Electricity Ministry set to decide on new tariff increase this month

The Ministry of Electricity will decide on the increase in electricity prices this month and will be applicable starting July.

Sources at the ministry said that the Electricity Regulatory Authority (ERA) and the Egyptian Electricity Holding Company (EEHC) are close to finalising the new tariff and it will be issued by the board of directors of the ERA, which is chaired by Electricity Minister Mohamed Shaker.

The sources added that the tariff will include 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.

The sources said that the increase will be applied on the basis of income and expenditure, which show the proportion of per capita expenditure on electricity and indicated that spending on electricity in the highest segment is below 4% of income. So the new scheme will adopt a cross-subsidisation system.