Cairo – Mubasher: Egypt's Minister of Electricity and Renewable energy Mohamed Shaker announced the new prices for household usages on Monday, according to a press release.
The government raised the tariffs by 35-40% for the first three low consumption brackets as part of a five-year plan to gradually phase out power subsidies started in 2014, said the minister.
Moreover, the average production cost went up to 63 piasters from 47 piasters per kilowatt-hour (kw-h) during the current year, he clarified.
By applying the new tariffs, the government tries to cut the state's power subsidies at a faster pace than proposed to EGP 4 billion by 2017 and to zero by 2018.
"Electricity subsidy would reach EGP 48.5 billion by maintaining the current prices, while the government estimated the subsidy bill at EGP 12 billion for 2015/16 and EGP 29 billion for 2016/17", the minister said.
This wave of higher prices was driven by the effects of changes in FX exchange rate and the aggregate investments that the ministry has been carrying out since 2014 to strengthen the grid's capacity at EGP 75 billion, the minister indicated.
In addition, lower local production had left no space for the government but to import more has for power generation.
According to the new monthly tariffs for household usage, citizens who consume:
- up to 50 kw-h will pay 11 piasters rather than 7;
- from 51 to 100 kw-h will pay 19 piasters rather than 14.5;
- from 100 to 200 kw-h will pay 21.5 piasters rather than 16;
- from 201 to 350 kw-h will pay 42 piasters rather than 29;
- from 350 to 650 kw-h will pay 55 piaster rather than 39;
- from 650 to 1000 kw-h will pay 95 piasters rather 71; and,
- more than 1000 kw-h will pay 95 piaster rather 78.
Earlier, the bank of Egypt devalued the Egyptian pound against U.S. dollar by 13.5% to EGP 8.78/dollar.
