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EGP 700m cleaning fees in electricity bills in 2016 - Daily News Egypt

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EGP 700m cleaning fees in electricity bills in 2016

Distribution companies obtain a 5% commission from the collection rates 

The Ministry of Electricity received EGP 700m in cleaning fees from local councils, included in electricity consumption bills for 2016.

Sources at the Ministry of Electricity said that the electricity distribution companies signed contracts with the provinces. As per these contracts the electricity distribution companies allocate monthly cleaning fees, and supplies them to provinces with a 5% collection commission.

The sources added that the value of the cleaning fees supplied to the local councils varies from month to month, according to the type of activity. The supply is carried out on a monthly basis, the supplied fees of November were worth EGP 55m, and EGP 60m in December.

The electricity distribution companies in north and south Cairo, and North Delta registered the highest value of cleaning fee allocations, especially as they include areas and neighbourhoods with high living standards such as Sheikh Zayed, 6th of October City, Nasr City, and Heliopolis.

The sources explained that the Egyptian Electric Utility & Consumer Protection Regulatory Agency is not monitoring cleaning fees as it is not part of their dues.

Former head of the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) Hafez Salmawy said that the basis of cleaning fee collection is a result of a study conducted by the Ministry of Environment about the relationship between waste and the standard of living. The ministry linked them to the electricity consumption rates. The ministry concluded that high standards of living entail more wastes.

The ratios of consumption bills were determined accordingly, and linked to neighbourhoods and electricity consumption levels. Electricity distribution companies are taking over the collection of cleaning fees from all consumers, and supply it to the local councils.

According to the law, the authority that collects payments of another ministry or authority must obtain a maximum 10% commission of the total value.

Salmawy explained that the Ministry of Electricity provides the cleaning fees commissions to the distribution companies, as it is included in the design items, office works, and overtime. The commission is not a major financial source for the Ministry of Electricity.

The electricity distribution companies suffered after adding the cleaning fees to electricity consumption bills, as consumers refused to pay for it and did not welcome the idea.


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