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World · Israel and Gaza

Lebanon Cuts Power to 100 Government Agencies Over Unpaid Bills

Energy Minister Joe Saddi is escalating his dispute with the cabinet by withholding electricity from state institutions that have not settled their accounts.

By Anthony Lawson ·

Illustration for: Lebanon Cuts Power to 100 Government Agencies Over Unpaid Bills
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Lebanon’s public power grid has long struggled to keep the lights on, but the situation has worsened recently as the state takes direct action against its own agencies.

The Ministry of Energy and Water began cutting electricity to roughly 100 public institutions on Monday. These agencies have outstanding bills with the state-owned electricity company. The move marks a sharp increase in the conflict between Energy Minister Joe Saddi and the rest of the government.

Saddi has started boycotting cabinet meetings to pressure Prime Minister Nawaf Salam’s administration. He argues that the government is ignoring his demands to boost power supply, lower fuel costs, and clear unpaid debts to the national utility. Last Thursday, three other ministers from Saddi’s political party, the right-wing Lebanese Forces, joined him in skipping cabinet sessions.

The crisis is rooted in deep structural failures. State-provided electricity in Beirut used to be available for about 21 hours a day. That number has dropped to just two to four hours in recent years, with some days seeing no power at all. Since the 2019 economic and banking crisis, many residents have turned to private generators. These units are often run by political parties or individuals with close ties to power.

Inflation and fuel prices have made the reliance on private generators even more expensive. The World Bank projects that year-on-year inflation in Lebanon will reach 17.5 percent this year. Rising fuel costs, linked to the recent conflict between the United States, Israel, and Iran, have driven up the price of electricity for many households and businesses.

Jessica Obeid, a Lebanese energy expert, attributed the ongoing problems to widespread corruption across the supply chain. She stated that the sector suffers from issues worth billions of dollars and that the country lacks a clear vision for its power system. Obeid noted that the state relies on expensive diesel and aging power plants, making quick fixes ineffective.

Sami Zoughaib, an economist at the Lebanese think tank The Policy Initiative, described Saddi’s boycott as a political maneuver. He suggested the move aims to prevent the Lebanese Forces party from losing popular support if it is seen as failing to manage the ministry effectively. Under previous governments, the rival Free Patriotic Movement often controlled the Energy Ministry. Its leader, Gebran Bassil, has criticized Saddi’s management, despite his own past failure to deliver on promises of 24-hour power.

Qatar has offered a potential solution to alleviate the strain. Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani visited Beirut last month to confirm plans for an energy partnership. Reports indicate that Doha has offered to build two power plants over the next three years and provide a 20-year supply of liquefied natural gas. Saddi has also proposed bringing in private investors for public-private partnerships, though experts warn that political instability and a bankrupt banking sector may deter outside capital.

The government is scheduled to continue its review of the 2027 budget, where the energy sector remains a point of contention. The draft budget announced in October drew objections from Saddi and his party over the lack of focus on electricity infrastructure.

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