The electricity sector is highly inefficient in Lebanon and is imposing a significant
economic and social cost. Electricité du Liban (EdL), the state-owned company mandated with the
responsibility of generation, transmission, and distribution of electricity, is faced with three main challenges: (i) production capacity is well below consumers’ demand; (ii) losses (technical,
non-technical and non-collection) are very high, estimated at 43 percent of production—i.e., only
57 percent of electricity produced is actually transmitted, billed, and collected; and (iii) electricity
tariffs are well below cost recovery, and EdL’s large financial losses impose a heavy burden on the
government budget.
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