Cairo – Mubasher: Egypt is likely to raise electricity tariffs by a range between 30% and 45% for all segments next July, a top official at the electricity ministry has said.
The Egyptian Electric Utility and Consumer Protection Agency's (Egyptera) has recently completed the draft of the new potential electricity tariffs, which would be sent to the electricity ministry and the cabinet for approval, the official highlighted.
This came in line with applying the cross-subsidisation system on the largest consumers segments, according to local newspaper Shorouk News.
The new system includes imposing an annual increase in electricity tariffs in a bid alleviate the burden on low-income consumers, the newspaper added.
The source said that the electricity tariffs of the first segment are set to rise by 30% to 16 piasters per kilowatt, instead of 13 piasters.
The second segments will increase by 35% to 27 piasters, instead of 22 piasters, and the third segment will surge by 35% to 37 piasters, instead of 27 piasters.
The fourth segment will increase by 35% to 75 piasters, instead of 55 piasters, while the fifth segment will hike by 40% to 107 piasters, instead of 75 piasters.
Meanwhile, the sixth segment’s tariffs are expected to increase by 35% to 168 piasters per kilowatt, instead of 125 piasters, while the seventh segment will climb by 45% to 195 piasters, instead of 135 piasters.
On Tuesday, a government document has showed that Egypt plans to slash fuel subsidies by 26% to EGP 89.075 billion ($5.05 billion) in fiscal year 2018/19, compared to an estimated subsidy of EGP 120.926 billion in FY17/18.
The government aims to reduce electricity subsidies as well by around 47%, or EGP 16 billion ($906 million) in FY18/19, Reuters reported, citing the document.
The North African nation also seeks to raise food subsidies by 5% to EGP 86.175 billion ($4.88 billion) for the same fiscal year, the London-based new agency highlighted.
The Egyptian Cabinet had cut fuel subsidies and raised the petroleum product prices in June 2017.
