Egypt will keep tariffs unchanged for the first household consumption bracket while raising rates for other residential users by an average of 12%, Electricity and Renewable Energy Ministry says.
The ministry said on Friday that it approved the new accounting tariff “in a bid to ensure the stability of power supply and the financial sustainability” of Egypt’s electricity and renewable energy network, covering production, transmission and distribution.
Egypt covers roughly 100 billion Egyptian pounds a year (R32 billion) to bridge the gap between production costs and consumer tariffs, with the state subsidy share shrinking as household consumption increases.
Customers pay 25% of their bill at 50kWh monthly usage, rising to around 50% at 300kWh, roughly 60% at 500kWh to 600kWh, and 88% for usage between 700kWh to 1 000kWh. Households consuming 2 000kWh pay the full cost with no subsidy, according to the ministry.
Egypt had raised electricity prices for higher-use residential consumers and commercial users in April by an average of 16% to 20%, citing a global energy crisis linked to the war in the Gulf region, which more than doubled Egypt’s energy import bill.
The recent increase follows an unclaimed drone attack that caused damage to one of Egypt’s four Floating Storage Regasification Unit, prompting the government to switch to using the pricier fuel oil at a time of peak summer demand of about 37GW to39GW.
- Egypt will keep tariffs unchanged for the first household consumption bracket but raise rates by 12% for other residential users.
- The Electricity and Renewable Energy Ministry approved the new tariffs to ensure power supply stability and financial sustainability.
- Egypt subsidizes electricity costs, with subsidies decreasing as household consumption increases; heavy users pay full cost.
- Previous price hikes in April ranged from 16% to 20% due to the global energy crisis and rising energy import costs.
- A recent drone attack on a Floating Storage Regasification Unit led Egypt to switch to more expensive fuel oil amid peak summer demand.
Egypt will keep tariffs unchanged for the first household consumption bracket while raising rates for other residential users by an average of 12%, Electricity and Renewable Energy Ministry says.
Egypt covers roughly 100 billion Egyptian pounds a year (R32 billion) to bridge the gap between production costs and consumer tariffs, with the state subsidy share shrinking as household consumption increases.
Customers pay 25% of their bill at 50kWh monthly usage, rising to around 50% at 300kWh, roughly 60% at 500kWh to 600kWh, and 88% for usage between 700kWh to 1 000kWh. Households consuming 2 000kWh pay the full cost with no subsidy, according to the ministry.
Egypt had raised electricity prices for higher-use residential consumers and commercial users in April by an average of 16% to 20%, citing a global energy crisis linked to the war in the Gulf region, which more than doubled Egypt's energy import bill.
