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No subsidies for high power consumption

The Minister of Electricity Ahmed Imam announced that households with high power consumption might not enjoy subsidies in the future.
In an attempt to benefit households with low income and electricity consumption, the ministry set the high consumption level at 650 kW, according the German-Arab Chamber of Industry and Commerce.

The Ministry stated yesterday that it will not implement higher tariffs for any segment of society.

Beltone Financial announced that in the past four years, Egypt had faced a number of difficulties in the electricity-sector, such as higher household consumption, shortage of power products and lack of security.

With a capacity-deficit of 3,000 mW, investments of about EGP30 billion are needed. According to Beltone Financial, the ministry reactively imported large amounts of mazut to overcome the production bottleneck.

No official increase in tariffs was announced, yet, several household complained of higher bills in the past months. The last official rise in tariffs lay at 7.5% in January 2013.

The government is looking at renewable energy solutions, as it plans to produce about 20% of Egypt’s power through wind and solar energy by 2020.