Egypt’s Ministry of Electricity and Renewable Energy announced a new increase in residential electricity tariffs for 2026, including a comprehensive restructuring of consumption brackets.
The ministry kept the prices for the first bracket unchanged, while applying varying increases to the remaining brackets, averaging approximately 12 percent, in a move aims to ensure the sustainability of the electricity supply and reduce the widening funding gap.
The new strategy aims to improve collection efficiency and achieve a balance between the cost of producing a kilowatt-hour and considering the social impact.
First Bracket Unchanged
The ministry confirmed that the price of the first consumption bracket, which covers consumption from 0 to 50 kilowatt-hours, will remain at 68 piasters per kilowatt-hour without any increase.
Within this bracket, consumers continue to receive the highest level of government subsidy, reaching up to 75 percent of the actual cost of production and distribution.
Increases
Second bracket (51-100 kWh): The price per kWh increased from 78 piasters to 95 piasters, representing an increase of approximately 21.8 percent. This category continues to benefit from the discount provided for the first percent on the first 50 kWh of consumption. Third bracket (101-200 kWh): The price per kWh increased from 95 piasters to 115 piasters, representing an increase of 21.1 percent. The total consumption of the first kWh is recalculated at the price of this percent, without benefiting from the discounts of the first and second brackets. Fourth bracket (201 to 350 kWh): The price per kWh increased from 155 piasters to 172 piasters, representing an 11 percent increase. This bracket automatically benefits from the application of the third bracket’s price to the first 200 kWh. Fifth bracket (351 to 650 kWh): The price per kWh increased from 195 piasters to 218 piasters, an 11.8 percent increase. Cumulative billing continues according to the rules established for the previous brackets.The new structure included imposing prices that closely reflect or exactly match the actual cost for high consumption:
Sixth bracket (over 650 kWh): The price per kWh increased from 210 piasters to 240 piasters, representing a 14.3 percent increase. Seventh bracket (over 1000 kWh): The price per kWh increased from 258 piasters to 274 piasters (at the full cost of purchasing and producing fuel), representing a 6.2 percent increase. All previous forms of subsidies were eliminated, and subscribers are now billed directly for their total consumption, starting with the first kWh.Edited translation from Al-Masry Al-Youm
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