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Wednesday, 23 November 2016

Egyptian government may slow down phase-out of electricity subsidies

Gov’t may slow down phase-out of electricity subsidies: The Electricity Ministry is re-calculating the cost of electricity subsidies and of power generation in the wake of both the float of the EGP and of rising of fuel prices, said the ministry’s Undersecretary Sabah Mashaly. Mashaly tells Al Borsa that this could involve rescheduling the five-year plan to eliminate subsidies. Electricity Minister Mohamed Shaker had previously stated that the float and rising fuel prices might see the ministry’s subsidies bill double to EGP 60 bn this year. Mashaly does not comment on how the process might impact feed-in tariff rates for renewable energy agreed with the private sector, especially considering that a number of companies were lobbying for rate changes last week. As we noted yesterday, the Ismail cabinet will form a committee to look into repricing contracts signed prior to the float.

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