Lebanon’s electricity crisis remains a significant drain on economic resources and a strain on the dignity of its people in 2025. Despite repeated promises of reform, energy ministers have failed to implement existing laws, choosing instead to maintain control over the government’s electricity company, Électricité du Liban (EDL). Going forward, any new minister must approach electricity as a sector to be reformed, not as a government monopoly to control.

LIMS argued that at the heart of this transition lies the appointment of an Electricity Regulatory Authority (ERA), which aims to liberalize pricing and create a competitive energy market. The proposed reform hinges on unbundling EDL by enforcing the long-overdue 2002 electricity law, which mandates splitting the entity into three independent units for production, transmission, and distribution. Under the proposed framework, EDL would retain only the most efficient power plants, while the remaining non-functional facilities would be privatized or permanently decommissioned. Such a move would allow private firms to enter the electricity production market, fostering competition and efficiency and reducing production costs.

The proposed restructuring would also allow private electricity distribution companies to purchase power in the wholesale energy market rates and re-sell it to consumers in retail. Unlike the current service provides who get paid for their effort, private distributors would have a direct financial incentive to ensure bill collection, to cover their costs. Opening up the distribution market to competition will also introduce a dynamic pricing model that closely reflects actual production costs. Consumers would benefit from lower and more transparent tariffs, while private distributors would be compelled to offer competitive rates to retain customers. This model, successfully implemented in various other countries, has been shown to improve both efficiency and service delivery. Municipalities would also be able to grant licenses to private energy companies within their jurisdiction. Such decentralization of energy generation and distribution would help mitigate chronic shortages and accelerate deployment.

The proposed liberalization of Lebanon’s electricity sector presents a rare opportunity to address one of the country’s most persistent crises. Establishing a well-functioning ERA, ensuring transparent competition, and encouraging investment could lay the groundwork for a more reliable and financially sustainable electricity supply.

• The Generator State: Cancer, Moving Fires, And “Beirut” Pays The Price. January 11, 2025: Nida Al Watan, Article AR
• A Roadmap For “Illuminated” Electricity With A Regulatory Body Opening The Sector To Competition, January 21, 2025: VDL, Video Interview AR  
• Tackling The Chronic Electricity Crisis: A Roadmap That Translates The Oath Speech, January 22, 2025: Al Joumhouria, Article AR
• For These Reasons, Everyone Is Running Away From “Energy”, January 26, 2025: Lebanon Debate, Article AR  
• Electricity Stations From “Dimit” To “Bater” Without Doors, January 27, 2025: Nida Al Watan, Article AR