Egypt has announced electricity tariff increases of up to 42% to meet demands by the International Monetary Fund (IMF) for a $12 billion bailout loan.
According to Medhat Fouda, the company’s chairperson, funds will be used toward the replacement of distribution panels, improvement of the main and secondary lines, the establishment of new medium voltage distributors and feeders.
In addition, Fouda noted that it will contribute toward the strengthening of the electricity grids of cities and villages.
The company works on providing electricity to all citizens in the New Valley, Fayoum, Beni Suef, Minya, and Assiut governorates, by replacing damaged cables to secure delivering the electricity supply, Daily News Egypt reported.
The Electricity minister, Mohamed Shaker said the new tariffs would be implemented as of July.
He said Egyptian households could be in for an 18-42% higher bill depending on the category and level of their consumption but some of the subsidies would remain in place, PressTV reported.
Business Hilights gathered that under the IMF-devised austerity plan, Cairo is obliged to cut subsidies as a condition to receive installments of the three-year loan.
But Shaker argued that “We were supposed to have been completely done with the (electricity) subsidy in the current and next fiscal year”.
“But considering the special situation related to the large increase in the exchange rate, we extended this period to an additional three years.
As part new drive to raise energy network in Egypt, the ministry earmarked $33 million to the Central Electricity Distribution Company in the 2017/2018 budget.
