Egypt to Raise Electricity Prices for High Consumption Households and Commercial Users in 2026

Egypt’s electricity ministry has approved higher power tariffs for high-consumption households and for commercial customers, with the changes set to take effect in April 2026. The ministry announced the decision on Saturday and said the move is part of a wider plan to curb demand and reduce pressure on public finances.

 

Officials linked the decision to what they described as a major global energy crisis, which they said has been intensified by ongoing conflict in the Gulf region. The ministry said Egypt’s financial position has been affected as the cost of imported energy has risen, and it presented the new tariff structure as one element of a broader government response aimed at limiting consumption and easing the fiscal impact of higher import spending.

 

Under the plan, households with lower electricity use will not face higher bills. The ministry said residential customers consuming up to 2,000 kilowatt-hours per month will see no change in their electricity rates. For residential users in higher consumption brackets, the ministry said the average increase will be 16%.

 

Commercial customers are also set to pay more. The ministry said electricity prices for commercial users will rise by about 20% across all usage brackets, indicating the adjustment is not limited to only the highest-consuming businesses. The announcement did not provide a full breakdown of how the increases will be applied within each tariff band beyond the stated averages.

 

The tariff decision follows earlier comments from Prime Minister Mostafa Madbouly about the scale of the external shock hitting the economy. In March, he said Egypt’s energy import bill had more than doubled after the start of a conflict involving the United States, Israel, and Iran. Officials have described that jump as a key driver behind steps intended to protect public finances.

 

Officials said other measures have already been taken to address the same pressures, including fuel price increases, higher public transportation fares, and a slowdown in some state-funded projects. Egypt also began energy rationalization efforts in March, such as earlier closing times for commercial establishments, as global oil prices continued to rise.

 

While April 2026 has been set as the start date for the new electricity tariffs, several elements remain unclear. Officials did not publish the full schedule of tariff bands, the exact price levels before and after the changes, or whether additional adjustments could be made if import costs move. The ministry said the government’s objective is to reduce fiscal strain while managing electricity consumption during a period of heightened volatility in global energy markets.