(MENAFN- Daily News Egypt) Egyptian Electric Utility and Consumer Protection Regulatory Agency has prepared the electricity pricing schemes for the fiscal year (FY) 2019/20 and will be submitted to the cabinet for approval by the end of this month. Electricity ministry sources told Daily News Egypt that the increase in electricity prices will be variable according to consumption rates and income. The most affected segments of the new price increases are those consuming more than 1,000KW monthly, and this increase will be used to decrease electricity prices for low-income segments with lower consumption rates, in what is known as cross subsidisation.

The sources pointed out that the exchange rate of the pound against the US dollar and the price of natural gas is a major factor in determining the increase rate in electricity prices.

The agency set the new pricing schemes based on the US dollar exchange rate of EGP 17.5 and the natural gas price of $3 per 1 million Btu.

The government's 2014 plan aimed at phasing out electricity subsidies on all sectors gradually over the next five years, to be fully liberalised by 2019, however this period was extended to three more years in order not to overburden the citizens.

According to the Electricity Act No. 87 of 2015 and its executive regulations, the Egyptian Electric Utility and Consumer Protection Regulatory Agency is responsible for calculating the tariff of selling electricity.

The sources added that the new prices will be applied starting of July bills which are issued in August, but "low-income segments will not be affected by this increase."

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