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Tuesday, 9 August 2016

Electricity Ministry announces new residential, commercial electricity prices

It’s official: Your electricity bill is going to go up: Electricity Minister Mohamed Shaker announced the new tariff list for electricity at a press conference yesterday, Al Mal reported. Shaker said the cost of producing 1 kWh has increased to EGP 0.63 from EGP 0.47 this year, he added, which would have pushed the cost of subsidising electricity to EGP 40 bn if consumer prices were not increased in step. EGP 30 bn were allocated for power subsidies in the FY16-17 state budget, the minister noted. New electricity prices come into effect this month for all tiers, he said.

The new prices per kWh across the seven residential consumption tiers are:

  • 0- 50 kWh: EGP 0.11 (from EGP 0.075)
  • 51-100 kWh: EGP 0.19 (from EGP 0.145)
  • 0-200 kWh: EGP 0.21 (from EGP 0.16)
  • 201-350 kWh: EGP 0.42 (from EGP 0.29)
  • 351-650 kWh: EGP 0.55 (from EGP 0.39)
  • 651-1,000 kWh: EGP 0.95 (from EGP 0.68)
  • Above 1,000 kWh: EGP 0.95 (from EGP 0.78)

Electricity prices for commercial consumption also increased:

  • 0-100 kWh: EGP 0.35 (from EGP 0.34)
  • 101-600 kWh: EGP 0.69 (from EGP 0.58)
  • Above 600 kWh: EGP 0.96 (from EGP 0.86)

At the same press conference yesterday, Shaker also confirmed that the companies managing Siemens-built power plants are among those that could be up for IPO in the recently announced privatization program. The tariff hike is getting international coverage from Reuters.

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