Energy Tariffs in Egypt
(2018/2019)
Historical Evolution of Tariff Reform
• Energy prices increased on three
phases;
at the
end of the third
• During
the
period
phase the prices of petroleum products reached the international
prices at this time and the prices of natural gas and electricity
1986- 1993
reached the marginal cost.
• Electricity prices were kept on hold, this led to a drop in the real
electricity prices by half during this period.
• This attributed to the increase in N.G. and HFO prices occurred in
1993-2005
1998 as well as annual increase in O/M of an average of 4.9%.
• there was an increase in electricity prices by 8.7%, 5% respectively
without a corresponding increase in the price of fuel supply to
2005-2006
electricity.
2006
• tripartite agreement signed between electricity, petroleum and
ministry of finance for electricity prices increase by 7.5% annually 5%
for electricity and 2.5% (equivalent to 9% annual increase in oil and
gas prices) during the period 2006-2013. MoF bears the difference in
prices between what has been agreed upon in the agreement and the
market prices This agreement was only applied for two years and
then put on hold
• NG for electricity has been priced according to the activities (energy intensive,
glass/ ceramics and other industries) and accordingly the electricity prices. The
2008-2010 plan was set on three phase to unify prices by the end of the third phase at
2.65US$/MMBTU then it became 3 US$/MMBTU..
2012
• Gas prices were unified as well as HFO for all usages at 44 m3 of N.G
and 2300 EGP/Ton of HFO
Gas Tariff
• In 2014 gas prices have been reformed based on cross subsidy
between activities
• Gas is priced according to the unit of heat released for large
consumers (MMBTU) and for simplicity in m3 for small consumers.
• The gas is valued in US$ since part of this gas is purchased in US$
however it is paid in the equivalent EGP.
• Gas tariff adopts cross subsidy among consumers classes
• Electricity consums around 55% of the total gas consumption
Current Oil and Gas Prices
• According to the prime Minister Decree in July 2014 oil as Gas
prices are set as follows:
• Natural Gas:
•
•
•
•
•
Power generation
3 US$/MMBTU
Fertilizers and Petrochemical
4.5 US$/MMBTU
Gas for non-energy use is set according to a formula
Cement
8 US$/MMBTU
Iron and Steel, Aluminum, Copper, Ceramics & Porcelain,
Flat Glass
7 US$/MMBTU
• Food, Textile, Pharmaceuticals, Engineering, Bricks and other
industries
5 US$/MMBTU
• Balady Bakeries for subsidized Bread
14.1 Pt/m3
Gas Tariff to Residential and Commercial
Sector
Consumption
(m3/month)
Price (pt/m3)
Up to 30
175
Above 30 and up to 60
250
Above 60
300
LPG Cylinder (12.5 kg)
NG for Car
50 EGP
2.75 per m3
Petroleum Products
• Heavy Fuel (Mazout)
• Mazout for electricity companies 3500 EGP/Ton
• -Mazout to:
• Bakeries, food industries
• Bricks factories
• For Cement
Not including transportation
• Other sectors
• Light Diesel Fuel (Sular)
• for all purposes
1500 EGP/Ton
3500 EGP/Ton
3500 EGP/Ton
3500 EGP/Ton
5.5 pt/Lit.
Impact of Fuel Prices on
Electricity Generation Cost
Fuel Cost US$/MMBTU
Cost of kWh
(pt/kWh)
($c/kWh)*
3
87.57
6
123.88
9
12
Cost of Fuel per kWh
(pt/kWh)
($c/kWh)*
4.92
27.38
3.06
6.96
45.64
5.1
162.15
9.11
64.88
7.25
205.2
11.53
89.14
9.96
* 1 US$ =17.8 L.E
Fuel is currently supplied to the power sector at different Prices
Local gas supply
3
US$/MMBTU (Currently represent around 80-82%)
Local Heavy Fuel
5.1 US$/MMBTU (Currently represents around 6-8%)
Imported gas
(between 7-9 US$/MMBTU) gas import stop since Oct. 2108
8
Electricity Tariff
• Tariff is defined according to the connecting voltage,
which are:
•
•
•
•
Ultra high voltage (UHV)
High Voltage (HV)
Medium Voltage
Low Voltage
500, 220,132 kV
66, 33 kV
22, 11 kV
380 V
• Two parts tariff as well as T.O.U is applied to Ultra
high, high and medium voltage consumers
• Inverted block tariff with closed block for poor is
applied for residential and commercial sectors