(MENAFN - Daily News Egypt) The Electricity Regulatory Authority (ERA), and the Consumer Protection Authority (CPA) will be settling the new electricity prices within two months, and they will come in force by July.
Government sources told Daily News Egypt that the committee, formed from the Electricity Holding Company, the ERA, and the CPA, is preparing proposals and scenarios for the increase in electricity tariffs. The final form which is to be presented to the cabinet has not been decided yet.
The sources explained that the needier segments will be taken into consideration. An increase in the tariff will be for households by 18-22%, while 30-40% will be for factories with an expected gradual increase.
Another proposal also includes settling on higher prices for those who consume more than 1,000kW. The price difference will go to the needier segments, which is a system applied this fiscal year (FY).
The last increase in the electricity tariff this FY included a 20.9% increase for the low voltage tariff, 30.0% for medium voltage, 40.9% for high voltage, and 41.8% for ultra-high voltage. The number of people who will be receiving electricity are 26.6 million, who consume 76.4bn kW/h.
The sources added that the exchange rate of the pound against the dollar, and the increase of the price of natural gas are the main factors in determining the increase in the tariff to sell electricity, as the committee has based its proposals and studies on an EGP 17.5 as the dollar price. The price of natural gas is $3m for each thermal unit. It is very likely to see changes in these numbers which could result in a modification to the increase.
The government's plan in 2014 was to gradually eliminate electricity subsidies for all sectors in five years in order to apply full liberalisation by 2019, however, the subsidies period was extended to three years as citizens cannot bear additional burdens.
According to Electricity Law No 87 for year 2016 and its executive regulations, the ERA and the CPA are responsible for calculating the value of the economic tariff for selling electricity.