Recent electricity price hikes to reduce sector losses to LE 75B: Egypt’s PM

gypt’s Prime Minister Mostafa Madbouli has commented on the recent electricity price hikes implemented by the government, stating that the decision will help decrease sector losses to LE 75 billion, down from LE 90 billion.

The cost of the fuel used for electricity generation is purchased in US dollars, Madbouli said in press remarks, amid the foreign currency shortages and economic pressures faced by Egypt in the past two years.

On Tuesday, the Ministry of Electricity and Renewable Energy announced a 16-26 percent increase in electricity prices, effective from January 2024.

The announcement follows recent decisions by the government to raise Metro prices by LE 1-2 and by Telecom Egypt, the country’s primary telephone company, to raise household internet prices. Mobile companies have also introduced new pricing schemes.

During his press conference, Madbouli emphasized that the Central Bank of Egypt (CBE) is working to combat inflation, holding weekly meetings with the goal of reducing inflation to below 10 percent by 2025.