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Wednesday, 15 May 2019

Home electricity prices could rise 30-60% in July as Egypt phases out subsidies

Residential electricity prices could increase by 30-60% after the next round of subsidy cuts that will take place at the start of the next fiscal year in July, Electricity Ministry officials tell Al Mal. All households and businesses will face a price hike with the potential exception of businesses in the agriculture sector. Anyone else want to look into rooftop solar panels?

Prices will rise the least for households in the highest consumption brackets as they already receive no subsidies and purchase electricity at a price higher than that of the global market, the newspaper says. Those in the lower consumption tiers will bear the largest increases.

Details out soon: We cited local news reports on Monday that the ministry is expected to officially announce the new rates by the end of the month, but Al Mal’s sources say the announcement will be made in mid-June. We’re keeping our ears to the ground and will publish a breakdown when new details emerge.

Background: Egypt raised its average electricity prices for all tiers of industrial, residential, commercial consumers by an average of 26% last July as part of the plan to gradually phase out electricity and fuel subsidies. The plan began in FY2015-2016 with the launch of the IMF-sanctioned economic reform program and is now approaching its fifth, and penultimate round. Electricity subsidies were originally due to be fully lifted this coming fiscal year, but the period was extended to FY2020-21 to avoid placing too much pressure on household budgets.

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