Electricity prices hike not related to IMF loan to Egypt; minister says

Electricity Minister Mohamed Shaker said the subsidies value on the new electricity prices will register EGP 29bn in the current fiscal year, adding that the budget has been approved by parliament.

During a press conference on Monday to announce the new electricity prices, he said that the fare will depend on the exchange rate, as production requires importing equipment from abroad in US dollars for the establishment of power plants.

The minister noted that negotiations with the International Monetary Fund for a loan are not related to increasing electricity prices, pointing out that if the new prices are not adopted, the subsidies bill would reach EGP 48bn, but with the changes it would drop to EGP 29bn.

He pointed out that the reason for increasing the prices is the rising exchange rate, the growing cost of production, and the escalating costs for projects.

Shaker noted that the prices have increased across all consumption segments and will start to be imposed on August bills.

The first segment from 0 KW to 50 KW will be charged EGP 0.11 per KW, instead of EGP 0.075. The second segment from 51 KW to 100 KW will be charged EGP 0.19 per KW instead of EGP 0.145. The third segment from 0 KW to 200 KW will be charged EGP 0.215 per KW instead of EGP 0.16. The fourth segment from 201 KW to 350 KW will be charged EGP 0.42 per KW instead of EGP 0.29.

The fifth segment between 351 KW and 650 KW will be charged EGP 0.55 per KW instead of EGP 0.39. The sixth segment from 651 KW to 1,000 KW will be charged EGP 0.95 instead of EGP 0.68. The seventh and highest segment—higher than 1,000 KW—will be charged EGP 0.95 instead of EGP 0.78.

As for commercial segments: between 1 KW to 100 KW clients will be charged EGP 0.35 instead of EGP 0.34, 1 KW to 600 KW at EGP 0.69 instead of EGP 0.58, and 600 KW to 1,000 KW will be charged EGP 0.96 per KW instead of EGP 0.86.

Source: Daily News Egypt