Egypt plans to take a long-delay decision to increase electricity prices over the coming five years to compensate for the increased cost of production as part of its plan to restructure the energy system, according Sabah Mashaly, the first undersecretary for development at the Ministry of Electricity.
Despite the increase in the value of the US dollar, the ministry of electricity has resisted increasing the price of electricity.
The cost of production for one kilowatt-hour is currently EGP.79 while the sale price is EGP.39.
President Abdel Fattah Al-Sisi has previously stated that the electricity sector requires an investment of $13bn over the next five years.
Ministry of Electricity has issued a new feed-in tariff system for new and renewable energy projects, which has introduced investor interest.
The Ministry of Electricity has not listed its former subsidiaries on the Egyptian Exchange. However, the ministry will require these companies with a capital investment of EGP 10bn. The company will decide whether to offer them via IPO afterward.