• Egypt freezes residential electricity tariffs until January 2026

• Inflation eases; subsidies keep power below actual cost

• Industrial, EV charging tariffs adjusted amid fiscal pressures

Egypt will not raise residential electricity tariffs before January 2026, Electricity Minister Mahmoud Esmat announced, according to local media reports on Sunday. The decision follows weeks of speculation about possible price hikes amid fiscal pressures.

The freeze comes despite persistent inflation, which has begun to slow after two years of sharp increases. According to Focus Economics and the national statistics bureau CAPMAS, the average annual inflation rate reached 28.3% in 2024, down from 36% in 2023. Disinflation continued in 2025, with the rate falling to 16.8% in May, 13.9% in July, and 12% in August.

Residential tariffs have not changed since the last review in August 2024, which saw increases ranging from 14% to 50%, depending on consumption tiers.

While residential rates remain fixed, the government implemented two targeted adjustments earlier this year. In May 2025, the tariff for electric vehicle charging stations was adjusted to include a 45% margin over the supply cost. Then, on July 1, 2025, the government ended a tariff reduction granted since 2020 to industrial companies, which had previously benefited from a reduced rate of approximately 0.10 Egyptian pounds per kilowatt-hour.

Electricity subsidies currently stand at approximately 170 billion Egyptian pounds (about $3.6 billion), as the government continues to sell power below its actual cost, local media reported. Natural gas supplied to power plants is priced at $4 per million British thermal units (MMBtu), while its real cost exceeds $7.

With domestic gas production, the primary driver of the country's electricity generation, declining, the government faces pressure to quickly secure lower-cost alternatives.

Abdel-Latif Boureima