The Egyptian Minister of Electricity and Renewable Energy, Mohamed Shaker, stated that the cost of the country’s power subsidy has increased from EGP 30b to EGP 60b for the current fiscal year 2016/2017. He added that the budget submitted by the ministry and approved by the Egyptian Cabinet showed subsidies expenditure saving at EGP 18b. These moneys were to be invested in areas of development, reported Al Borsa.

Shaker explained that current economic changes that occurred in Egypt including the EGP devaluation, the fuel prices hike in addition to the value added tax have led to increase in subsidies expenditure projections.

The Egyptian government estimates that a population of 22m consume electricity from the middle class and limited income households. The government provides a 430% subsidized electricity to people using less than 50kWh, as the citizen are charged only EGP 0.11 out of EGP 0.63/kWh. Subsidies decrease with higher brackets of consumption, The government provides 310% subsidized power of up to 100kWh, 180% of up to 200kWh, 120% of up to 300kWh, 90% of up to 400kWh, and 80% of up to 500kWh.