Electricity prices fixed for the first tier; average increase of 12% for other tiers

Cairo - Hanaa El-Sayed: The Egyptian electricity services pricing system has approved a new accounting tariff for residential use and decided to keep the tariff for the first tier of the residential sector unchanged during the current phase. The system has undertaken all necessary procedures, including studies, measurements, and pricing equations, in light of the ongoing directive to consider the social dimension and alleviate the burden on citizens, thereby achieving a balance between the inevitable obligations of the electricity production, transmission, and distribution system and the determination of the new accounting tariff. The average change in the new tariff stands at 12% compared to the current tariffs for residential accounting tiers.

It is worth noting that the state bears an annual subsidy of 100 billion Egyptian pounds, representing the difference between the cost of producing one kilowatt-hour based on fuel prices paid by electricity generation companies and the newly approved accounting tariff. Under the new structure, a consumer who uses 50 kilowatt-hours pays 25% of the bill, while the state covers 103 pounds. For a consumption of 100 kilowatt-hours, the consumer pays 30% of the bill, with the state covering 191 pounds. At 200 kilowatt-hours, the state covers 318 pounds, and the consumer pays 42% of the total bill. When monthly consumption reaches 300 kilowatt-hours, the subscriber pays 49% of the cost, and the state covers 419 pounds. For a bill reflecting 400 kilowatt-hours of consumption, the consumer pays 54% of the actual cost, with the state covering 500 pounds. At 500 kilowatt-hours, the consumer pays 59% of the total cost, and the state covers 560 pounds. For 600 kilowatt-hours, the consumer pays 62%, and the state covers 620 pounds per bill. When consumption ranges between 700 and 1,000 kilowatt-hours, the consumer bears 88% of the actual total cost of the bill. However, at a consumption level of 2,000 kilowatt-hours, the consumer pays 100% of the bill value.