The Egyptian Ministry of Electricity will decide on the increase in electricity prices which will be applicable starting from July 2017. Sources at the ministry said that the Electricity Regulatory Authority (ERA) and the Egyptian Electricity Holding Company (EEHC) are close to finalizing the new tariff. The tariff will be issued by the board of directors of the ERA, which is chaired by Electricity Minister, Mohamed Shaker, according to Daily News Egypt.
Moreover, the sources added that the tariff will be applicable on all segments, but at different levels based on consumption and average income. Noting that the subsidy will continue for five more years, even though it was planned to be removed completely in 2019.
Furthermore, the source said that the production cost of electricity in financial year 2017/2018 will increase, especially as the tariff in 2016/2017 was based on an exchange rate of EGP 8.88 to the US dollar, while the exchange rate has now hiked to EGP 18. As a result, the cost of producing electricity surged to EGP 0.95 per 1 kWh, up from EGP 0.637 in the current fiscal year. The original price restructuring program included a cost of EGP 0.475.