Government to decide on new electricity rates by May-end
Government to decide on new electricity rates by the end of May: The Egyptian Electrical Utility and Consumer Protection Regulatory Agency (Egyptera) has completed scenario planning for a hike in residential electricity prices expected by the start of the government’s next fiscal year starting in July, the local press reports. Cabinet is expected to sign off on the new rates by the end of this month. Households with the highest monthly consumption levels will once again face the sharpest price increases.
Background: The Finance Ministry expects spending on subsidies to drop to EGP 312 bn, from EGP 332 bn in FY2019-20 budget on the back of the subsidy cuts. The government has raised prices by an average of 26% since last July as part of its plan to phase out electricity subsidies. Subsidies were originally due to be lifted in FY2019-20 but the period was extended to FY2020-21 to avoid placing too much pressure on household budgets.