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Thursday, 16 March 2017

EEHC committee wants to extend lifting of electricity subsidies

In other energy news this morning, the state electricity utility is pushing back on the schedule for the phase-out of subsidies, but will still hike prices by as much as 40% in July. The Egyptian Electricity Holding Company (EEHC) committee tasked with studying new electricity prices for FY2017-18 is set on extending the timeline for the phase-out of electricity subsidies, unnamed sources from the Electricity Ministry tell Al Borsa, providing exactly zero further details. The committee’s decisions are far from sacrosanct, and it is preparing several suggestions and scenarios for the price hikes to present to Cabinet. The Ismail government has committed to completely lifting electricity subsidies over the next five years, according to the IMF staff report on Egypt’s USD 12 bn bailout. On the flipside, the sources say that there is no backing down from hiking electricity prices in July, further suggesting that price hikes will vary by consumption tier. The committee is reportedly suggesting increasing prices by an initial 40% for top consumption tiers, and gradually bringing up the rate of increase to 60%. Those using the least electricity would reportedly see a 10-25% bump.

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