Household electricity prices are to witness an increase between 18-42% for fiscal year (FY) 2017/18, as a part of reducing energy subsidies in accordance to the economic reform programme, said Minister of Electricity Mohamed Shaker in a press conference on Thursday.
According to Shaker, electricity prices are based and dependent on various factors, such as fuel prices, and the investments being injected within the electricity sector. He added that electricity prices might be increased or decreased in the next year, based on these factors.
Moreover, Shaker announced the new prices, which are divided into seven tiers: the first tier with consumption between 0 to 50KW to be 13 piastres/KW instead of 11; the second is between 51-100KW for 22 piastres/KW from 19; the third tier is that between 101-200KW for 27 piastres/KW against 21; the fourth from 201-350KW for 55 piastres/KW from 42; the fifth is that from 351-650KW for 75 piastres/KW instead of 55, sixth 651-1,000KW 1.25 EGP/KW instead of 0.95 EGP; the seventh is for consumption that is more than 1,001KW to be 1.35 EGP/KW instead of 0.95 EGP.
Shaker added that EGP 19.4bn worth of investments are allocated to improve the electricity grid, adding that, regarding production, the authorities have agreed with Siemens to construct 3 mega power plants that are currently under construction.
In FY 2016/17, the electricity subsidy bill registered EGP 64 bn—as a result of the currency flotation in November—which marked an EGP 30bn increase over the allocated amount in the FY 2016/17 budget.