Oct 21 9600
Egypt raises electricity prices to 38 percent in early July
The Egyptian government has decided to raise the prices of electricity consumption segments for domestic use by 3.7-3.3 percent (average of 15 percent) starting next fiscal year and starting in early July.
"It is decided to raise the price of the first tranche from zero to 50 kilowatts to 30 piasters from 22 piasters per kilowatt, up 36.3 percent," Electricity and Renewable Energy Minister Mohammad Shaker told a news conference on Tuesday.
It was decided to raise the price of the second tranche from 51 to 100 kw, to 40 piasters of 30 piasters, up 33.3 percent.
While the third tranche from 101 to 200 kilowatts, the price per kilowatt rose to 50 piasters from 36 piaster, up 38.3 percent.
The fourth tranche from 201 to 350 kw, the price rose to 82 piasters of 70 piaster, up 17.1 percent.
And the fifth tranche of 351 to 650 kw, the price of kilowatt to 100 piasters (one pound) rose from 90 piasters, up 11.11 percent.
For the sixth tranche, which ranges from 651 kW to 1000 kW, it rose to 1.4 pounds from 1.35 pounds, up 3.7 percent.
The seventh segment, which consumes more than 1,000 kilowatts, is not subsidized at a price of 1.45 kilowatts.
Egypt has begun reducing energy subsidies (oil and electricity) since 2014, as part of attempts to rationalize consumption and reduce the worsening budget deficit by cutting subsidies.
Egypt will increase its electricity consumption by 5 times over the next five years, starting in June 2014, when President Abdel Fattah Al Sisi began his first term.
The draft budget for the next fiscal year 2019-2020, the reduction of the value of electricity subsidies about 75 percent, to 4 billion pounds (235 million dollars), compared to estimated 16 billion pounds (942 million dollars) in the current fiscal year 2018-2019.
The financial year begins in Egypt in early July and will continue until the end of June of the following year, in accordance with the General Budget Law