The Egyptian government will hike electricity prices by up to 30 percent for households next fiscal year but will extend its plan to phase out power subsidies by three more years, Electricity Minister Mohamed Shaker said on Tuesday.
The new price hikes range from 17 to 30 percent based on consumption levels, the minister said in a televised press conference. They will take effect starting July 1 and appear on the electricity bills for August.
Egypt was initially planning to entirely phase out electricity subsidies by the end of the 2018-2019 fiscal year but extended the period until the end of the 2021-2022 fiscal year before announcing Tuesday that subsidies will be phased out even more gradually through 2024-2025.
The delay in the gradual lifting of subsidies is estimated to cost the government EGP 26.7 billion (approx. $1.64 billion), Shaker said.
The minister said that current electricity bills sometimes have errors and that the ministry was working to eliminate these errors through several mechanisms including by installing pre-paid electricity smart cards.
Here are the new rates based on tiers:
- First tier of usage: First 50 kilowatt hours (kWh) – increased from 30 to 38 piastres per kilowatt-hour (26.6%)
- Second tier: 51-100 kilowatt hour – increased from 40 to 48 piastres (20%)
- Third tier: First 200 kilowatt hour – increased from 50 to 65 piastres (30%)
- Fourth tier: 201-350 kilowatt hours – increased from 82 to 96 piastres (16%)
- Fifth tier: 351-650 kilowatt hours– increased from 100 to 118 piastres (18 %)
- Sixth tier: 651-1,000 kilowatt hours – is fixed at 1.40 piastres.
- Seventh tier: Above 1,000-kilowatt hours is not subsided and is sold for 145 piastres.
