Egypt’s Minister of Electricity Mohamed Shaker said that the proposals for new electricity pricing were presented to the cabinet and approved on 30 May and adopted on 4 June.
He added that the average economic cost of producing electricity is 104 piastres per kW.
According to the minister of electricity, the average increase in electricity prices is 26%.
The new electricity pricing scheme, which will be enforced starting from the coming fiscal year (FY), in July, is as follows:
From 0-50 kW: price increased to 22 piastres from 13.
From 51-100 kW: price increased to 30 piastres from 22.
From 0-200 kW: price increased to 36 piastres from 27.
From 201-350 kW: price increased to 70 piastres from 55.
From 351-650 kW: price increased to 90 piastres from 75.
From 651-1,000 kW: price increased to 135 piastres from 125.
Above 1,000 kW: not subsidised and costs 145 piastres.
Shaker said that for every $1 increase in the global price of fuel, it costs Egypt an additional EGP 40bn in electricity subsidies.
In 2017, the price per kW was at 95 piastres, based on global fuel costs. This is the average cost per kW worldwide. The state subsidised electricity with EGP 30bn last year.
Meanwhile, Shaker noted that the ministry will add some 25,000 MW to the national grid by the end of 2018.
He added that the sector was able to add about 4,350 MW in the past few months.
The minister pointed out that the installed combined-cycle power plants being prepared will improve efficiency by up to 50%.
He said that the total capacity produced from the Siemens power plants so far has reached 13,600 MW, with 800 MW to be added by the end of this month.
For her part, Sabah Mashaly, the Electricity Ministry’s first undersecretary for performance development, said that the expected savings for the state from the hike amount to EGP 30bn.
Mashaly noted that subsidies for the household sector are the biggest of all allocations, EGP 37bn, in the coming FY 2018/2019, including a sum of it given by the Ministry of Finance to increase the capitals of electricity companies.