Egypt raises electricity tariffs for most households, shields lowest users

CAIRO – Egypt’s Electricity and Renewable Energy Ministry said on Friday that it would keep tariffs unchanged for the first household consumption bracket while raising rates for other residential users by an average of 12 percent.

The ministry said it ⁠approved the new accounting tariff “in a bid to ensure the stability of power supply and the financial sustainability” of Egypt’s electricity and renewable energy network, covering production, transmission and distribution.

Egypt covers roughly 100 billion pounds a year ($1.9 billion) to bridge the gap between production costs and consumer tariffs, with the state subsidy share shrinking as household consumption increases.

Customers pay 25 percent of their bill at 50 kWh monthly usage, rising to around 50 percent ‌at ⁠300 kWh, roughly 60 percent at 500-600 kWh, and 88 percent for usage between 700-1,000 kWh. Households consuming 2,000 kWh pay the full cost with no subsidy, according to the ministry.

Egypt had raised electricity prices for higher-use residential consumers and commercial ⁠users in April by an average of 16-20 percent, citing a global energy crisis linked to the war in the Gulf region, which more than doubled Egypt’s energy import bill.

The ⁠recent increase follows an unclaimed drone attack that caused damage to one of Egypt’s four Floating Storage Regasification Unit (FSRU), prompting the government to switch to ⁠using ​the pricier fuel oil at a time ​of peak summer demand of about 37-39 GW.