Back to the complete issue
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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.