Egypt Independent

Electricity prices to increase July 2019: Electricity Min.



The Electricity Ministry has denied any current increase in electricity prices, adding that increases are to be expected as of July 1, 2019, according to Electricity Ministry spokesperson Ayman Hamza.

In an interview with dmc channel on Sunday evening, Hamza pointed out that Electricity Minister Mohamed Shaker clearly announces all price hike decisions in press conferences prior to implementation.

The electricity price restructuring plan aims to meet Egypt’s electricity, he said, adding that electricity subsidies would be fully cancelled in the fiscal year 2020/2021.

Minister of Electricity Mohamed Shaker had announced an increase in electricity prices in July.

Shaker stated that the price increase is vital to ensuring the continuation of the services. “If we do not increase current prices, then electricity subsides would reach LE 69 billion,” he said.

He added that despite the increase in prices, the government has been subsidizing electricity more than ever, explaining that the subsidies have increased 26.6 percent, while 25 percent of this increase has been directed to subsidize home electricity.

Last year witnessed government subsidies for electricity reaching LE 30 billion, with the kilowatt costing 95 cents, according to international gas prices. Despite that, 2017 witnessed a price hike on all consumption levels.

Meanwhile, amid the increased living costs, a parliamentary proposal to allow Egyptian citizens to pay electricity bills in installments was submitted by MP Mohamed Abdel Aziz al-Ghoul to the Prime Minister and the Minister of Electricity and Energy.

Ghoul said that the proposal, which includes installments over several months, aims at reducing the financial burden placed on citizens across different governorates, out of sympathy on the part of the state with them – especially in light of the daily cost of living (which has climbed relative to real wages in 2016).

The proposal would be a kind of cooperation between the government, represented by the Ministry of Electricity and Energy, and its citizens, to preserve the right of the state to collect bills, Ghoul continued.