Electricity prices climb at start of 2024

CAIRO - 2 January 2024: The Egyptian Electricity Holding Company has announced an increase in electricity prices for the first time since 2021, effective January 1st, 2024.

The announcement comes soon after the government’s decision to raise Metro prices, Telecom Egypt declaring an increase in household internet prices, and telecom operators across the country upping prices on mobile tariffs.

Residential consumption brackets have now increased as follows; those consuming between 0-50 kWh will pay LE 0.58 per kWh, consumers of between 51-100 kWh will pay LE 0.68 per kWh, and those using 101-200 kWh will pay LE 0.83.

Residential homes consuming between 201-350 kWh will pay LE 1.25, while those using between 315-650 kWh will pay LE 1.40.

Commercial consumption prices were increased as well, with commercial electricity users consuming between 0-100 kWh will pay LE 0.65 per kWh, 0-250 kWh will pay LE 1.36, while users of 0-600 kWh will pay LE 1.50.

Those in the fourth consumption bracket (601-1000 kWh) will pay LE 1.65, with those using more than 1000 kWh will pay LE 1.8 per kilowatt.

The change in prices is within the government’s efforts to reduce power subsidies. Notably, the Egyptian government has postponed increasing prices since 2021, with officials stating that it was to support citizens as inflation began to climb during the pandemic’s peak.

With the new electricity prices, businesses should expect an increase in the cost of industrial production, which will lead to a predictable increase in goods and services.