Egypt will increase electricity tariffs by up to 42 percent this fiscal year for households but keep energy subsidies in place three years longer than expected, Electricity Minister Mohamed Shaker said on Thursday, 6 July, 2017.
The government has been looking to phase out electricity subsidies entirely by the end of the 2018-19 fiscal year beginning in July, but Shaker said tough economic conditions brought on by the floating of the pound currency in November, 2016 means the subsidies will be phased out more gradually, by the end of 2021-22.
In a press conference announcing the new electricity tariffs, Shaker said Egypt spent 64 billion Egyptian pounds ($3.58 billion) on electricity subsidies during the 2016-17 fiscal year which ended in June, more than twice the 30 billion initially expected in the budget, largely a result of higher import costs for liquefied natural gas (LNG), which supply its power stations, following the float.
The price increases, will take effect beginning August 2017 and are announced to be as follows:
Usage/Load | Demand Change
EGP/kW/ month |
Tariff
EGP/ kWh |
Off-peak
EGP/kW/ month |
Peak
EGP/kW/ month |
Ultra-high | 30 | 67.6 | 62.4 | 93.6 |
High | 40 | 70.9 | 65.4 | 98.2 |
Medium | 50 | 76.7 | 70.8 | 106.2 |
Low | – | 90 |