Egypt is entering a new phase of energy adjustment. The Ministry of Electricity and Renewable Energy has announced an increase in electricity tariffs of up to 20% for large consumers and the commercial sector, effective from April 2026.
In a statement, the ministry justified this decision by the growing pressure of the global energy crisis, worsened by ongoing tensions in the Gulf region. However, it specified that 86% of users will not be affected by this measure, as tariffs will remain unchanged for consumption below 2,000 kilowatt-hours (kWh) per month.
For higher consumption brackets, the average increase is around 16%, with the tariff rising from 2.33 to 2.58 Egyptian pounds per kWh.
Meanwhile, prepaid meter users are facing a more significant increase, estimated at 28%, bringing the unit price to 2.74 pounds compared to 2.14 previously, according to several local media outlets. This change has not been detailed by the authorities.
The commercial sector is also affected, with a general increase in tariffs estimated at nearly 20% on average.
These adjustments come amid a structural imbalance in the energy sector. Last March, President Abdel Fattah al-Sisi stated that the country records an annual deficit of around 500 billion pounds (approximately $10 billion), due to electricity being sold below its production cost.
The head of state also noted that Egypt spends nearly $20 billion annually on petroleum products, mainly used to fuel power plants.
This new tariff increase is part of an ongoing policy of gradually reducing energy subsidies, initiated in recent years. A previous increase in August 2024 had already significantly impacted large consumers.
