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Egypt: ministry to implement new billing structure

The Egyptian Ministry of Electricity has announced that monthly consumption bills will adjust to include a new fee with effect from July.

The adjusted billing structure has incorporated a new fee to accommodate the energy efficiency service.

Ministry of Electricity sources told Daily News Egypt that the expected revenue from energy efficiency fees in the next fiscal year amounts to EGP 168.9 million ($9 million), which will then increase to EGP 176.5 million ($10 million) in FY 2019/2020, then to EGP 184.4 million ($10.3 million) in FY 2020/2021, media reported.

Energy Efficiency Fund

According to the sources, electricity distribution companies are required to deposit all acquired funds into the Energy Efficiency Fund, a bank account at the Central Bank of Egypt (CBE).

In the event of delay, an interest shall be added equivalent to the annual interest rate declared by the CBE.

According to the sources, the rate of fees for improving energy efficiency is calculated on every kWh of electricity sold to consumers, after the approval of the Egyptian Electrical Utility and Consumer Protection Regulatory Agency (Egypt ERA).

An agreement shall be concluded with Egypt ERA to enlist this as part of the tariff calculation to be equal across all consumers and segments

The sources noted that the Energy Efficiency Fund will support a high-efficiency lighting programme for ‘small’ consumers of less than 200 kWh per month, a programme to improve energy efficiency in schools and government buildings, the deployment of solar heaters, in addition to training, capacity-building, and contribution to the loan guarantee mechanism. Read more…

Replicable model

With an estimated 96% of Egyptians connected to the grid, electricity consumers will be the main beneficiaries of energy efficiency activities, both directly and indirectly.

According to the ministerial sources, this model has been implemented in various European countries, adding a ratio of 1-4% of the value of the tariff in return for the service to boost energy efficiency.

 

Featured image: Stock

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.

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