The Egyptian executive on Tuesday recorded a 19.1% increase in electricity prices . This ” reasonable ” decision is part of the process of removing electricity subsidies. These will now continue until 2024-2025 instead of 2022, as originally planned.
In Egypt, the Ministry of Energy announced on Tuesday, June 09, an increase of 19.1% in electricity consumption costs for homes. This measure is valid for the 2020-2021 fiscal year which will start next month.
“This is a reasonable increase intended not to overburden citizens,” said Mohamed Shaker (photo), the Minister of Energy.
In fact, for those who consume between 0 and 50 kilowatts (kW), the price will be 38 piastres per kilowatt instead of 30 piastres. From 51 to 100 kW, the price will be 48 piastres per kW instead of 40 piastres, an increase of 20%. For consumers between 100 and 200 kW, the price per kilowatt will be 65 piastres instead of 50 piastres, an increase of 30%. From 201 to 350 kW, the price per kilowatt will be 96 piastres instead of 82 piastres, an increase of 16%. From 351 to 650 kW, the price per kilowatt will be 128 piastres instead of 100 piastres. The price per kilowatt for consumption above 1000 kW remained without increase, at 145 piastres, specifies the ministry.
In contrast, consumers over 650 kW per month will be completely removed from the government subsidy program.
In addition, the ministry has informed the public that the electricity subsidies will be maintained until 2024-2025, instead of ending in 2022 (in accordance with a government decision dating from 2019). A turnaround due to current financial conditions resulting from the impact of the coronavirus pandemic.
Source: Agence Ecofin