Minister of Electricity Mohamed Shaker announced on Tuesday an increase in electricity prices effective July.
Shaker stated the price increase is vital to ensure the continuation of the services, “If we do not increase current prices then electricity subsides would reach 69 billion pounds.”
He added that despite these increase in prices, the government has been subsidizing electricity more than ever, explaining that the subsidies have increased 26.6 percent. 25 percent of this increase has been directed to subsidize home electricity.
The minister also said that is a good deal compared to the recent price increase in natural gas, adding that Egypt has managed to buy gas at lower than world prices, “We buy natural gas to produce the Egypt’s electricity for $3 per 1 million MmBTU.”
Consumers get a fair deal according to Shaker, since the country subsidizes most of the electricity cost away,
“What consumers pay for 50 KW of electricity does not exceed 18 percent from the cost of electricity. 100 kw costs LE 123 to produce, consumers pay between LE 28 and LE 95, meaning people pay 23 percent of the actual cost,” he explained.