Electricity prices to rise an average of 15% in FY2019-2020
Electricity prices to rise an average of 15% in FY2019-2020: Average electricity prices will rise by 15% from 1 July, Electricity Minister Mohamed Shaker told reporters yesterday. Prices for ultra-high voltage electricity used by steel and iron factories will increase by 10% on average in the coming fiscal year, while low voltage prices paid by households, stores, and small and micro businesses will increase by 19% on average. Average electricity prices increased last July by 26% for all tiers of industrial, residential, and commercial buyers as part of the Sisi administration’s plan to gradually phase out electricity subsidies.
The ministry has pushed back plans to phase out subsidies for one more year: Electricity subsidies will be phased out by the end of FY2021-2022, a year later than expected, Shaker said during the press conference. Electricity subsidies were originally due to be fully lifted in the coming fiscal year, but the date was later pushed back to FY2020-2021 to avoid placing too much pressure on consumers. The latest delay means that the government’s subsidy removal plans will take two years longer than originally planned.