Electricity Sector Reform Framework

The article discusses the electricity sector restructuring plan in Lebanon, presented by the Electricity Regulatory Authority, aimed at gradual reform of the sector and strengthening the regulatory body's role. It notes that the existing law, in place for over twenty years, has not been effectively translated into practice, leading to persistent structural problems. The current model, which combines generation, transmission, and distribution within a single entity, is no longer capable of meeting the sector’s needs and rapid growth. The plan focuses on separating activities and establishing independent entities for generation, transmission, and distribution, with a gradual transition process to create a competitive electricity market. This begins with the establishment of a public joint-stock company instead of the Electricité du Liban (EDL), to ensure service continuity during the reform process. Furthermore, the policies emphasize that the role of the regulator will extend beyond issuing licenses to include setting regulatory frameworks, such as tariffs and market rules, as well as regulating distributed energy sources. In conclusion, the document indicates that adopting the policy paper is the first step in implementation, and that the results will depend on the capacity of relevant parties to gradually carry out the reforms, ensuring a more efficient electricity sector, improved service quality, investment incentives, while maintaining the state's role in regulating the sector.

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