Egypt’s Ministry of Electricity announced a 16% to 26% increase in electricity tariffs starting January 2nd, marking the latest step in the government’s gradual removal of power subsidies.
The move, reflected in February’s electricity bills, comes after a three-year delay in the government’s initial plan to fully eliminate subsidies by July 2022. As before, the price hike is tiered based on household consumption.
The revised pricing structure for households is as follows:
- 0-50 kWh: EGP 0.58 per kWh (up from EGP 0.48)
- 51-100 kWh: EGP 0.68 per kWh (up from EGP 0.58)
- 101-200 kWh: EGP 0.83 per kWh (up from EGP 0.77)
- 201-350 kWh: EGP 1.25 per kWh (up from EGP 1.06)
- 351-650 kWh: EGP 1.40 per kWh (up from EGP 1.28)
- 651-1000 kWh: EGP 1.50 per kWh (up from EGP 1.40)
- 1000+ kWh: EGP 1.65 per kWh (up from EGP 1.45)
The government said it aims to achieve energy efficiency, encourage responsible consumption, and boost resources for the electricity sector through the price hike.
However, the potential rise in industrial production costs could lead to increased consumer prices for goods and services.
“The increase in electricity prices will remain within reasonable limits,” the government assured, pledging measures to mitigate the impact on low-income citizens.
While the government originally planned to eliminate subsidies by July 2022, the implementation timeline has been extended three times. The latest increase aligns with ongoing efforts to streamline energy subsidies and improve fiscal sustainability.
The price adjustments are likely to generate mixed reactions. For some, it signifies progress towards cost efficiency and responsible resource management. Others may be concerned about the potential burden on household budgets and businesses.
