Wednesday, 22 May 2019

Electricity prices to rise an average of 15% in FY2019-2020

Electricity prices to rise an average of 15% in FY2019-2020: Average electricity prices will rise by 15% from 1 July, Electricity Minister Mohamed Shaker told reporters today. Prices for ultra high voltage electricity used by steel and iron factories will increase by 10% on average in the coming fiscal year, while low voltage prices paid by households, stores, and small and micro businesses will increase by 19% on average. Average electricity prices increased last July by 26% for all tiers of industrial, residential, and commercial buyers as part of the Sisi Administration’s plan to gradually phase out electricity subsidies. A detailed account and breakdown available here (pdf)

The new pricing structure for household customers:

  • 0-50 KWh per month: prices will go up 33% to EGP 16/month, with the state paying a total of EGP 41.1/bill in subsidies;
  • 51-100 KWh per month: prices will go up 32.1% to EGP 37/month, with the state paying a total of EGP 77.2/bill in subsidies;
  • 101-200 KWh per month: prices will go up 36% to EGP 106/month, with the state paying a total of EGP 122.5/bill in subsidies;
  • 201-250 KWh per month: prices will go up 28.8% to EGP 152/month, with the state paying a total of EGP 133.6/bill in subsidies
  • 251-300 KWh per month: prices will go up 26% to EGP 193/month, with the state paying a total of EGP 149.7/bill in subsidies;
  • 301-350 KWh per month: prices will go up 24.4% to EGP 234/month, with the state paying a total of EGP 165.8/bill in subsidies;
  • 351-400 KWh per month: prices will go up 21.5% to EGP 288/month, with the state paying a total of EGP 169/bill in subsidies;
  • 401-450 KWh per month: prices will go up 19.9% to EGP 338/month, with the state paying a total of EGP 176.1/bill in subsidies;
  • 451-500 KWh per month: prices will go up 18.7% to EGP 388/month, with the state paying a total of EGP 183.2/bill in subsidies;
  • 501-550 KWh per month: prices will go up 17.7% to EGP 438/month, with the state paying a total of EGP 190.3/bill in subsidies;
  • 551-600 KWh per month: prices will go up 17% to EGP 488/month, with the state paying a total of EGP 197.4/bill in subsidies;
  • 601-650 KWh per month: prices will go up 16.5% to EGP 538/month, with the state paying a total of EGP 204.6/bill in subsidies;
  • 651-700 KWh per month: prices will go up 14.6% to EGP 618/month, with the state paying a total of EGP 181.7/bill in subsidies;
  • 701-750 KWh per month: prices will go up 13.3% to EGP 688/month, with the state paying a total of EGP 168.8/bill in subsidies;
  • 751-800 KWh per month: prices will go up 12.4% to EGP 758/month, with the state paying a total of EGP 155.9/bill in subsidies;
  • 801-850 KWh per month: prices will go up 11.6% to EGP 828/month, with the state paying a total of EGP 143/bill in subsidies;
  • 851-900 KWh per month: prices will go up 10.9% to EGP 898/month, with the state paying a total of EGP 130.2/bill in subsidies;
  • 901-950 KWh per month: prices will go up 10.8% to EGP 968/month, with the state paying a total of EGP 117.3/bill in subsidies;
  • 951-1000 KWh per month: prices will go up 9.9% to EGP 1038/month, with the state paying a total of EGP 104.4/bill in subsidies;
  • Average consumption higher than 1,000 KWh per month will stay at EGP 1491.5/month, with the state paying no subsidy.

The ministry has pushed plans to phase out subsidies: Electricity subsidies will be phased out by the end of FY2021-2022, a year later than expected, Shaker said during the press conference. Electricity subsidies were originally due to be fully lifted in the coming fiscal year, but the date was later pushed back to FY2020-2021 to avoid placing too much pressure on household budgets. The latest delay means that the government’s subsidy removal plans will take two years longer than originally planned.

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