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Reducing electricity prices for households not likely, but exempting segments is possible: sources - Daily News Egypt

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Reducing electricity prices for households not likely, but exempting segments is possible: sources

Subsidies in current fiscal year are EGP 33.5bn


The government will not reduce the prices of electricity for household use, but some segments may be exempted from the price increase scheduled for July,, government sources told Daily News Egypt.

The sources noted that household electricity consumption accounts for 42.7% of total use, while subsidies for electricity this fiscal year amount to EGP 33.5bn, including EGP 16.5bn from the Finance Ministry and EGP 17bn secured through the electricity sector partially through mutual subsidies by the 6th and 7th segments of consumption.

The sources pointed out that the depreciation of the US dollar and the decline in oil prices could contribute to leaving tariffs unchanged, which will be settled before end of April.

The sources stressed that the government took a decision to reduce the prices of electricity to factories on the ultra-high, medium and high voltage by 10 piasters to support the factories against the global difficulties  and the outbreak of Coronavirus.

The government had approved an increase in electricity prices for the fiscal year 2019/2020 by between 3.7 to 39% for household segments and from 6.6 to 21.7% for commercial segments.

The ministry subsidises consumers in segments as follows: EGP 41 for first, EGP 77  for second, EGP 122 for  the third, EGP 133 in the fourth, EGP 149 in the fifth, and EGP 165 in the sixth.

The sources pointed out that the increase in prices will be slight and will not affect the low-income brackets  and it will be variable according to the consumption rates, with continued mutual support from the intensive consumers to the less-consuming groups.

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https://dailyfeed.dailynewsegypt.com/2020/03/23/reducing-electricity-prices-for-households-not-likely-but-exempting-segments-is-possible-sources/
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