Egypt implements new electricity price increases as part of subsidy reform

The Egyptian government has kept electricity prices unchanged for lower-consumption residential customers while implementing significant price hikes for the commercial sector, with increases ranging from 20% to 91%, Al Ahram and other local media reported on April 4. 

The decision is part of the government's ongoing efforts to restructure energy subsidies, particularly for high consumers, without burdening low- and middle-income families. These adjustments aim to encourage more efficient energy consumption and to redistribute subsidies more effectively, with a focus on high-usage households.

The adjustments also affected the highest residential consumption brackets, with price increases between 16% and 28%. The prices for the first six residential consumption brackets remain stable. The new rates will come into effect in April 2026, with bills for these changes being collected in May 2026.

To mitigate the energy crisis caused by the halt of Israeli gas imports and surging global fuel prices due to the ongoing US-Israeli conflict with Iran, Egypt has implemented strict conservation measures, including early shop closures at 9 p.m. The government’s move is part of a broader strategy to achieve financial balance within the electricity sector, which has been facing rising production and distribution costs.

The last electricity price increase in Egypt occurred in August 2024, with residential prices rising by 14% to 40%, commercial prices increasing by 23.5% to 46%, and industrial prices rising by 21.2% to 31%.

The new prices for residential consumption are as follows: the first bracket (0 – 50 kWh) remains at EGP 0.68, the second (51 – 100 kWh) at EGP 0.78, the third (101 – 200 kWh) at EGP 0.95, the fourth (201 – 350 kWh) at EGP 1.55, the fifth (351 – 650 kWh) at EGP 1.95, and the sixth (651 – 1000 kWh) at EGP 2.10. The seventh bracket, which applies to households using more than 1000 kWh, has risen from EGP 2.23 to EGP 2.58, reflecting a 16% increase. 

In addition to the changes for residential consumers, homes with codified meters have also seen a price increase in the seventh bracket, with the cost per kilowatt-hour rising from EGP 2.14 to EGP 2.74, a 28% increase.