Manufacturers could catch a break as gov’t looks set to announce new electricity prices for industry today: Industrial producers could see their electricity bills fall in the state’s new fiscal year, which starts in July, government sources told the domestic press. Businesses in the medium, high, and ultra-high consumption tiers could see prices decrease as authorities do not wish to see high energy prices affecting the sector’s competitiveness — or prompt manufacturers to raise prices, the sources said. Manufacturers in the highest consumption tiers are already paying at a rate that effectively subsidizes lower-tier customers.

Prices will rise for households and commercial clients: The government denied last week reports that households could be subject to a 30-60% price hike in the coming fiscal year. While the reports out so far have not commented on that range, the domestic press suggests households will face price hikes of EGP 5-200 price depending on consumption.

Electricity Minister Mohamed Shaker is expected to announce the new rates at a presser scheduled for today, according to Masrawy.

Background: Egypt raised its average electricity prices by an average of 26% for all tiers of industrial, residential, and commercial buyers last July as part of the Sisi administration’s plan to gradually phase out electricity 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 in the coming fiscal year, but the period was extended to FY2020-2021 to avoid placing too much pressure on household budgets.