The total value of electricity consumption bills registered EGP 5.3bn in December 2016, EGP 3.7bn of which was collected by electricity distribution companies.
Sources at the Ministry of Electricity said that the residential and commercial sectors are two of the most committed sectors to paying the consumption bills, with a rate reaching 75%, while the arrears the official bodies owe are increasing.
The sources added that the gap between the electricity distribution companies’ revenues that should have been collected and what was actually collected is EGP 1.6bn. This amount has not been paid by a number of ministries and official bodies, which raises the debts of government bodies owed to the Electricity Ministry to EGP 89bn.
Sources also said that Minister of Electricity Mohamed Shaker issued instructions to the heads of the distribution companies to increase the rates of collection in order for the sector to be able to fulfil its commitments. The distribution companies are seeking to increase the collection rates to reach 85% during the current month.
Head of Middle Egypt Electricity Distribution Company Medhat Fooda said that the company’s rates of collection of consumption bills in December reached 98%, and that the company has been achieving the highest rates of collection over the past six months.
He explained that the company has been coordinating with the Ministry of Finance and other concerned bodies to pay the arrears owed by government bodies in instalments. Such measures are conducted throughout the year with the Finance Ministry.
The Middle Egypt Electricity Distribution Company serves five governorates—Minya, Beni Suef, New Valley, Fayoum, and Assiut. The number of subscribers in the Fayoum governorate is roughly 596,000, and in Beni Suef roughly 607,000. The Minya governorate has an estimated 820,000 subscribers, while Assiut and New Valley have 867,000 and 81,000 subscribers, respectively.
Head of the Canal Company for Electricity Distribution Mohamed El-Sayyed said that the rates of consumption bill collections in the residential sector in December reached 90%.
He added that the company is also coordinating with the Finance Ministry and other governmental bodies to pay arrears in instalments.
The Canal Company for Electricity Distribution serves the governorates of Sharqeya, Ismailia, Port Said, Suez, Red Sea, North Sinai, and South Sinai, in addition to the cities of 10th of Ramadan, El-Shorouq, Badr, and New El-Salhiya. The Haikstep area also falls under their jurisdiction.
A source in the South Cairo Electricity Distribution Company said that the rates of collection at the company from the residential sector in December reached 85%. The source added that the company has suffered delays in their collection, partly because citizens believe electricity prices have increased, which the source said was untrue.