Egypt postpones electricity prices increase for 6 months, state to bear LE10B

  • 16 June 2022 / News / 378 / Fares RAHAHLIA

Egypt postpones electricity prices increase for 6 months, state to bear LE10B
CAIRO - 15 June 2022: Egypt postponed raising electricity prices for a period of 6 months, until the end of 2022, in implementation of President Abdel Fattah El-Sisi’s directives, according to Prime Minister Mostafa Madbouli.
The Prime Minister stated, in a press conference, Wednesday, that the cost of postponing the implementation of electricity prices that the state will bear for a period of 6 months amounts to LE 10 billion.
Earlier this week, President Sisi announced the postponement of the tariff increase and the reduction of electricity subsidies in Egypt, for the third time in two years, against the background of the global crisis that led to a rise in oil and energy prices globally.
Sisi said, during the inauguration of projects in Sadat City, that the decision to postpone the increase in electricity prices - which comes as part of the government's plan to reduce electricity subsidies - comes in conjunction with a global crisis that pushed the price of a barrel of oil towards $120, and wondered: What if its price rose to $150?
The President explained the government’s keenness on fuel and energy prices, pointing out that the decision was taken not to increase electricity prices, and this is the third time that the program to reduce electricity subsidies has been postponed, in order not to add new burdens on citizens.
The Egyptian government had developed a program to gradually phase out electricity subsidies, starting from the 2014/2015 fiscal year, but this step was postponed twice previously, due to the economic crisis in the country, and later the crisis in the world, especially in light of the Russian-Ukrainian crisis.
Electricity subsidy
The electricity price increase was scheduled for the year 2018/2019, before the government took a decision to postpone this increase, and then took a similar decision in the fiscal year 2021/2022, before President Abdel Fattah Al-Sisi announced the latest postponement decision.
Lifting electricity subsidies does not mean the complete abolition of all consumer segments in Egypt, as the Ministry of Electricity maintains reciprocal support between owners of heavy and simple consumption, as part of efforts to take into account the low-income citizens.
Details of postponing electricity subsidy cuts
President Abdel Fattah El-Sisi announced the government’s intention to postpone the increase in electricity prices, which comes within the program to reduce electricity subsidies, which was included in the economic and social development plan for the fiscal year 2022-2023, prepared by the Ministry of Planning and approved by the parliament.
Before the postponement decision, it was assumed that the electricity sector’s revenues would increase during the 2022-2023 fiscal year, to LE 358.8 billion , compared to LE 317.5 billion in the 2021-2022 fiscal year.
The plan aimed to increase production at fixed prices to about LE 326.4 billion during 2022-2023, compared to LE 317.5 billion during the previous year.
Here are the prices of electricity segments that will continue to be applied until January 2023:
1- The first bracket from zero to 50 kilowatts - 48 piasters
2- The second bracket, from 51 to 100 kilowatts - 58 piasters
3- The third bracket, from zero to 200 kilowatts - 77 piasters
4- Fourth bracket, from 201 to 350 kilowatts - 106 piasters
5- The fifth bracket, from 351 to 650 kilowatts - 128 piasters
6- The sixth bracket, from zero to less than 1000 kilowatts - 128 piasters
7- The seventh tranche is from zero to more than 1000-145 piasters. The owners of this segment also do not receive support and are not subject to the autopsy system, and its price next July will be the same as it was three years ago - 145 piasters.

source: egypttoday.

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