CAIRO, Aug 3 – Egypt has approved a new household electricity pricing structure, with tariffs increasing by an average of 12% across most residential consumption categories as the government seeks to support the country’s power system and keep the electricity sector financially sustainable.
Under the revised structure, the tariff for the first residential consumption bracket will remain unchanged. However, households in the remaining consumption bands will pay higher rates than before.
The authorities said the new prices were based on cost studies and calculations. They added that social considerations were also taken into account to reduce the financial impact on households while covering the basic costs of generating, transmitting and distributing electricity.
Despite the increase, the government said it will continue to cover a large share of the actual cost of electricity as it estimates that it spends about LE100 billion each year to bridge the gap between production costs and the tariffs paid by consumers.
For households using up to 50 kilowatt-hours a month, consumers pay about 25% of the actual cost, while the government covers LE103. At 100 kilowatt-hours, households pay 30%, with the state contributing LE191.
The government’s support continues across higher consumption levels. Households using 200, 300, 400, 500 and 600 kilowatt-hours pay between 42% and 62% of the actual cost, with the state covering the remaining balance.
Meanwhile, households consuming between 700 and 1,000 kilowatt-hours pay 88% of the actual cost. Those using about 2,000 kilowatt-hours a month will continue to pay the full cost of their electricity consumption.
