The spokesman for The Electricity Ministry, Ayman Hamza, said that the ministry is repricing electricity following the increase in fuel prices as a result of the EGP flotation. The move comes as the government is determined to take reformatory actions to which it is committed on conditions of obtaining a $12b extended fund facility from the International Monetary Fund (IMF).  A delegation from the IMF is in town now as a prelude to the disbursement of the loan’s second tranche, El Shorouk informed.

In February 2016, The Electricity Ministry, Mohamed Shaker,  had announced an ambitious five-year plan to eliminate power subsidies by 2025. Additionally,  the IMF staff report released last month on Egypt’s $12b bailout noted that the government is committed to completely lift electricity subsidies over the next five years. The Electricity Ministry has last hiked electricity prices in August 2016 for residential and commercial consumption as production costs increased.