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Electricity companies start to apply new tariff, expected to yield EGP 920m in July Shaker directs heads of distribution companies to raise collection rates, review invoices before issuance
Electricity distribution companies have started to apply new prices to the consumption tariff for all subscribers to reduce the financial burden on the sector, reduce the deficit, and continue to improve the service provided to consumers. Sources in the Egyptian Electricity Holding Company (EEHC) told Daily News Egypt that the expected result of the increase in electricity prices this month amounts to EGP 920m. The proceeds will be used for the implementation of maintenance and renovation, expansion, and development of networks and electrical equipment. The sources pointed out that Minister of Electricity, Mohamed Shaker, issued strict instructions to the heads of distribution companies at the level of the republic to raise collection rates so that the ministry can meet its financial obligations, as well as review the invoices and their compatibility with consumption for all participants. According to electricity tariffs during the fiscal year (FY) 2019/20, the household consumption tariff from zero to 50 kW/h is about 30 piasters per kW/h. Consumption from 51 to 100 kW/h is charged at 40 piasters, while consumers of 0- 200 kW/h is charged at 50 piasters. The consumption ranges from 201 to 350 kW/h is priced at 82 piasters, 351 to 650 kW/h at 100 piasters, 651 to 1,000 at 140 piasters, and over 1,000 kW/h is at 145 piasters. The increase in the electricity bill starts on the 50 kW/h consumed by about EGP 4 and up depending on the increase in consumption, while the increase in bills of 300 kW/h is about EGP 40 and the largest increase in bills will be EGP 93.5 for using over 1,000 kW/h. In an earlier statement, Shaker said the average price of electricity sold was 96.1 piasters, the average cost on the low voltage was 114.2 piasters per kW/h, and the electricity bill was not to be increased to consumers of more than 1000 kW/h. He explained that the ministry of finance continues to subsidise the electricity sector by about EGP 16.5bn during the FY 2019/20.
