Installation of meters
on generators begins

Price set at LL410 per kilowatt hour

A government order to install energy meters on private power generators and regulate the price of privately-generated electricity has gone into effect more than a year after it was issued.

The decision, which was jointly issued by the Ministries of Economy and Trade (MoET) and Energy and Water (MoEW) in mid-2017, was roundly opposed by energy generator owners, who threatened to shut down their generators, leaving their customers in the dark, if they were forced to install meters, which measure the amount of electricity consumed.

The two parties have since been through several rounds of negotiations to set a price per kilowatt hour.

“The decision will be implemented no matter what,” said Minister of Economy Raed Khoury in an Oct. 1 radio interview. “We believe that LL330 per kWh is more than fair for generator owners, who are asking for the price to be set at LL700 per kWh.”

The MoEW issued a statement the same day setting the price of electricity from private generators at LL410/kWh.

A 2012 circular put a cap on generator fees, with the MoEW setting the prices that generator owners are permitted to charge their customers and updated monthly, taking into account the cost of fuel. However, there was little follow-up that they were abiding by the rules.

MoET inspectors will monitor the application of the order, and hold violators accountable, Khoury said.

“These measures range from fines to the confiscation of the generator, depending on the type of violation.”