SAWT BEIRUT INTERNATIONAL

| 4 May 2024, Saturday |

Appointing regulatory authority, is what Electricity sector needs now.

For three decades now, and the electricity sector is witnessing an unprecedented dramatic decline, despite the billions of dollars that have been wasted from state finances, due to the collapse of the productive factories on the one hand, and the disagreements of politicians on the other hand, and the Lebanese people, as usual, are the ones who pay the price, that has become beyond their capabilities, as  a result of harsh rationing and generator bills, bearing in mind that the Ministry of Energy has been under the authority of the reform and change team for years, which devastated the sector due to its corruption and mismanagement. After lots of dispute, the Council of Ministers recently approved the national plan for the “sustainable advancement of the electrical sector.”

Still, the final salvation for the electricity crisis will not be accomplished before the year 2026, if the World Bank approves the financing and the required tenders are conducted in a transparent manner. The Council also agreed, in its last session, in principle, to transfer an amount of 78 million US dollars to continue operating the electric power generation plants, but this approval also requires proposals from the Ministry of Finance on the financing mechanism and approval from the Banque du Liban to open the credit. In parallel, Iranian Foreign Minister Hussein Amir Abdollahian reiterated during his visit to Beirut last week his country’s readiness to contribute to building two power plants.

Expert sources in the energy file confirm to “Sawt Beirut International,” that there is currently no need to build new power plants, and the priority is to maintain and reactivate the current plants and secure the gas and fuel needed, and considered that the Iranian official’s announcement is just meaningless talk.

Regarding the authority regulating the electricity sector’s appointment, the sources stress the importance of this as soon as possible, especially as it is one of the most prominent reforms required by the international community and the International Monetary Fund alike, especially in terms of keeping pace with this authority for the implementation and supervision of the electricity plan, stressing the need to separate it from Politics, considering that the electricity sector should not be politicized.

The sources also consider that the goal of forming the regulatory body, which is composed of experts, is to organize the sector and find solutions for it, especially since it has the authority to conduct tenders and oblige collection companies in return for the state and the citizen to benefit from obtaining the best service at the most affordable price, in addition to the importance of collection on a regular basis and without exceptions, as is the case today, which led to the loss of millions of dollars by the institution.

Political differences and sectarian quota system, are among the main reasons that hindered the formation of the regulating body, the sources indicated , adding that when Gebran Bassil took over the Ministry of Energy in the year 2014, he tried to change the tasks of the commission by giving the minister his powers and making amendments to his work, but he was unsuccessful.

The sources consider that if the regulatory authority had been appointed, since the law of its formation was approved nearly thirty years ago, it would have saved the state millions of dollars, and it would have been able to draw more electric power from Arab countries as well as gas, it even could have dispensed the deal of ships, that well-known parties benefited from.

From here, the sources stress that the appointment of the commission has become more than a necessity at the present time, and considers that if the international bodies, the World Bank and the International Monetary Fund do not obtain the confidence required to run this sector from outside the political squabble, then no assistance can be provided to Lebanon.

In the meantime, the harsh legalization continues and the state’s losses continue due to the patchwork policy adopted for years, knowing that the one and well-known requirement, is to find radical solutions, but it is impossible in the presence of the political system that always benefits from crises.

 

 

    Source:
  • Sawt Beirut International