CAIRO: Prime Minister Ibrahim Mahlab issued a Monday decree to raise the electricity prices gradually during the next five years starting from July 2014 until the beginning of 2018, Al-Masry Al-Youm reported.
The electricity bill will be obtained according to the consumption and electricity usage categorized into seven sectors.
President Abdel Fatah al-Sisi discussed the budget with the Ministers of Finance, Trade, and Planning to talk about the budget deficit. They also discussed finding probable solutions of decreasing the budget without confrontation with the public opinion.
“I cannot ratify such budget that features more than 300 billion EGP in deficit and surges public debts to more than 2 trillion EGP,” Sisi said during the graduation ceremony of a new batch of Military Academy cadet on June 24.
The first aspect of rationing expenses is represented by lifting a large part of subsidy, restructuring the wages system, and decreasing transfer expenditures, former head of the Sadat Academy for Management Sciences Abdel Muttalub Abdel Hamid had previously told The Cairo Post in June.
Minister of Planning Ashraf al-Araby announced in a press conference held in June that the prices of fuel and electricity will rise as soon as possible to face the budget deficit, Al Jazeera Mubasher reported.
Araby said that increasing fuel and electricity prices could affect prices of food, goods, and services.
The continuous power cut during the past few months caused public outrage among citizens, which resulted in several measures by the Ministries of Electricity, Planning, and Petroleum to confront the crisis.
The Ministry of Electricity announced early July that they are waiting on a government decision to begin the use of nuclear power to general electricity, Youm7 reported.
The ministries council had agreed to install solar energy panels on thousands of governmental bodies as well, Ministry spokesperson Mohamed Yamany said in a phone interview with Nile News Television Channel.
The government will begin “strict procedures” to reduce the consumption of electricity in all governorates by 20 percent, Minister of Local Development Adel Labib said last week in a press release.
The government will pump 1,800 megawatts of electricity into networks while simultaneously searching for alternatives such as solar energy and wind to generate electricity, Al-Ahram reported last week.
According to Mahlab’s decree, the first sector for electricity consumption ranges from 0 to 50 megawatts and will be worth 7.5 piasters for each kilowatt during the current year. It will increase to 9 piasters in the second year, and increase to 10, 11, and 13 piasters for each year during the next three years.
The seventh sector will be for those consume more than 10,000 megawatts and will be amounted at 74 piasters during the current year, 78 piasters, 81 piasters to reach 86 piasters in the fourth year.