CAIRO – The Egyptian government has postponed the implementation of new electricity tariffs that were set to take effect on July 1, 2023. The delay is a response to the economic pressures of national currency decreased value and rising fuel prices, which have significantly burdened the government’s budget.
A source from the Ministry of Electricity and Renewable Energy revealed that the prices announced since 2020 will be completely revised, the new price increases are deemed essential and will be applied by the end of this month for old meters, both mechanical and electronic. As for prepaid meters, the application will commence once the new tariffs are officially announced.
The Ministry is currently awaiting the Cabinet’s decision to approve the increase. Despite the delay, it is certain that electricity prices will rise in the near future, the source emphasized that the proposed increases came after an extensive study of the economic conditions, including changes in exchange rates and increases in natural gas prices and petroleum materials used in various electricity production and generation processes.
The application of the increase has become inevitable after the government obtained the last loan from the International Monetary Fund, which has stipulated several times to lift the subsidy on electricity. This move is seen as a necessary step to address the economic burdens faced by the Ministry, including the increase in loss rates resulting from the rise in electricity theft in some areas.
The Ministry has completed all preparations within the commercial affairs and systems sectors of various companies to apply the programs with the increases once they are approved or postponed. The government is expected to make a decision soon, and consumers are advised to prepare for the upcoming changes in electricity prices.
