Electricity costs up to 40% of Lebanon's production

The article addresses the rising cost of electricity in Lebanon and its impact on small and medium-sized enterprises. Electricity now accounts for between 10% and 40% of production costs, with a sharp increase estimated at around 300% since 2020 due to the decline in the quality of the electrical supply and the high costs of private generators. Businesses are forced to finance multiple energy sources, including government electricity, private generators, and solar power, which raises their expenses and leads to higher prices for goods and services, ultimately passed on to consumers. This surge in energy costs threatens the sustainability of enterprises and amplifies overall inflation. It also affects consumers, who bear the "Lebanese premium" by paying higher prices or experiencing reduced production and consumption, thereby jeopardizing the future of production and investment in the country.

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