As darkness deepens across public offices in Beirut, Lebanon has begun shutting down the supply of electricity to approximately 100 public institutions with outstanding bill payments, according to local media reports cited by Al Jazeera. This drastic measure underscores the severe strain on the nation's grid, where state-provided power has plummeted from 21 hours a day to mere hours or complete blackouts following the 2019 economic crisis.

According to Al Jazeera, the decision marks a sharp escalation in a dispute by Energy Minister Joe Saddi, who began boycotting cabinet meetings over the government's failure to address demands to increase power supply, reduce fuel cost burdens, and settle unpaid bills to the state-owned electricity company. The World Bank projects year-on-year inflation in Lebanon to reach 17.5 percent this year, while fuel costs tied to the United States-Israel war on Iran have exponentially increased electricity expenses for private generators.

Background

Lebanon has struggled with power cuts for years, but the situation worsened dramatically after the 2019 economic and banking crisis, as reported by Al Jazeera. In place of a reliable state grid, an alternative economy emerged where residents rely on private generators run by political parties or individuals close to power. Although a reformist-led government took power in early 2025, state electricity supplies remain meagre while energy costs and inflation skyrocket. Energy experts cited by Al Jazeera note that deep-rooted corruption spanning billions of dollars across the entire supply chain, alongside old state power plants and reliance on expensive diesel, prevents quick fixes.

Why it matters

For ordinary readers observing international developments, the situation highlights the severe challenges faced by economies grappling with structural corruption, energy shortages, and external conflicts that drive up inflation and fuel costs. The reliance on costly alternative energy sources when state infrastructure fails offers a stark parallel to the complexities of managing national utility grids during economic downturns.

What's next

The ongoing electricity dispute has heightened speculation regarding a possible cabinet reshuffle and the potential resignation of Energy Minister Joe Saddi, according to Al Jazeera.