By Ukumbi Afrika Cairo, July 31.Egypt has increased electricity tariffs for most residential consumers by an average of 12%, while leaving the lowest household consumption bracket unchanged, as authorities seek to strengthen the financial sustainability of the country's power sector.
The Ministry of Electricity and Renewable Energy said the revised tariff structure is designed to ensure a stable electricity supply while supporting the costs of power generation, transmission and distribution.
Under the new pricing regime, households in the first consumption bracket will continue to pay existing rates, shielding the country's lowest electricity users from additional costs.
Despite successive tariff reforms, Egypt still spends about 100 billion Egyptian pounds ($1.9 billion) annually to cover the gap between electricity production costs and what consumers pay.
The ministry said subsidy levels decline as electricity consumption increases. Customers using 50 kWh per month pay roughly 25% of the actual cost of electricity, while those consuming 300 kWh cover about 50%. Consumers using 500–600 kWh pay around 60%, and those consuming 700–1, 000 kWh bear approximately 88% of the cost. Households consuming 2, 000 kWh monthly pay the full production cost without government subsidies.
The latest increase follows an earlier tariff adjustment in April, when Egypt raised electricity prices for higher-consumption residential and commercial users by 16–20%, citing rising global energy costs linked to the Gulf conflict, which sharply increased the country's fuel import bill.
Pressure on Energy Supply
The latest tariff revision also comes as Egypt faces additional strain on its energy system after an unclaimed drone attack damaged one of the country's four Floating Storage Regasification Units (FSRUs).
The incident forced authorities to rely more heavily on fuel oil, a more expensive alternative, to meet peak summer electricity demand estimated at 37–39 gigawatts (GW).
The government says the revised tariffs are intended to help maintain reliable electricity supplies while reducing the financial burden on the state as energy costs remain elevated.
Source: Reuters
Reporting: Enas Alashray, Muhammad Al Gebaly & Mohamed Ezz
Editing: Mark Porter & Alistair Bell