{"id":257607,"date":"2026-07-21T00:48:57","date_gmt":"2026-07-20T22:48:57","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=257607"},"modified":"2026-07-22T00:50:14","modified_gmt":"2026-07-21T22:50:14","slug":"exclusive-hosni-bey-the-electricity-crisis-may-not-be-a-production-crisis-but-rather-an-economic-model-that-encourages-excessive-consumption-and-lack-of-conservation","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/exclusive-hosni-bey-the-electricity-crisis-may-not-be-a-production-crisis-but-rather-an-economic-model-that-encourages-excessive-consumption-and-lack-of-conservation\/","title":{"rendered":"Exclusive \u2014 Hosni Bey: The Electricity Crisis May Not Be a Production Crisis but Rather an Economic Model That Encourages Excessive Consumption and Lack of Conservation"},"content":{"rendered":"\n

Libyan businessman Hosni Bey<\/strong> told our source <\/em>exclusively:<\/p>\n\n\n\n

\u201cIn my view, Libya’s electricity crisis is not simply a production crisis, nor is it the result of population growth or rising temperatures. At its core, it is a crisis of an economic model that encourages excessive consumption and discourages energy conservation.<\/p>\n\n\n\n

Energy consumption rates in Libya exceed twice the rates of all Mediterranean countries<\/strong>, despite the limited contribution of the industrial and agricultural sectors to Libya’s GDP.<\/p>\n\n\n\n

Although Libya has all the necessary resources to provide stable energy, we are experiencing some of the most severe power outages. We have installed generation capacity and natural gas reserves sufficient to provide stable electricity at the lowest cost in the region. However, subsidizing electricity prices rather than providing targeted cash support is the main factor driving excessive electricity consumption.\u201d<\/p>\n\n\n\n

Bey added that Libya’s electricity generation model, which he said violates the law establishing the Electricity Company, Law No. 17 of 1984<\/strong>, has resulted in the sector operating outside globally recognized economic and financial standards.<\/p>\n\n\n\n

He said there are no clear performance indicators and no accurate calculation of production costs, which exceed US$8 billion annually in gas costs alone<\/strong>, in addition to diesel costs and billions allocated through development and operational budgets.<\/p>\n\n\n\n

He also noted that the system lacks even the basic standards of digital measurement, including financial statements, profit and loss accounts, and return on capital<\/strong>. There are also insufficient allocations for replacement and renewal, while there is no accountability mechanism linking the cost and scale of spending to actual results.<\/p>\n\n\n\n

Bey explained that continuing to sell electricity at nominal prices that do not cover even a small portion of its actual cost, combined with the absence of sustainable compensation mechanisms for the company, has led to the erosion of investment and weakened its ability to maintain, modernize, and expand its infrastructure.<\/p>\n\n\n\n

As a result, he said, the company has become completely dependent on financing from government budgets\u2014a source of funding that fluctuates according to financial and political circumstances.<\/p>\n\n\n\n

He added that excessive consumption and rising demand, shortages of natural gas supplies to some power plants, delays in implementing generation and transmission projects, inadequate maintenance, and attacks on the electricity grid have all exacerbated the crisis. However, he stressed that these factors are not the root cause<\/strong> of the problem.<\/p>\n\n\n\n

He continued:<\/p>\n\n\n\n

\u201cIn my view, the solution is not limited to building new power plants. It must begin with reforming the sector’s model itself, transforming it into a sustainable and financeable sector based on governance as stipulated by Law No. 17 of 1984, transparency, performance measurement, secure fuel supplies, and investment in the electricity grid.<\/p>\n\n\n\n

At the same time, the subsidy system must be reformed in a way that protects citizens without wasting resources.<\/p>\n\n\n\n

In short, Libya’s electricity crisis is a crisis of an economic model before it is an energy crisis<\/strong>.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Libyan businessman Hosni Bey told our source exclusively: \u201cIn my view, Libya’s electricity crisis is not simply a production crisis, nor is it the result of population growth or rising temperatures. At its core, it is a crisis of an economic model that encourages excessive consumption and discourages energy conservation. Energy consumption rates in Libya […]<\/p>\n","protected":false},"author":13,"featured_media":257608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[613],"class_list":["post-257607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/257607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=257607"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/257607\/revisions"}],"predecessor-version":[{"id":257609,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/257607\/revisions\/257609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/257608"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=257607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=257607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=257607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}