Cairo, Aug. 21, 2024 – A massive increase in the price of electricity is on the cards for households in Egypt as the country gradually phases out subsidies.
Raises will range from 14.45 per cent to 50 per cent, depending on the consumption bracket of individual homes.
For households with prepaid meters, the increase came into effect on Saturday, while people with regular meters will see rates go up from 1 October.
The gradual phase out of electricity subsidies is part of an agreement with the International Monetary Fund to expand Egypt’s loan programme to $8 billion.
However, the government has had to repeatedly postpone the increases as the country faced economic pressures.
At the start of the summer, the raise was delayed as Egypt grappled with power shortages, with high cooling demand driving up consumption.
It resorted to load-shedding to prevent a collapse of the grid, saying it needed to import around $1.18 billion of natural gas and mazut fuel oil to end the long-running cuts.
Egypt generates most of its electricity by burning natural gas. (Africa News)
