Egypt electricity consumption and subsidy structures

Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, reported that residential consumption accounts for approximately 38% to 40% of the country's total electricity usage. The domestic sector is divided into seven consumption tiers, with subsidies ranging from 24% to 88%. Approximately 7 to 8 million subscribers benefit from the first two tiers, which receive the highest levels of support. Esmat noted that consumers in the first tier bear only about 24% of the actual cost, while those in the third tier bear roughly 40%.

Regarding prepaid meters, former head of the Electricity Regulatory Agency, Hafiz Salmawy, clarified that the timing of recharging a meter does not influence the consumption tier or the applied tariff. Total costs are determined by the volume of electricity used and the established rates. Salmawy also addressed the use of 'coded meters' for buildings with unauthorized electrical connections and noted that meter readers are now required to photograph readings to prevent estimation errors.

Minister Esmat added that sudden increases in prepaid meter charges are often due to consumers moving into higher consumption tiers or changes in service fees. He mentioned that redesigning the tariff system to restart each tier from zero could potentially increase ministry revenues by approximately 17 billion Egyptian pounds.