Egypt Raises Electricity Tariffs For High-Use Households, Businesses

Egypt hikes electricity tariffs for heavy users and businesses as rising energy import costs strain public finances

Egypt has increased electricity prices for higher-use residential consumers and commercial users beginning in April, as authorities respond to mounting pressure from a global energy crisis linked to the Gulf region conflict.

The electricity ministry announced the move on Saturday, describing it as part of broader efforts to curb consumption and stabilise the country’s strained finances.

“Egypt has raised electricity prices for higher-use residential consumers and commercial users starting in April, the electricity ministry said on Saturday, citing a severe global energy ‌crisis linked to the war in the Gulf region.

The move is the latest in a series of steps by the government to curb energy use and contain mounting fiscal pressure as higher import costs strain the finances of the Arab world’s most populous country.

It said electricity prices for residential consumption bands of up to 2,000 kilowatt-hours per month would remain unchanged, while tariffs for higher residential brackets would rise by an average of 16%. Commercial electricity prices across all ‌brackets ⁠would increase by an average of about 20%, it added.”

The ministry said the pricing adjustment is structured to shield lower-consumption households, while targeting higher-use segments and commercial users to maintain electricity supply across sectors.

Under the revised tariffs, residential users consuming up to 2,000 kilowatt-hours monthly will not see any increase. However, those in higher consumption brackets will face an average rise of 16%, while businesses across all categories will see tariffs climb by about 20%.

Prime Minister Mostafa Madbouly had earlier indicated that Egypt’s energy import bill has more than doubled since the outbreak of the conflict involving the United States, Israel and Iran, prompting urgent fiscal measures.

These include increases in fuel prices, higher public transport fares, and delays to some state projects as the government attempts to manage growing financial pressure.

Authorities have also introduced conservation measures, such as earlier closing hours for commercial venues, in a bid to reduce energy demand as global oil prices continue to rise.

Egypt’s economic challenges are compounded by a heavy debt burden, with interest payments consuming about half of government spending this fiscal year. Inflation also remains elevated, having peaked at 38% in September 2023 and continuing in double digits.