Electricity bill hikes save Egypt from LE 33.5 billion deficit: Min.
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Shaker said that the electricity sector will face a deficit of up to LE 33.5 billion ($1.97 billion) in the new fiscal year if the electricity prices are not raised.
The national strategy to gradually remove the electricity subsidy starting from 2015 was set to end in 2019. However, the political leadership extended the plan to 8 years instead of 5, to be completed by July 2021.
Moreover, an urgent plan has been set up to complete replacing all traditional meters with prepaid meters within 5 years, Shaker said, adding that the ministry seeks to change 20 million meters during this period.
The electricity tariff is provided by the Consumer Protection Regulatory Agency (EgyptERA) and the Cabinet, said Shaker.
The new prices, according to the minister, come as part of the government’s economic reform program, as follows:
Housing use:
First bracket: From 0 to 50 kilowatts = (30 piasters up from 22).
Second bracket: From 51 kilowatts to 100 = (40 piasters up from 30).
Third bracket: From 0 to 200 kilowatts = (50 piasters up from 36).
Fourth bracket: From 201 to 350 kilowatts = (82 piasters up from 70).
Fifth bracket: From 351 kilowatts to 650 = (100 piasters up from 90).
Sixth bracket: From 651 to 1000 kilowatts = (140 piasters up from 135).
Seventh bracket: From 0 to more than 1000 kilowatts will have no subsidy (145 piasters)
The minister affirmed that the government is making extensive efforts to complete developing the electricity sector, noting that the development of the transmission and distribution networks are planned to be completed by 2024.
The development of the electricity networks takes a lot effort and time, the minister said, affirming that completing the development process within five years is a great achievement for the electricity sector.
The Ministry of Planning granted the electricity sector LE 1.7 billion ($99.95 million) to replace all overhead power lines to ground lines, Shaker added.
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