Lebanon’s new Energy Minister, Joe Saddi, held his first press conference this week, addressing the country’s electricity crisis and outlining his plans to tackle some of the sector’s most pressing issues. While it is no secret that this ministry has been plagued by decades of corruption and incompetent leadership, the starting point for any reform in this sector—much like in the telecommunications sector—is the establishment of a regulatory authority. This is a fundamental reform requirement from donor agencies to support Lebanon’s recovery.

However, until this is achieved, the ministry faces several significant challenges, mainly:

1- Severe understaffing: The vacancy rate stands at 85%. Additionally, the mandates of the Board of Directors of Electricité du Liban and the Boards of Directors of water institutions have expired.

2- Poor collection rates: The collection rate remains below 60%. Of the 40% that remains uncollected, 30% is attributed to electricity theft, amounting to approximately $200 million.

Improving collection rates and addressing violations will certainly help bring much-needed funds back into the ministry. Minister Saddi has announced that areas cooperating with efforts to reduce violations will be rewarded with additional supply hours. This is a smart approach to encourage municipalities to collaborate. However, this alone will not suffice—the authorities must take immediate and decisive action to crack down on those stealing electricity.