Electricity Minister Mohamed Shaker announced on Thursday a five-year plan to hike electricity prices in a bid to cut state subsidies for the sector, going into effect as of July.
Subsidies for the first year are at LE27.4 billion, Shaker said, which the ministry aims to decrease to LE20.2 billion by the second year, LE12.8 billion by the third year and LE4.4 billion by the fourth year, until it finally lifts subsidies altogether by year five.
The Electricity Ministry currently owes LE163 billion to the finance and petroleum ministries, Shaker said.
The plan includes an increase for those who consume 0–50 kw/h from 5 piasters to 7.5 piasters for each kw/h. The price hike will effect 6 million subscribers, according to the state-owned newspaper Al-Ahram.
Those who consume 51–100 kw/h will pay 14.5 piasters, consumers of 101–200 kw/h will pay 16 piasters, consumers of 201–350 kw/h will pay 24 piasters, consumers of 351 and 650 kw/h will pay 34 piasters and consumers of 651–1000 kw/h will pay 60 piasters.
Consumers of over 1,000 kw/h will be charged 74 piasters, an increase from the current 67 piasters.
Power cuts have become frequent in the summer months over the last few years, especially during the holy month of Ramadan.
The Ministry of Electricity has long called for austerity measures when it comes to energy consumption, including urging citizens not to use heavy-duty electronic devices between 6 pm and 11 pm, saying that the increase in temperatures negatively affects fuel supply and power.