Lebanon cuts power to 100 public institutions over unpaid bills

Approximately 100 public institutions in Lebanon are facing electricity shutdowns as of Monday, November 2. The Ministry of Energy and Water initiated the cuts to force agencies to settle outstanding payments. This action represents the latest escalation in a dispute between Energy Minister Joe Saddi and the central government.

Saddi has recently boycotted cabinet meetings, citing the government's failure to address his demands. His primary goals include increasing power supply, reducing fuel cost burdens, and settling unpaid bills to the state-owned electricity company. He stated that the boycott is a method to pressure the administration to focus on the crisis.

The national power supply has deteriorated sharply since the 2019 economic and banking crisis. In Beirut, state-provided electricity has fallen from approximately 21 hours daily to just two to four hours. On some days, residents receive no state power at all. This scarcity has driven many locals to rely on private generators, many of which are operated by political parties.

Inflation and fuel costs have risen alongside the power shortage. The World Bank projects year-on-year inflation in Lebanon at 17.5 percent for this year. Fuel prices have also increased due to the United States-Israel war on Iran, raising costs for private diesel generators. Jessica Obeid, a Lebanese energy expert, noted that the sector suffers from corruption worth billions of dollars across the supply chain.

Saddi, a member of the right-wing Lebanese Forces party, has intensified his efforts since the draft 2027 budget was announced in October. He and his party objected to the budget, arguing that the electricity sector was not receiving sufficient attention. Last Thursday, three other Lebanese Forces ministers joined Saddi in boycotting a cabinet meeting. Sami Zoughaib, an economist at The Policy Initiative, described the boycott as a political move to maintain popular support.

Qatar has offered to build two power plants over the next three years and supply liquefied natural gas for 20 years. This proposal was confirmed during a visit by Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani to Beirut last month. Saddi has also proposed public-private partnerships with private investors to manage the grid. However, experts warn that political instability and a lack of banking reform may deter investment.

The Free Patriotic Movement, led by former energy minister Gebran Bassil, has criticized Saddi's management of the portfolio. Bassil previously failed to deliver on promises to provide 24-hour state electricity. Obeid stated that the country requires a clear vision and bold decisions to rebuild its damaged grid. She emphasized that Lebanon cannot rely on short-term fixes and must address the underlying structural issues of its energy sector.