Politics

Lebanon Begins Cutting Power to 100 Public Institutions Over Unpaid Bills

By Justin Salhani

Lebanon’s Ministry of Energy and Water has started shutting off electricity to about 100 public institutions that have outstanding bill payments, local media reported. The move, which began on Monday, escalates the dispute between Energy Minister Joe Saddi and the government. Saddi has been boycotting cabinet meetings after accusing the government of failing to meet his demands to increase power supply, reduce fuel costs, and settle unpaid bills with the state‑owned electricity company.

Lebanon has faced chronic power cuts for years, with state‑provided electricity falling sharply after the 2019 economic and banking crisis. In Beirut, supply once ran for about 21 hours a day but has since dropped to two to four hours, and some days see no power at all. Analysts attribute the problem to deep structural issues and widespread corruption across the supply chain.

With the state’s supply unreliable, many locals rely on private generators, often run by political parties or individuals with close ties to power. Despite hopes that a reformist government taking office in early 2025 would improve the situation, state electricity remains limited while energy costs and inflation have risen sharply. The World Bank projects Lebanon’s year‑on‑year inflation at 17.5 percent this year, and fuel costs linked to the U.S.–Israel war on Iran have driven up the price of diesel used by private generators.

The dispute over electricity has sparked speculation about a cabinet reshuffle and the resignation of Saddi, a member of the right‑wing Lebanese Forces (LF) party. Saddi has said he has been urging Prime Minister Nawaf Salam’s government to prioritize his ministry’s portfolio, but has reduced pressure when the war on Lebanon intensified in early March. After the draft 2027 budget was announced in October, the LF and Saddi objected, claiming insufficient attention to the electricity sector. In early October, Saddi pledged to boycott cabinet meetings, a stance he and three LF colleagues continued last Thursday.

Saddi’s boycott is viewed by some analysts as a political move to maintain popular support. Under previous governments, the Energy Ministry was sometimes led by the LF’s main Christian rival, the Free Patriotic Movement (FPM). FPM leader Gebran Bassil has criticized Saddi’s management of the ministry.

Qatar has offered a lifeline, with Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani visiting Beirut last month and confirming plans for an energy partnership, including a solar power project. Doha has also offered to build two power plants over the next three years and to supply Lebanon with a 20‑year liquefied natural gas deal. If approved, the deal could benefit Lebanon’s energy sector, but analysts say structural reforms are still needed, potentially including rebuilding the entire grid.

Experts say Lebanon’s aged energy infrastructure and the need for a new sustainable model make the current state‑subsidised electricity model unsustainable. Private investment is seen as a possible solution, but Lebanon’s lack of political stability, ongoing conflict risks, and unresolved financial and banking reforms pose significant obstacles to attracting investors.

"Political stability is key for investors," said energy expert Jessica Obeid. "Lebanon has been bankrupt for at least seven years, and there is no clear will for reform, which increases investment risks. The grid is damaged and requires rehabilitation."

Saddi has previously proposed public‑private partnerships to address the crisis, but the country’s instability and financial challenges remain major barriers to such initiatives.