Ever since Nourhan Mohamed learned about the second electricity bill hike within a year, she has taken drastic measures, such as reducing microwave use and swapping her automatic washing machine for a regular one. The Egyptian government recently started collecting electricity bills for August, and Nourhan was hit with a bill of 1,600 EGP after the latest increase. “The bill is exorbitant. I used to pay between 500 and 700 EGP in summer, and 200 to 300 EGP in winter, based on our consumption,” she lamented.
Nourhan criticized the steep hike, stating, “my consumption is less than usual, yet the bill is still very high.” The household’s monthly income is 10,000 EGP, with Nourhan earning 4,000 EGP and her husband 6,000 EGP, equating to roughly 210 USD. According to Fitch Ratings, this places her in the first income category with an annual income below 5,000 USD, classifying her as low-income.
Nourhan is at a loss as to how she will cope with the successive increases. Since the start of the year, prices for the internet, mobile phones, the metro, and subsidized bread have all risen, along with gasoline and diesel, impacting transportation costs. She expressed her frustration, saying, “how much more can we cut back our expenses?” adding, “I know people wo have stopped using electrical appliances like electric kettles and irons altogether, and have resorted to heating water on the stove instead.”
Two Price Hike in a Year
The Ministry of Electricity and Renewable Energy has announced a second increase in electricity prices for domestic use within the same year, with rates rising between 17% and 50%. This new pricing will take effect from the current September bill, reflecting last August’s consumption.
The government employes a bracket system for calculating electricity bills, dividing monthly home consumption into seven tiers. The cost per kilowatt-hour (kWh) rises with higher consumption, a strategy intended to support the lower income families and discourage high energy use by increasing the cost for higher brackets.
Following the latest hike, the first bracket (0-50 kWh) is priced at 68 piasters per kWh, up from 58 piasters, making it the most affordable tier with the highest level of support. Prices continue to escalate with increased consumption. Notably, when usage exceeds 650 kWh (the sixth bracket), the rate jumps to 2.10 EGP per kWh, up from 140 piasters. The seventh bracket, for consumption exceeding 1,000 kWh, now costs 2.23 EGP per kWh, a 35% increase, and no longer receives any subsidy.
During a press conference las August, Prime Minister Mostafa Madbouly clarified that the support for lower brackets would be funded by payments from higher consumption brackets. He emphasized that the increases for the lower brackets would be minimal, with the first three brackets seeing a rise of just 10 to 12 piasters. Meanwhile, the bracket representing the middle class experienced an increase of about 25 piasters.
Shock After Shock
However, the reality on the ground paints a different picture. Alaa Shehata, a government employee and widow with two children residing in Akhmim Town, was stunned when she received her electricity bill, which soared to 700 EGP. This unexpected expense severely impacted her household budget, leaving her unsure of “how to pay for my children’s school supplies.” Previously, her bill ranged between 250 and 300 EGP, with an average monthly family income of about 5,000 EGP.
Similarly, A’ish Mohamed, a resident of Tahta Town, expressed her frustration over the latest electricity bill, which amounted to around 950 EGP for August. Although her previous bills were not insignificant, “I used to pay a bill ranging from 700 to 800 EGP per month,” the recent increase was a substantial burden. A’isha had been trying to cover the electricity costs using her husband’s salary, “at first, I thought there was an error until the collector explained to me the bracket system and the recent price hikes.”
A'isha was taken aback by the collector’s explanation and asked, “how will I be able to save this amount every month?” with no immediate solution in sight, she resorted to further attempts at conserving electricity. The 40-years-old said, “this bracket system is a disaster for all households, particularly those reliant on a single income.”
The Bracket System
The electricity pricing system for residential use comprises seven brackets, while the industrial and commercial sectors have five brackets. The Egyptian government has long employed this bracket system for electricity billing, where prices rise with increased consumption.
The recent electricity price hikes are part of the conditions imposed by the International Monetary Fund (IMF) to release tranches of an extended 8 billion USD loan to Egypt. The IMF completed the third review of the loan last July and stated, “restoring energy prices to subsidy-free levels, including fuel prices, by December 2025 is essential to support the smooth provision of energy to the population and reduce sector imbalances.”
Prime Minister Mostafa Madbouly explained that the new price increase aims to bridge the gap in the government’s fuel bill for operating power plants.
On Wednesday, MP Evelyn Matta, a member of the Industry Committee in the Parliament, submitted a proposal to the Ministry of Electricity, Engineer Mahmoud Esmat. The proposal addressed the increase in electricity prices and the withdrawal of amounts from prepaid meters upon charging. She emphasized the need for government oversight to balance the cost of production and electricity consumption.
In her statement, Matta highlighted that the rise in electricity prices would consequently lead to higher costs for products and transportation.
Ongoing Worries Over Price Hikes
Hoda Jibaly, a 37-year-old housewife from Sohag City, experiences monthly anxiety over her consistently high electricity bills. Her worry intensified upon hearing about the decision to increase prices within the brackets. "I kept wondering how much the electricity bill would be this month," she expressed.
In August, Hoda paid a bill of 450 EGP, an increase from her usual range of 300 to 350 EGP, despite her efforts to conserve energy. She suggested that the only solution might be to forego essential appliances like microwaves, air conditioners, and televisions. Hoda described the bracket price increase system as "a disaster for every middle-income family," highlighting her difficulty in adapting to the rising costs across all aspects of life.
Hani Sabry, a family head and government employee who also runs a commercial store, explained that electricity prices for residential use differ from commercial rates. "The cost of the same amount of electricity in my shop is higher than at home," he explained. Hani believes that his government salary alone, without the income from his shop, would not suffice to cover the electricity bill alongside other obligations. He predicts that the upcoming price increases will be difficult and unbearable for those who rely solely on their salaries. Despite his efforts to conserve electricity, Hani's electricity bill for his home and shop rose from 1,000 EGP to 1,500 EGP, reflecting his concerns about the new wave of price hikes.
In January, the Ministry of Electricity announced a 10% to 22% increase in electricity prices, effective until June, in preparation for further hikes as part of the plan to completely lift electricity subsidies. This plan had been postponed three times, from July 2022 until the end of the previous year, due to economic conditions.
Prime Minister Mostafa Madbouly stated in May that he had tasked the former Minister of Electricity, Mohamed Shaker, with preparing a gradual four-year plan to increase electricity prices, indicating that the increases would persist. By the end of July, Madbouly announced that "the Egyptian government has developed a 4–5-years plan to liberalize electricity prices, and the low-end brackets will not be significantly affected."
