Economy

Private generator rates jump 60% in six months as diesel costs surge

Lebanon's Ministry of Energy and Water has set August electricity prices for private generators at 48,241 Lebanese pounds per kilowatt-hour, marking a 19% rise from July and a 60% increase since February.

A power station on the Lebanese coast

Lebanon's Ministry of Energy and Water has set August electricity prices for private generators at 48,241 Lebanese pounds per kilowatt-hour, marking a 19% rise from July and a 60% increase since February.

The ministry fixed the rate at approximately 0.54 dollars using the official exchange rate of 89,700 pounds to the dollar. The August price represents the highest level recorded since April, ending three consecutive months of decline in May, June and July.

A household with 5-ampere capacity consuming 250 kilowatt-hours monthly will pay approximately 12.4 million pounds, including a fixed subscription fee of 385,000 pounds. Consumption of 400 kilowatt-hours raises the bill to about 19.7 million pounds, while 600 kilowatt-hours reaches over 29.3 million pounds.

The ministry did not change fixed monthly fees. A 5-ampere subscription remains at 385,000 pounds and a 10-ampere subscription at 685,000 pounds, with an additional 300,000 pounds charged per extra 5-ampere increment. Remote areas or those with low population density pay 10% more.

The rate increase reflects rising diesel costs. The ministry used a reference price of approximately 2,415,495 pounds per barrel in calculating August's tariff, compared to about 22.2 dollars in July, a 22% increase. The reference price for a ton of diesel rose from 1,183.25 dollars at the end of July to 1,270.04 dollars at the end of August, a 7.3% increase.

The timing coincides with a sharp decline in output from Lebanon's state electricity company in August due to delayed fuel shipments. With lower official grid supply, rising temperatures and longer air-conditioning use, citizens consumed more generator electricity in a month when costs jumped significantly.

Beyond the official rate, generator owners' compliance with meters and the set tariff remains a challenge. Some subscribers pay flat fees or additional charges not listed in the ministry's schedule, making their actual bills higher than official figures.