Hike  in electricity prices

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Electricity prices for mid-to-high household usage brackets rose  by an average of 19 percent for the 2015/2016 fiscal year. The ministry of electricity said last week.

The decision is the second phase of the government’s five year plan to phase out the electricity subsidies as a part of a wider plan to slash energy subsidies as a whole. The reduced energy subsidies which eats up to 20 per cent of the budget ,  in July last year, raising energy costs by up to 78 percent.

While households belonging to low consumption bracket was not affected by the latest rises Mid-level household usage was the most affected . According to Reuters. Prices for consumption in the 201-350 kilowatt hour (kWh) per month band increased by  over 27 percent. Household consumption in the next three highest bands rose by 19, 18, and 13.5 percent respectively.

The energy subsidies have for decades created a high consumption pattern that did not change despite Egypt moving from energy exporting to a net importer of energy in the recent year.

A shortage of natural gas, which is used by Egypt’s power stations to generate electricity, has led to persistent black outs last summer. Moreover , it reduced the flow  of gas supplies to much of the country’s domestic industry that has at times crippled production.

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