Electricity Authority outlines sector framework

The article focused on the electricity sector policy paper issued by the Electricity Regulatory Authority after it was approved by the Cabinet. The aim of the paper is to reform the structure of Lebanon's electricity sector. It includes a plan to transition from the current model, which combines generation, transmission, and distribution within a single entity, to separating these activities and establishing independent entities for each. This is intended to improve performance, enable more accurate cost measurement, and strengthen accountability. Moreover, the strategy advocates for establishing a public joint-stock company as an interim step rather than moving directly toward a liberalized electricity market, in order to ensure the continuity of service provision. The Authority clarifies that its role will extend beyond issuing licenses to include setting regulatory rules, monitoring compliance, and protecting consumer rights. The paper also highlighted the importance of small-scale projects (microgrids) as a temporary solution in specific situations, without replacing the distribution network permanently. The Authority emphasizes that this reform marks the beginning of an implementation phase that requires a gradual application of procedures to ensure sector stability and service improvement, while also encouraging investment and maintaining the regulatory role of the state.

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