Egypt's PM revokes industrial electricity discount as of July 1
Egypt - In a significant policy shift, Prime Minister Mostafa Madbouly has issued a decree cancelling the electricity price reduction granted to industrial activities since 2020. The change, effective from 1 July 2025, marks a reassessment of Egypt's approach to industrial energy subsidies.
The now-revoked Decree No. 781 of 2020 had offered a discount of 10 piastres per kilowatt-hour for electricity supplied to industrial consumers using ultra-high, high, and medium-voltage connections—applicable both during peak and off-peak hours. Introduced during a period of economic strain, the measure aimed to support industrial competitiveness and stimulate growth.
The revocation reflects the government's renewed focus on public spending reform and fiscal consolidation, amid mounting financial pressures. The decision follows a legislative review involving the Public Finance Law and the Electricity Law, and was approved by the Cabinet.
The change is expected to affect a broad range of industrial sectors that have benefited from reduced energy costs over the past five years. With energy rates returning to standard levels, companies may be forced to reassess cost structures, production strategies, and pricing models.
No official announcement has been made regarding alternative support for impacted industries. However, the move aligns with the government's broader strategy to transition towards more targeted and economically sustainable subsidy schemes, particularly in response to global energy market fluctuations and rising production costs.
Industrial stakeholders are now watching closely to see whether the government will introduce any mitigating measures ahead of the July implementation deadline.
© 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).
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