The Spokesperson for the Egyptian Cabinet, Mohamed al-Homsani has commented on speculations regarding the the cancellation of the electricity load reduction plan in Egypt during Eid al-Adha, stating that “This matter has not been studied yet, and if a step is taken in this regard, it will be announced immediately.”
During a phone interview with TV host Ahmed Moussa on the “On My Responsibility” show, al-Homsani added that the government is gearing efforts to improve the electricity situation in Egypt.
“We (government) are currently working to increase the resources of the Ministry of Electricity to confront electricity thieves, and it is planned to cancel the electricity load reduction by the end of this year, as (the Prime Minister) recently confirmed.’
Power cuts to return
In a significant move towards fiscal consolidation and energy market reform, Egyptian Prime Minister Mostafa Madbouly has indicated plans to gradually eliminate electricity and fuel subsidies over the next four years.
Egypt is considering buying liquefied natural gas from the markets to avoid a fuel shortage during the summer of 2024, despite the current situation in the Red Sea which poses challenges.
The Egyptian government will issue a global tender starting June to import around 15 liquefied natural gas (LNG) shipments until October to meet the country’s fuel needs, according to a government official who spoke to Bloomberg on the condition of anonymity.
The official said that Egypt is working to increase the amount of gas available in the country during the second half of 2024 to meet electricity needs during the summer.
The power outage crisis has returned, after authorities decided after the Eid al-Fitr holiday to implement a power load reduction system for two hours daily, where electricity will be cut off alternately between areas.
The Ministry of Electricity needs around 135 million cubic meters of natural gas and 10,000 tons of mazut daily to end the recurring power cuts across Egypt.
Another summer of widespread power outages is likely to increase pressure on a population already suffering from high inflation, a sharp decline in the value of the currency, and rising domestic fuel prices.
Edited translation from Al-Masry Al-Youm
