Lebanon’s State power utility has warned public administrations that their electricity could be cut off if they fail to settle outstanding bills, Annahar newspaper revealed.

Électricité du Liban (EDL) has given public institutions five days to pay their electricity bills and arrears before disconnections begin, with the deadline set for August 17.

The move has raised questions over whether EDL can cut power to government institutions that are central to the functioning of the public sector, and whether doing so could amount to disrupting essential public services.

But Dr. Patrick Mardini, president of the Lebanese Institute for Market Studies, said EDL has the legal authority to disconnect customers who fail to pay, provided it follows the required procedures.

He described the utility's longstanding problem as fundamentally a revenue-collection crisis.

“Since taking office, EDL’s new board has taken excellent steps despite the obstacles it has faced internally,” Mardini told Annahar. “It adopted a governance plan based on transparency and accountability. That led to attempts to obstruct it from within, but the board succeeded in getting it approved.”

He said the utility’s latest decision to target unpaid bills was an important step because it addressed the core problem.

“The fundamental reason for electricity cuts is the lack of money to buy fuel oil,” Mardini said. “That money comes from paying electricity bills, and there are bills that simply are not being paid. So the fundamental problem facing the electricity sector is revenue collection.”

The problem, he said, is not confined to government institutions. It also extends to different areas of the country, where some consumers pay what they owe while others fail to settle their bills.

He nevertheless welcomed EDL’s decision to begin with public administrations.

“The fact that the institution has started, following the principle that those closest to you should be dealt with first, by going after public institutions is an excellent step,” he said. “It is very important and should be continued.”

Mardini rejected the notion that requiring public institutions to pay their electricity bills was somehow exceptional.

“Why can a private generator collect 100% of what it is owed and cut off customers who do not pay, while EDL collects only around half of what it is owed and does not disconnect the electricity?” he said.

“The equation is clear: every service should be provided in return for payment. If there is no accountability, we are effectively encouraging people — including public institutions — not to pay. If we do not cut off the electricity, we are effectively legitimizing the violation.”

Mardini said the current approach only appears extraordinary because Lebanon’s electricity sector had been managed poorly for decades.

“What is happening is not the exception. The exception was the previous situation,” he said.

“We need to respect the principle of reward and punishment. When something is left without accountability, people learn to take what they are not entitled to. That is the normal way a system should operate.”

The new EDL board, he said, is seeking to establish principles of good governance and translate them into concrete measures.

“Today, the board is laying new foundations for good governance and accompanying them with measures on the ground,” Mardini said. “It is turning EDL into an institution that is managed normally, according to a simple equation: those who pay receive electricity, and the opposite should not be allowed.”

“For decades, the institution was managed extremely poorly, to the point that this way of operating came to be considered normal.”

Mardini said EDL does have the authority to disconnect electricity, but that authority is not absolute.

A disconnection must be based on actual outstanding bills owed by an administration or public institution, with the payment deadline having passed. The utility must then issue a formal warning and allow a period for payment in accordance with the applicable regulations and decisions authorizing disconnection.

“That is exactly what EDL has done recently,” Mardini said.

The distinction is important because the utility cannot simply decide to cut electricity to a public institution at will. Its authority must be exercised within the legal and regulatory framework governing electricity collection.

Mardini also argued that EDL’s stricter collection policy should be viewed in the context of Lebanon’s broader struggle to keep its power system functioning.

“This is the first summer since 2019 that we have not experienced a total blackout,” he said.

He criticized former ministers and former officials who, in his view, were now questioning the measures being taken to secure the utility’s finances.

“Every year, we ended up in darkness,” Mardini said. “What is happening today is an effort to prevent that by securing revenues that provide the necessary funds.”

In previous years, he said, the state relied heavily on depositors’ money to sustain public spending.

“Previously, they were taking money from depositors,” he said. “Once that money ran out, there was no alternative but to take sound and responsible measures.”