The Egyptian Ministry of Electricity will pay EGP 800m to the Ministry of Petroleum for fuel consumed by power plants, reported Daily News Egypt.
Sources with the Ministry of Electricity stated that the ministry was supposed to pay EGP 500m per month for fuel consumption. But as the total debt to the Ministry of Petroleum increased to EGP 80b, the two ministries agreed to increase monthly payment to EGP 800m, as the Ministry of Petroleum would like to collect part of the dues in order to continue supplying plants accordingly.
The Ministry of Electricity is pushing increase the monthly payment to be EGP 1b, after connecting gas lines for power plants implemented by Siemens as well as the increase in bill payments. This comes as Egypt monthly fuel consumption for power generation has reached, with the Ministry of Finance covering 50% of the value of consumption bills on behalf of the Electricity Ministry.