Ministry of Electricity will hold preparatory meetings to determine electricity prices for the fiscal year (FY) 2018/19, Mohamed Shaker, minister of electricity, told Daily News Egypt on Sunday.
He added that the planned increase in prices would be based on the prices of the fuel supplied to power plants, the average cost of a kilowatt, and the dollar exchange rate.
“The decline in the dollar exchange rate would reduce the rate of increase in prices, but will not prevent the price increases,” said Shaker.
He added that the plan is to gradually reduce electricity subsidies, while taking into consideration low-income groups and the most needy when determining the rates of increase in electricity prices each year.
He said that Egyptian Electrical Utility and Consumer Protection Regulatory Agency (Egypt ERA) will take into account the real cost of producing a kilowatt and the appropriate profit rate of the state, which enables it to return the value of its investments and earn profits.
Furthermore, he explained that when the Beni Suef, New Administrative Capital, and Brulus power plants enter service, they will provide $1.5bn annually, while solar power stations in Aswan will reduce the value of fuel used in conventional electricity power plants.
He explained that a number of Russian experts are present at the Dabaa Nuclear Power Plant site to complete the preparation of designs and studies, and that no portion of the Russian loan for the plant has been released yet.
The nuclear plant consists of four nuclear units with a total capacity of 4,800 MW. The first unit is expected to be completed for primary delivery and commercial operation by 2026, and the second, third, and fourth units should be completed by the end of 2028.
On the other hand, Shaker pointed out that the ministry plans to expand electricity transmission networks through a plan to increase the number of medium-voltage distributors, transformers, lines, and cables until the end of 2018 at a cost of EGP 22.5bn.