Last Update 21:35
Sunday, 15 September 2019

Egypt's cabinet approves law privatising electricity production, transmission

In wake of recurrent energy shortfalls, Egypt will gradually push energy production, distribution and transmission to the private sector over the coming five years

Ahram Online , Wednesday 18 Feb 2015
More than 15 nationwide power stations have halted electricity generation due to shortages of fuel(Photo: Reuters)
Views: 5323
Views: 5323

Egypt’s cabinet approved Wednesday a law privatising electricity production, distribution and transmission, reported the state-owned news agency MENA.

The law limits the state role in the electricity sector to regulation and supervision and separates activities of production, transmission and distribution to ensure competitiveness in the private sector.

Egypt has been suffering from an acute energy crunch as foreign oil companies suspend extraction works on the back of growing arrears as political turmoil took hold in the aftermath of a popular uprising in 2011. Parts of the national grid are also in need of renovation.

Egypt's government slashed energy and electricity subsidies mid-2014 in a move to reform the country's budgetary imbalance and ultimately eliminate energy subsidies.

"Initially, there will be two markets: one competitive and one in which prices are set by the state. But with the gradual liberalisation of electricity prices over the coming five years, the competitive market will expand to include more consumer segments," Hafez El-Salmawy, head of the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) told Ahram Online Tuesday.

Last September, the government set feed-in tariffs at which it would buy electricity generated by the private sector via renewable energy with plans for renewable sources to provide 20 percent of Egyptian energy production by 2020.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.