Egypt raises electricity prices by more than 40 percent

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Egypt raises electricity prices by more than 40 percent

Post by DJKeefy »

Egypt on Thursday raised electricity prices by more than 40 percent, its latest move on the road to lifting all subsidies and complying with demands by the International Monetary Fund for a $12 billion bailout loan.

The hike, though widely anticipated, is likely to further deepen the economic woes of most Egyptians as they struggle in the face of steep price rises heralded by the floatation of the local currency in November and the partial lifting of fuel subsidies.

The rise, announced by the electricity minister, came a week after the government raised gasoline prices by up to 55 percent and doubled the price of the household staple butane canisters, used for cooking.

The minister, Mohamed Shaker, said the new charges would apply as of July. Households would pay up to 42 percent more while the price of electricity for companies and other commercial consumption was raised by up to 46 percent.

Ahead of the latest hikes, President Abdel-Fattah el-Sissi approved a package of measures benefiting middle and lower class Egyptians, including income tax discounts, bonuses for state employees as well as increases in pensions and ration card subsidies.

The decisions are part of broader economic reforms taken to meet demands by the International Monetary Fund for a $12 billion bailout loan. Other austerity measures were taken in order to qualify for the loan, including the introduction of value-added tax and the currency floatation.

The government embarked on the economic reform program soon after el-Sissi took office three years ago. The program significantly accelerated late last year, when the currency was floated, causing the Egyptian pound to lose half its value and leading to a significant hike in prices.

Source: The Associated Press


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Re: Egypt raises electricity prices by more than 40 percent

Post by newcastle »

As with previous hikes, the percentage increase is higher for higher levels of consumption. This will come as some relief for the poorer element of the population...who are seldom blessed with aircons, swimming pools etc.

According to the new price hike, households consuming 0-50 KW will be charged LE 0.13 instead of LE 0.11, an increase of 18 percent. Consumers of 51-100 KW will pay an extra 3 piasters at LE 0.22, instead of LE 0.19, marking a 15 percent increase.

The third tranche witnessing increase is for Egyptians consuming from 0 to 200 KW. They will be charged LE 0.27, up from LE 0.21, an increase of 25.5 percent.

The fourth tranche for consumers using 201 to 350 KW will be charged at LE 0.55, up from 0.42, a 30 percent increase. Users between 351 to 650 KW will be charged LE 0.75, up from LE 0.55, marking a 37 percent increase.

Customers in high consumption tiers using 651 to 1000 KW will pay LE 125, an increase of 35 percent, compared to a previous LE 0.95. The highest consumption tier from zero to more than one thousand kilowatts will be charged LE 1.35 instead of LE 0.95 piasters, marking the highest increase of 42 percent. ... ree-years/

Of course there will be a knock on effect for everyone as the higher costs of industry feed through to consumer prices...but the effect on inflation is projected to be modest.

As Hafiz commented elsewhere, there's bugger-all anyone can, or is likely to, do in practice.

All part of Sisi's master plan to impose modern economic theory on Egypt ...before the honeymoon is over and the hoi polloi begin to seriously question their new master.

As a 24/7 aircon enthusiast with a pool, I expect to be clobbered.

Quite right too!

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Re: Egypt raises electricity prices by more than 40 percent

Post by Dusak »

I can envisage many new lengths of cable cascading down from upper floor windows onto the main power lines in the near future. :lol:
Life is your's to do with as you wish- do not let other's try to control it for you. Count Dusak- 1345.

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Re: Egypt raises electricity prices by more than 40 percent

Post by Major Thom »

And locked doors, closed shutters when bills are brought around. :lol:

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