Economy

Electricity company begins cutting power to public sector non-payers

Lebanon's electricity utility has started disconnecting power to public administrations, institutions and municipalities that failed to pay outstanding bills after a grace period expired.

A power station on the Lebanese coast

Lebanon's electricity utility has started disconnecting power to public administrations, institutions and municipalities that failed to pay outstanding bills after a grace period expired.

Electricity of Lebanon announced on Monday that it has begun implementing power cuts against public sector subscribers following a board decision issued on August 14, 2026. The utility said the cuts target administrations, institutions and municipalities that did not settle their outstanding payments and did not contact the company during a five-working-day grace period to request an extension or agree on a payment schedule.

The board granted the five-day window starting from August 17 to allow public entities, including water services and municipalities, to settle arrears. Government hospitals were exempted for humanitarian reasons.

The utility thanked public administrations, institutions and municipalities that responded to the board decision and paid their debts in full or in part, describing regular payment as essential to maintaining public services and ensuring electricity supply.

For entities that have paid only part of what they owe, the company gave a final deadline of ten days from the date of the statement to settle the remaining balance, warning of disconnection if they fail to do so.

All subscribers, whether public administrations or others, are urged to pay outstanding amounts either directly at Electricity of Lebanon counters or through transfers that the Finance Ministry arranges to the company's accounts, according to legally established procedures.

The board stressed that disconnection procedures apply uniformly to all entities concerned, and that the goal is not to cut power for its own sake but to collect public funds owed to the utility, ensure equal treatment among subscribers and maintain the company's capacity to produce and supply electricity.

The electricity company has cited mounting financial pressures for its tougher collection stance. Global gas oil prices have risen to nearly 1,500 dollars per ton, while the company had budgeted for 2026 at around 680 dollars. The utility has also pointed to low collection rates, high technical losses and accumulated debts from the public sector.

The utility said it is shifting from warnings to actual enforcement, while keeping channels open for delinquent entities to contact it and settle their accounts before disconnection measures are applied.