Energy Egypt says hike in power prices will cut losses to $2.4bn By Reuters January 4, 2024 Reuters/Daniel Becerril Electricity prices for Egyptian households were raised by between 7.8 and 20.8 percent, depending on the usage bracket Egyptian Prime Minister Mostafa Madbouly said on Wednesday that raising electricity prices will reduce the sector’s annual losses to EGP75 billion ($2.43 billion) from EGP90 billion. Earlier this month, Egypt hiked the prices of several services including metro tickets, telecommunication services and electricity, as it tries to contain a budget deficit. Electricity prices for households were raised by between 7.8 and 20.8 percent, depending on the usage bracket, according to local media and a source at the Egyptian Electricity Holding Company. Egypt stable for now but vulnerable, economists warn Acwa Power begins work on $4bn green hydrogen project in Egypt Egypt strikes Cop28 deals to drive green energy goals Industries also saw electricity prices rise, though there has been no official announcement. Removal of power subsidies, one of the economic reforms required by the International Monetary Fund (IMF) in a series of financial support programmes, has been repeatedly delayed as Egypt has faced economic headwinds and a shortage of foreign currency. Egypt, where there is growing demand for gas from the population of 105 million, has been grappling with power shortages since last summer when heatwaves drove up demand for cooling. The government also started rationing electricity in public spaces, as well as importing more mazut fuel oil. “The fuel we use to power electricity plants is being bought using US dollars,” Madbouly noted. Egypt’s latest, $3 billion IMF programme has been stalled for months due to a lack of progress on making the exchange rate more flexible and divesting state-held assets. Year-on-year headline inflation in Egypt eased slightly to 34.6 percent in November. Egypt’s central bank has kept the Egyptian pound fixed at 30.95 to the dollar since March, but the pound has fallen to 50 to the dollar on the black market.