Egypt’s electricity tariffs rise 12%
Egypt’s electricity tariffs for residential consumers increased by an average of 12 per cent. At the same time, prices for the first consumption bracket will remain unchanged, under a new pricing structure approved by the Ministry of Electricity and Renewable Energy on Friday.
Under the new tariff, consumers using 50 kilowatt-hours per month will pay 25 per cent of their electricity bill, while the state covers 103 Egyptian pounds. At 100 kilowatt-hours, consumers will pay 30 per cent of the bill, and the state will cover the remaining 191 pounds. Consumers using 200 kilowatt-hours will pay 42 per cent of the bill, with the state covering 318 pounds.
At monthly consumption of 300 kilowatt-hours, consumers will pay 49 per cent of the actual cost and the state will cover 419 pounds. Those using 400 kilowatt-hours will pay 54 per cent, while the state covers 500 pounds. Consumers using 500 kilowatt-hours will pay 59 per cent, with the state covering 560 pounds, while those using 600 kilowatt-hours will pay 62 per cent and the state will cover 620 pounds.
Consumers using between 700 and 1,000 kilowatt-hours per month will pay 88 per cent of the actual cost of their electricity bill, while those consuming 2,000 kilowatt-hours will pay the full cost of their bill.
The ministry said the revised tariff aims to ensure the stability of electricity supply and the financial sustainability of the electricity and renewable energy system across generation, transmission and distribution. It added that the first residential consumption bracket will remain unchanged during the current period in consideration of the social impact on citizens.
The ministry said the new tariff was determined following studies and pricing assessments to balance the financial obligations of the electricity sector while taking social considerations into account.
The state will continue to bear an annual subsidy of 100 billion Egyptian pounds, representing the gap between the actual cost of producing one kilowatt-hour based on fuel prices paid by electricity generation companies and the newly approved tariff.
Attribution: Amwal Al Ghad English