Oriental Coast Resort Marsa Alam, affiliated to Oriental Weavers, has decided to increase electricity and water consumption charges for its customers in the resort starting from next month.
Customers will be charged EGP 3.5 per kW for electricity, up from EGP 3, while water consumption fees are to reach EGP 25 per tonne, up from EGP 20.
The main reason for this price hike is the recent increase in the electricity tariff approved by the government in July.
The decision was objected to by a number of customers, stressing the need to set a clear and transparent pricing mechanism. They also asked the company’s officials to reconsider the move.
The ministry of electricity has announced an increase in electricity prices for the fiscal year (FY) 2019/20 by 3.7-39% for households, and by 6.6-21.7% for commercial consumption. It has been applied since July.
The average increase in electricity prices for industrial and other subscribers on super high voltage is 10%, compared with 9.1% for consumers on high voltage and 9.9% for consumers on medium voltage.
The Minister of Electricity, Mohamed Shaker, said the electricity subsidies are EGP 33.5bn, of which the ministry of finance pays EGP 16.5bn, while the electricity ministry bears EGP 17bn through several resources, such as cross subsidisation.
Shaker said in a previous statement that the ministry will continue to increase electricity prices until 2022, until all subsidies are finally lifted.
He added that the government will not raise the prices of fuel supplied to power plants during the next FY, with the price of 1m BTU recording $3.