Electricity ministry’s debts to the Egyptian General Petroleum Corporation (EGPC) reached EGP 150 billion at the end of November 2018, governmental sources told Al Borsa News.
The Egyptian Electricity Holding Company (EEHC) pays between EGP 8 billion and EGP 10 billion annually in exchange for fuel consumption in electricity generating plants. The paid amount is low compared to the arrears owned to EGPC, the sources pointed out.
EEHC plans to increase the amounts paid annually starting 2019 to be not less than EGP 15 billion per year, in order for EGPC to be able to provide demands.
The Egyptian government had formed a committee to solve financial disputes between different ministries, especially between the Ministry of Petroleum and the Ministry of Electricity. The committee is working on scheduling payments to prevent debts increase.