from the grid. So whether taxes are raised or not, only paying consumers will be affected, he explained.

“Such an unjust decision will only increase non-technical waste,” he told Asharq Al-Awsat.

Furthermore, Baydoun criticized power-generating ships that were brought in in 2010 when Bassil was energy minister.

“Such a method is only used during times of wars or major crises. They are short-term solutions, not ones that last eight years and counting,” he said.

A third ship is reportedly coming to Lebanon. It was said that it will offer 200 megawatts for free for three months, while Lebanon will cover fuel costs, ship maintenance and employee salaries.



Is Iran Pushing Houthis Toward Military Action Against Washington?

Houthis continue mobilization, fundraising, and declare combat readiness (AP) 
Houthis continue mobilization, fundraising, and declare combat readiness (AP) 
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Is Iran Pushing Houthis Toward Military Action Against Washington?

Houthis continue mobilization, fundraising, and declare combat readiness (AP) 
Houthis continue mobilization, fundraising, and declare combat readiness (AP) 

As US military movements intensify in the Middle East and the possibility of strikes on Iran looms, Yemen’s Houthi group has continued military preparations, mobilizing fighters and establishing new weapons sites.

The Houthi mobilization comes at a time when the group is widely viewed as one of Iran’s most important regional arms for retaliation.

Although the Iran-backed group has not issued any official statement declaring its position on a potential US attack on Iran, its leaders have warned Washington against any military action and against bearing full responsibility for any escalation and its consequences.

They have hinted that any response would be handled in accordance with the group’s senior leadership's assessment, after evaluating developments and potential repercussions.

Despite these signals, some interpret the Houthis’ stance as an attempt to avoid drawing the attention of the current US administration, led by President Donald Trump, to the need for preemptive action in anticipation of a potential Houthi response.

The Trump administration previously launched a military campaign against the group in the spring of last year, inflicting heavy losses.

Islam al-Mansi, an Egyptian researcher specializing in Iranian affairs, said Iran may avoid burning all its cards unless absolutely necessary, particularly given US threats to raise the level of escalation should any Iranian military proxies intervene or take part in a confrontation.

Iran did not resort to using its military proxies during its confrontation with Israel or during a limited US strike last summer because it did not perceive an existential threat, al-Mansi said.

That calculation could change in the anticipated confrontation, potentially prompting Houthi intervention, including targeting US allies, interests, and military forces, he told Asharq Al-Awsat.

Al-Mansi added that although Iran previously offered, within a negotiating framework, to abandon its regional proxies, including the Houthis, this makes it more likely that Tehran would use them in retaliation, noting that Iran created these groups to defend its territory from afar.

Many intelligence reports suggest that Iran’s Revolutionary Guard has discussed with the Houthis the activation of alternative support arenas in a potential US-Iran confrontation, including the use of cells and weapons not previously deployed.

Visible readiness

In recent days, Chinese media outlets cited an unnamed Houthi military commander as saying the group had raised its alert level and carried out inspections of missile launch platforms in several areas across Yemen, including the strategically important Red Sea region.

In this context, Yemeni political researcher Salah Ali Salah said the Houthis would participate in defending Iran against any US attacks, citing the group’s media rhetoric accompanying mass rallies, which openly supports Iran’s right to defend itself.

While this rhetoric maintains some ambiguity regarding Iran, it repeatedly invokes the war in Gaza and renews Houthi pledges to resume military escalation in defense of the besieged enclave’s population, Salah told Asharq Al-Awsat.

He noted that Iran would not have shared advanced and sophisticated military technologies with the Houthis without a high degree of trust in their ability to use them in Iran’s interest.

In recent months, following Israeli strikes on the unrecognized Houthi government and several of its leaders, hardline Houthi figures demonstrating strong loyalty to Iran have become more prominent.

On the ground, the group has established new military sites and moved equipment and weapons to new locations along and near the coast, alongside the potential use of security cells beyond Yemen’s borders.

Salah said that if the threat of a military strike on Iran escalates, the Iranian response could take a more advanced form, potentially including efforts to close strategic waterways, placing the Bab al-Mandab Strait within the Houthis’ target range.

Many observers have expressed concern that the Houthis may have transferred fighters and intelligence cells outside Yemen over recent years to target US and Western interests in the region.

Open options

After a ceasefire was declared in Gaza, the Houthis lost one of their key justifications for mobilizing fighters and collecting funds. The group has since faced growing public anger over its practices and worsening humanitarian conditions, responding with media messaging aimed at convincing audiences that the battle is not over and that further rounds lie ahead.

Alongside weekly rallies in areas under their control in support of Gaza, the Houthis have carried out attacks on front lines with Yemen’s internationally recognized government, particularly in Taiz province.

Some military experts describe these incidents as probing attacks, while others see them as attempts to divert attention from other activities.

In this context, Walid al-Abara, head of the Yemen and Gulf Studies Center, said the Houthis entered a critical phase after the Gaza war ended, having lost one of the main justifications for their attacks on Red Sea shipping.

As a result, they may seek to manufacture new pretexts, including claims of sanctions imposed against them, to maintain media momentum and their regional role.

Al-Abara told Asharq Al-Awsat that the group has two other options. The first is redirecting its activity inward to strengthen its military and economic leverage, either to impose its conditions in any future settlement or to consolidate power.

The second is yielding to international and regional pressure and entering a negotiation track, particularly if sanctions intensify or its economic and military capacity declines.

According to an assessment by the Yemen and Gulf Studies Center, widespread protests in Iran are increasingly pressuring the regime’s ability to manage its regional influence at the same pace as before, without dismantling its network of proxies.

This reality is pushing Tehran toward a more cautious approach, governed by domestic priorities and cost-benefit calculations, while maintaining a minimum level of external influence without broad escalation.

Within this framework, al-Abara said Iran is likely to maintain a controlled continuity in its relationship with the Houthis through selective support that ensures the group remains effective.

However, an expansion of protests or a direct military strike on Iran could open the door to a deeper Houthi repositioning, including broader political and security concessions in exchange for regional guarantees.


The Gaza Ceasefire Began Months Ago. Here’s Why the Fighting Persists

Israeli soldiers and tanks stand in Gaza, as seen from the Israeli side of the Israel-Gaza border, in Israel, February 4, 2026. REUTERS/Amir Cohen
Israeli soldiers and tanks stand in Gaza, as seen from the Israeli side of the Israel-Gaza border, in Israel, February 4, 2026. REUTERS/Amir Cohen
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The Gaza Ceasefire Began Months Ago. Here’s Why the Fighting Persists

Israeli soldiers and tanks stand in Gaza, as seen from the Israeli side of the Israel-Gaza border, in Israel, February 4, 2026. REUTERS/Amir Cohen
Israeli soldiers and tanks stand in Gaza, as seen from the Israeli side of the Israel-Gaza border, in Israel, February 4, 2026. REUTERS/Amir Cohen

As the bodies of two dozen Palestinians killed in Israeli strikes arrived at hospitals in Gaza on Wednesday, the director of one asked a question that has echoed across the war-ravaged territory for months.

“Where is the ceasefire? Where are the mediators?” Shifa Hospital's Mohamed Abu Selmiya wrote on Facebook.

At least 556 Palestinians have been killed in Israeli strikes since a US-brokered truce came into effect in October, including 24 on Wednesday and 30 on Saturday, according to Gaza's Health Ministry. Four Israeli soldiers have been killed in Gaza in the same period, with more injured, including a soldier whom the military said was severely wounded when militants opened fire near the ceasefire line in northern Gaza overnight.

Other aspects of the agreement have stalled, including the deployment of an international security force, Hamas' disarmament and the start of Gaza's reconstruction. The opening of the Rafah border crossing between Gaza and Egypt raised hope of further progress, but fewer than 50 people were allowed to cross on Monday, The Associated Press said.

Hostages freed as other issues languish In October, after months of stalled negotiations, Israel and Hamas accepted a 20-point plan proposed by US President Donald Trump aimed at ending the war unleashed by Hamas' Oct. 7, 2023, attack into Israel.

At the time, Trump said it would lead to a “Strong, Durable, and Everlasting Peace."

Hamas freed all the living hostages it still held at the outset of the deal in exchange for thousands of Palestinian prisoners held by Israel and the remains of others.

But the larger issues the agreement sought to address, including the future governance of the strip, were met with reservations, and the US offered no firm timeline.

The return of the remains of hostages meanwhile stretched far beyond the 72-hour timeline outlined in the agreement. Israel recovered the body of the last hostage only last week, after accusing Hamas and other militant groups of violating the ceasefire by failing to return all of the bodies. The militants said they were unable to immediately locate all the remains because of the massive destruction caused by the war — a claim Israel rejected.

The ceasefire also called for an immediate influx of humanitarian aid, including equipment to clear rubble and rehabilitate infrastructure. The United Nations and humanitarian groups say aid deliveries to Gaza's 2 million Palestinians have fallen short due to customs clearance problems and other delays. COGAT, the Israeli military body overseeing aid to Gaza, has called the UN's claims “simply a lie.”

Ceasefire holds despite accusations

Violence has sharply declined since the ceasefire paused a war in which more than 71,800 Palestinians have been killed, according to the Gaza Health Ministry. The ministry is part of the Hamas-led government and maintains detailed records seen as generally reliable by UN agencies and independent experts.

Hamas-led militants killed some 1,200 people in the initial October 2023 attack and took around 250 hostage.

Both sides say the agreement is still in effect and use the word “ceasefire” in their communications. But Israel accuses Hamas fighters of operating beyond the truce line splitting Gaza in half, threatening its troops and occasionally opening fire, while Hamas accuses Israeli forces of gunfire and strikes on residential areas far from the line.

Palestinians have called on US and Arab mediators to get Israel to stop carrying out deadly strikes, which often kill civilians. Among those killed on Wednesday were five children, including two babies. Hamas, which accuses Israel of hundreds of violations, called it a “grave circumvention of the ceasefire agreement.”

In a joint statement on Sunday, eight Arab and Muslim countries condemned Israel’s actions since the agreement took effect and urged restraint from all sides “to preserve and sustain the ceasefire.”

Israel says it is responding to daily violations committed by Hamas and acting to protect its troops. “While Hamas’ actions undermine the ceasefire, Israel remains fully committed to upholding it,” the military said in a statement on Wednesday.

“One of the scenarios the (military) has to be ready for is Hamas is using a deception tactic like they did before October 7 and rearming and preparing for an attack when it’s comfortable for them,” said Lt. Col. Nadav Shoshani, a military spokesperson.

Some signs of progress

The return of the remains of the last hostage, the limited opening of the Rafah crossing, and the naming of a Palestinian committee to govern Gaza and oversee its reconstruction showed a willingness to advance the agreement despite the violence.

Last month, US envoy Steve Witkoff, who played a key role in brokering the truce, said it was time for “transitioning from ceasefire to demilitarization, technocratic governance, and reconstruction.”

That will require Israel and Hamas to grapple with major issues on which they have been sharply divided, including whether Israel will fully withdraw from Gaza and Hamas will lay down its arms.

Though political leaders are holding onto the term “ceasefire” and have yet to withdraw from the process, there is growing despair in Gaza.

On Saturday, Atallah Abu Hadaiyed heard explosions in Gaza City during his morning prayers and ran outside to find his cousins lying on the ground as flames curled around them.

“We don’t know if we’re at war or at peace,” he said from a displacement camp, as tarpaulin strips blew off the tent behind him.


What to Know as Iran and US Set for Nuclear Talks in Oman

The flags of USA and Iran are displayed in Muscat, Oman, 25 April 2025. EPA/ALI HAIDER
The flags of USA and Iran are displayed in Muscat, Oman, 25 April 2025. EPA/ALI HAIDER
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What to Know as Iran and US Set for Nuclear Talks in Oman

The flags of USA and Iran are displayed in Muscat, Oman, 25 April 2025. EPA/ALI HAIDER
The flags of USA and Iran are displayed in Muscat, Oman, 25 April 2025. EPA/ALI HAIDER

Iran and the United States will hold talks Friday in Oman, their latest over Tehran's nuclear program after Israel launched a 12-day war on the country in June and Iran launched a bloody crackdown on nationwide protests.

US President Donald Trump has kept up pressure on Iran, suggesting America could attack Iran over the killing of peaceful demonstrators or if Tehran launches mass executions over the protests. Meanwhile, Trump has pushed Iran's nuclear program back into the frame as well after the June war disrupted five rounds of talks held in Rome and Muscat, Oman, last year.

Trump began the diplomacy initially by writing a letter last year to Iran’s 86-year-old Supreme Leader Ali Khamenei to jump start these talks. Khamenei has warned Iran would respond to any attack with an attack of its own, particularly as the theocracy he commands reels following the protests.

Here’s what to know about Iran’s nuclear program and the tensions that have stalked relations between Tehran and Washington since the 1979 Iranian Revolution.

Trump writes letter to Khamenei Trump dispatched the letter to Khamenei on March 5, 2025, then gave a television interview the next day in which he acknowledged sending it. He said: “I’ve written them a letter saying, ‘I hope you’re going to negotiate because if we have to go in militarily, it’s going to be a terrible thing.’”

Since returning to the White House, the president has been pushing for talks while ratcheting up sanctions and suggesting a military strike by Israel or the US could target Iranian nuclear sites.

A previous letter from Trump during his first term drew an angry retort from the supreme leader.

But Trump’s letters to North Korean leader Kim Jong Un in his first term led to face-to-face meetings, though no deals to limit Pyongyang’s atomic bombs and a missile program capable of reaching the continental US.

Oman mediated previous talks

Oman, a sultanate on the eastern edge of the Arabian Peninsula, has mediated talks between Iranian Foreign Minister Abbas Araghchi and US Mideast envoy Steve Witkoff. The two men have met face to face after indirect talks, a rare occurrence due to the decades of tensions between the countries.

It hasn't been all smooth, however. Witkoff at one point made a television appearance in which he suggested 3.67% enrichment for Iran could be something the countries could agree on. But that’s exactly the terms set by the 2015 nuclear deal struck under former President Barack Obama, from which Trump unilaterally withdrew America. Witkoff, Trump and other American officials in the time since have maintained Iran can have no enrichment under any deal, something to which Tehran insists it won't agree.

Those negotiations ended, however, with Israel launching the war in June on Iran.

The 12-day war and nationwide protests Israel launched what became a 12-day war on Iran in June that included the US bombing Iranian nuclear sites. Iran later acknowledged in November that the attacks saw it halt all uranium enrichment in the country, though inspectors from the International Atomic Energy Agency have been unable to visit the bombed sites.

Iran soon experienced protests that began in late December over the collapse of the country's rial currency. Those demonstrations soon became nationwide, sparking Tehran to launch a bloody crackdown that killed thousands and saw tens of thousands detained by authorities.

Iran’s nuclear program worries the West Iran has insisted for decades that its nuclear program is peaceful. However, its officials increasingly threaten to pursue a nuclear weapon. Iran now enriches uranium to near weapons-grade levels of 60%, the only country in the world without a nuclear weapons program to do so.

Under the original 2015 nuclear deal, Iran was allowed to enrich uranium up to 3.67% purity and to maintain a uranium stockpile of 300 kilograms (661 pounds). The last report by the International Atomic Energy Agency on Iran’s program put its stockpile at some 9,870 kilograms (21,760 pounds), with a fraction of it enriched to 60%.

US intelligence agencies assess that Iran has yet to begin a weapons program, but has “undertaken activities that better position it to produce a nuclear device, if it chooses to do so.” Iranian officials have threatened to pursue the bomb.

Decades of tense relations between Iran and the US Iran was once one of the US’s top allies in the Mideast under Shah Mohammad Reza Pahlavi, who purchased American military weapons and allowed CIA technicians to run secret listening posts monitoring the neighboring Soviet Union. The CIA had fomented a 1953 coup that cemented the shah’s rule.

But in January 1979, the shah, fatally ill with cancer, fled Iran as mass demonstrations swelled against his rule. The Iranian Revolution followed, led by Grand Khomeini, and created Iran’s theocratic government.

Later that year, university students overran the US Embassy in Tehran, seeking the shah’s extradition and sparking the 444-day hostage crisis that saw diplomatic relations between Iran and the US severed.

The Iran-Iraq war of the 1980s saw the US back Saddam Hussein. The “Tanker War” during that conflict saw the US launch a one-day assault that crippled Iran at sea, while the US later shot down an Iranian commercial airliner that the US military said it mistook for a warplane.

Iran and the US have seesawed between enmity and grudging diplomacy in the years since, with relations peaking when Tehran made the 2015 nuclear deal with world powers. But Trump unilaterally withdrew America from the accord in 2018, sparking tensions in the Mideast that persist today.