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Preparations for significant increases in electricity prices in Egypt

An informed source in the Egyptian Ministry of Electricity and Renewable Energy revealed a draft decision to increase electricity prices in the country, which was submitted to the Prime Minister’s Office.
A vision was drawn up to increase the segments to support low-income segments, pointing out the necessity of announcing the increase due to the losses incurred by the Ministry as a result of the difference between the cost price of kilowatts and the price sold to the consumer as a result of the rise in gas prices, pointing out that the expected percentage increase in electricity segments may range between 27 % to 40%.
The source said that it is expected to announce an increase in electricity prices with the announcement of the end of the load shedding crisis, which is scheduled to end in the last week of this July.
Egyptian Prime Minister Mostafa Madbouly held the first meeting after announcing the new ministerial formation to follow up on the measures being taken to solve the electricity problem and stop load shedding.
He noted that work has been done to secure the dollar resources required to solve the power outage crisis and to soon announce the cessation of load shedding, and we are setting the most pessimistic scenarios for the presence of any developments or shocks.
He also explained that after the sudden crisis in the electricity sector, a plan was drawn up to secure the strategic reserve and provide about $1.2 billion to solve the electricity crisis during the coming period, explaining that closing stores is part of an energy rationalization policy to confront the power outage crisis.
Egypt is suffering from a shortage in gas supplies, which has led to a wave of power outages and the forced temporary closure of chemical and fertilizer factories.
The Egyptian Natural Gas Holding Company (EGAS) has ordered the delivery of 17 LNG cargoes, including 7 cargoes in July, 6 in August, and 4 in September on a delivery-by-ship (DES) basis, with deferred payments of up to 6 months.
Supplies of natural gas, which helps Egypt generate electricity, have dwindled as its population of 106 million people and urban growth have increased, leading to increased energy needs, while high demand for cooling during the summer leads to increased consumption, according to Reuters.

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