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EgyptERA sets grid fees for electricity producers, distributors via bilateral contracts - Daily News Egypt

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EgyptERA sets grid fees for electricity producers, distributors via bilateral contracts

Fees reach 3.26 piasters per kw/h on ultra-high voltage, 8.43 piasters for high voltage, 10.83 piasters for medium voltage

The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) announced electricity grid fees for producers via bilateral contracts with consumers.

Sources familiar with the matter told Daily News Egypt that the fees for using the national grid on ultra-high voltage reach 3.26 piasters per kw/h, including 1.99 piasters for transmission and 1.27 piasters for the coverage of electrical losses arising from electricity transport.

The sources pointed out that grid usage fees on high voltage is 8.43 piasters per kw/h, and 10.83 piasters per kw/h on medium voltage.

According to the Electricity Law, each consumer has the freedom to choose an electricity supplier, where the market relies on free competition. The qualified subscribers can contract with licensed electricity producers or distributors via bilateral contracts.

A large number of companies are seeking to implement renewable energy projects under the IPP system, which involves the investor selling the electricity produced directly to its customers through the national electricity grid for specified fees, using an independent product system.

However, the delay in announcing the grid fees has postponed many power projects until the identification and approval of fees.

The sources added that the EgyptERA agreed to increase the contractual capacity on the medium voltage with electricity distribution companies to 30MW instead of 20MW.

This decision comes in the light of the development of the components of distribution networks and the expansion of geographical scope of distribution companies, the diversification of consumption patterns, technological development, and increase of consumers as well as the consequent requests from contractors on electric feeding on medium voltages 11 and 22 kV with distribution companies.

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