Egypt Raises Commercial Electricity Prices, Links Tariffs to Fuel Costs, Exchange Rate

Egypt’s EgyptERA officially announced new electricity tariff rates for the commercial sector, which will be applied to May billing statements reflecting April consumption.

The regulator said the updated pricing structure is calculated based on a power factor of 0.92 and aligned with the official exchange rate announced by the Central Bank of Egypt (CBE), as well as fuel prices approved by the Egyptian cabinet.

In a significant policy shift, the agency confirmed that electricity tariffs will now be subject to review whenever fuel prices or foreign exchange rates experience changes, linking power pricing more directly to fluctuations in energy and currency markets.

Under the new pricing structure for commercial consumers:

Consumption from 0 to 100 kilowatts will be charged at 162 piastres per kilowatt-hour, up from 85 piastres.

Consumption from 101 to 250 kilowatts will rise to 216 piastres from 168 piastres.

Consumption from 251 to 600 kW will increase to 264 piastres from 220 piastres.

Consumption up to 1,000 kW will be priced at 274 piastres compared with 227 piastres previously.

Consumption above 1,000 kW will rise to 279 piastres from 233 piastres.

The move comes as Egypt continues broader economic reforms aimed at reducing subsidy burdens and aligning domestic energy prices more closely with international market conditions.

The decision is also expected to increase operating costs for businesses across multiple sectors, particularly amid ongoing inflationary pressures and currency volatility tied to regional geopolitical tensions and global energy market disruptions.