After more than two decades, Lebanon’s electricity sector is finally taking its first steps toward reform with the appointment of the long-awaited regulatory authority. Its absence since 2002 has hindered sector development, blocked the entry of new private companies, and constrained power production.

Law 462, enacted in 2002 to organize the sector, mandates the establishment of an independent authority with broad regulatory and oversight powers. Its responsibilities include ensuring the proper functioning of the sector, overseeing its organization and operations, encouraging private sector investment, issuing licenses, encouraging and monitoring competition, setting and supervising price ceilings for electricity production and tariffs, ensuring the efficient delivery of electricity to consumers, protecting consumer interests, and maintaining sector stability.

The announcement of the authority’s formation has sparked debate over the sector’s future. Could this mark a turning point toward comprehensive reform and a key step in restructuring Lebanon’s electricity system?

Energy, Oil and Gas legal expert, Dr. Christina Abi Haidar, told Kataeb.org that Lebanon has waited for the regulatory authority since 2002, and the real challenge now lies in its implementation.

“What matters most to citizens is access to electricity at lower costs, but this will take time,” she said. “The laws have not been enforced since 2002. Law 462 itself requires careful implementation. The appointment of the regulatory authority is just the beginning. It faces many tasks, including developing internal regulations, establishing its organizational structure, and conducting hiring; this a process that will take around seven months. After that, the authority will work with the Minister of Energy to draft a general electricity policy for Cabinet approval, which is a complex process that also requires time.”

Abi Haidar emphasized that the authority will later address power plants and the dismantling of Electricité du Liban’s monopoly over production, transmission, and distribution. 

“Law 462 is important because it enables the authority to break the monopoly and bring in private sector participation in production and distribution, through licenses and permits that require approval from the Supreme Council for Privatization and Partnerships, which has not yet been appointed,” she explained.

Abi Haidar noted that while the creation of the authority is a positive first step, reform will be slow. She cautioned that the path ahead is still long, and solutions cannot be achieved overnight. 

“After 20 years of inaction, no new power plants, and a sector plagued by financial collapse and corruption, solutions cannot happen overnight. Full reform depends on private sector involvement. But transparency is essential given previous mismanagement, with global-standard tenders to prevent monopolies and avoid political or sectarian favoritism.”

Abi Haidar concluded by expressing hope that Lebanon can rebuild its institutions properly, particularly the electricity sector, which has drained public resources and imposed heavy costs on citizens, leaving little capacity for further losses.