Page 9 - AfrElec Week 06

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NEWS IN BRIEF
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TARIFFS
Egypt’s electricity minister rejects MPs’ request to lower energy prices for local industries
Egypt’s Minister of Electricity Mohamed Shaker told MPs that he cannot approve their demand for lowering electricity prices for local factories.
“This would cost us a hefty amount of money, which could be as high as EGP10bn ($643mn),” said Shaker.
“Although electricity prices for factories increased recently, I insist that they are still lower than the rates in many countries like Turkey,” said Shaker, adding that “if I decide to lower the price per kilowatt for factories by 10 piastres, this means that I would bear a cost ranging between EGP6bn EGP10bn a year.”
Shaker’s words came in response to
calls from MPs during a meeting held
by parliament’s industrial committee on Sunday morning. Head of the committee and Alexandria industrialist Mohamed Farag Amer said there is a pressing need for lowering electricity prices in order to save local industries from collapse.
“This is a very important demand in order to stimulate industrial growth, boost exports, and create greater employment opportunities,” said Amer, adding that “it is very bad that the government subsidises electricity prices for
those who watch TV and ignore those who operate factories.”
“After the US dollar lost much of its value against the Egyptian pound over the last year, many expected that prices would drop and that the government would move to lower electricity prices.”
Amer said the high electricity prices have caused great damage to a number of vital industries.
“We have a lot of industries in the area of paper, textile, glass, and fertilisers that need protection from foreign competition, but the high energy prices in Egypt push them to the verge of collapse,” said Amer.
MP and ceramics producer Ahmed El-Sallab said the Egyptian Federation of Industries has repeatedly called on the government to lower electricity and natural gas prices by up to 25% for factories as part of a greater plan to stimulate industrial growth.
Minister Shaker said that “the more industrial production in Egypt increases the more the government becomes ready to lower energy prices.”
“Most of the electricity subsidies in
Egypt go to household consumption, which represents 86% of the total,” said Shaker, indicating that “when the more industrial consumption exceeds that of household consumption, the more it is possible to redirect subsidies to the industrial sector and we hope that this will take place in the near future.”
SUBSIDIES
Egypt’s power subsidy falls
to zero in second half of
2019
Egypt spent nothing on electricity subsidies in the second half of 2019, down from EGP7.992bn ($510.02mn) the same period a year earlier, a finance ministry semi-annual report showed.
Scaling back energy subsidies that have been a strain on the budget for decades was a central part of a three-year, $12bn reform package signed with the International Monetary Fund in 2016, Reuters reported.
The North African country has increased electricity prices for both households and industry by an average of about 15% over the 2019-2020 fiscal year that began in July.
It said its goal is to cut electricity subsidy spending to EGP4bn for the full fiscal year.
An electricity ministry spokesman did not respond immediately to a request for a comment.
The report, which was published on Monday, showed Egypt also cut its spending on energy subsidies, excluding power, to EGP9.88bn in the second half of 2019 from EGP30.17b in the second half of 2018.
GRID
Nigeria to prosecute DisCos over illegal installations, construction of electrical parts
The Nigerian Federal Government said it is considering the prosecution of power distribution companies (DisCos) and individuals who violate regulations in a bid to address poor electrical installations and construction in the country.
Speaking at the launch of a new Nigerian Electrical Installations and Construction Guidelines Manual for the distribution sub-sector, designed by Nigerian Electricity Management Services Agency (NEMSA), Minister of Power Sale Mamman insisted that offenders would be prosecuted to sanitise the industry and ensure the safety of lives and property.
Poor installations and construction had killed over 366 Nigerians due to electrocution
Week 06 13•February•2020
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