In Lebanon, the burden of electricity costs is felt twice over. Instead of a single utility bill, Lebanese families are forced to pay for two separate sources of electricity: a limited supply from the state-owned Electricité du Liban (EDL), and a second, far more expensive bill for private generator subscriptions that have become a lifeline amid chronic power shortages.

According to recent data published by Numbeo, Lebanon has the highest combined monthly electricity and water costs among Arab countries. The study reveals that Lebanese households pay approximately $0.206 per kilowatt-hour, well above the global average.

Energy expert Christina Abi Haydar says the cost of generator subscriptions far exceeds actual production expenses.

“Producing one kilowatt-hour of electricity requires less than one liter of diesel,” she told Nidaa Al-Watan newspaper. “Yet people end up paying three to four times that amount when they rely on private generators.”

These inflated costs stem not only from diesel fuel but also include maintenance, operational expenses, employee wages, equipment wear and tear, and profit margins for generator owners.

What’s particularly striking is the disparity in how generator subscription prices respond to changes in fuel costs. Prices tend to climb quickly when diesel becomes more expensive, a logic that seems justified given fuel's central role in power generation. However, when diesel prices drop, the reductions in generator fees are often slow, negligible, or nonexistent.

“This pricing behavior raises serious questions about transparency,” Abi Haydar said, noting that generator operators frequently ignore the official price ceilings issued by the Ministry of Energy.

Adding to the controversy is the legal ambiguity surrounding private generator usage.

“It’s technically illegal to generate electricity outside the framework of Electricité du Liban,” Abi Haydar noted, pointing to legislation that grants EDL exclusive rights over power production.

But even EDL’s billing practices have come under scrutiny. Abi Haydar explained that state electricity tariffs should, in theory, fluctuate in accordance with global fuel prices, but this is rarely implemented in practice.

The lack of effective regulation has allowed generator owners to dominate the sector unchecked. Abi Haydar says Lebanon’s long-delayed electricity regulatory authority, mandated under Law 462/2002, is the only institution legally empowered to establish official pricing mechanisms and oversee the integration of private electricity providers into a transparent, legal framework.

“If the regulatory body were activated, it could help phase out the use of private generators altogether,” she said.

In the meantime, Abi Haydar urged the Ministries of Energy and Economy to tighten oversight to prevent exploitation and protect consumers from arbitrary pricing.

While municipalities technically have the authority to monitor generator activity, Abi Haydar said they often lack the resources, or the will, to do so. In some cases, she added, local authorities may have shared interests with generator operators. This dysfunction has left the Ministry of Economy to handle price enforcement alone.