The New and Renewable Energy Authority (NREA) paid EGP 180m of its EGP 3bn debt to the National Investment Bank.
Mohamed El-Khayat, head of the NREA, told Daily News Egypt that debts have been accumulating since 2007 and repayment was agreed to be rescheduled over 10 years starting this year. The NREA has thus paid the first tranche worth EGP 180m.
He explained that the lack of agreement with the National Investment Bank on the schedule of indebtedness entails an increase of indebtedness to about EGP 8bn. “We received discounts on interest of EGP 300m,” he added.
The main reason for the increase in the debts of the NREA is its inability to meet its commitments regularly, as well as the low price of energy.
The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) three weeks ago agreed on the NREA’s approval to increase its tariff by 41%.
The decision included the approval of selling energy from solar power plants and wind farms for 48 piasters, up from 34 piasters. The agreement also included reconsidering the price every year.