Electricité du Liban

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Electricité du Liban

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  Research question: Could a uniform distribution of electricity consumption throughout the day help improve the efficiency, as well as cost of electricity in favor of both EDL and the Lebanese  people?  Name: Gilles Hoayek ID: 201602119 Subject: ECO 311   Electricité du Liban is a public institution in Lebanon licensed to generate and distribute electrical energy. As reported by experts in the field, this institution initiated energy to Lebanese homes of 2,300MW; nonetheless, production does not exceed 1,500MW because of losses caused  by unbilled consumption for example, or the depreciation of infrastructure. The people are now feeling dissatisfaction, given that they are facing more expenses using private generators. In 2013, it is estimated that the private generator commerce made $2.5 billion just by completing what the EDL could not. Moreover, as tariffs stayed the same even after the oil’s price has increased, EDL is suffering losses, and collecting subsidies equal to 15% of the government’s annual expenses. Plus it is stated that about 20% of the electricity being distributed remain unbilled because of its illegal consumption by Lebanese. Slab in kWh Tariff in LBP/kWh 1 - 100 35 101 - 200 55 201 - 300 55 301 - 400 80 401 - 500 120  over 500 200 In exergue, looking at these prices, knowing that it costs the public institution 197 LBP/kwh, it is terminated that EDL is making losses, given that it only makes profits with customers who consume more than 500 kwh/month. Plus, EDL does n’t have the power to raise the prices, because it will cause frustration, having the public pay more without having any improvement concerning the product. “Time of Use” (TOU), an idea presented by the minister of Energy and Water Mr. Gebran Bassil, in his report Mr. Bassil talks about a very specific factor that is time; time that is a factor that we should consider while talking about electricity since we cannot store electricity for future use. So the cost of electricity is higher during peak times, where demand is high; in this report, it is suggested for people to change part of their demand of electricity from peak times to off-peak times; thus people will get rid of private generators, given that they will use irons, washing machines, or dishwashers - which constitute a large part of their consumption at a time when electricity is provided. This will help expand the demand of electricity uniformly during the day. The appliance of TOU will accomplish a win/win situation for the consumers and the government, since consumers are paying less (not having to pay for private generators) and for the government, considering that we’re achieving a greater energy efficiency, and that it would help relief the country from financial burdens.   
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