Egypt has increased electricity prices by over 40 per cent as it continues to work towards its plan of lifting all subsidies by the end of 2021-2022, according to the Washington Post.
Electricity Minister Mohammed Shaker said that household bills would rise between 18 per cent and 42 per cent as a result of the increase.
This is the latest in a series of austerity measures the country has taken, having last week also cut fuel subsidies for the second time since November, doubling the price of cooking gas cylinders. The adoption of a value added tax and the government’s flotation of the currency have resulted in living costs soaring.
The cuts come in the same week that Daily News Egypt reports that the Ministry of Electricity has seen a surplus of electricity production for over 11 months.
The measures are part of Egypt’s broader development plan that hopes to achieve energy self-sufficiency within two years, and lure back foreign investors who have retreated following conflict in the region.
They are also part of a bailout loan of $12 billion from the International Monetary Fund, which has left Egypt trying to comply with the global organisation’s demands for broader economic reform.