According to an Al-Borsa article published today, electricity consumers will pay the real cost of kWh after the full subsidy cut. Yesterday, Al-Borsa had cited government sources saying that the ministry expects the cost per kWh of extra-high voltage to be around EGP0.75, high voltage to be around EGP0.79, and medium voltage to be around EGP0.95, while the cost per kWh of low voltage is to be EGP1.14. We note that the production cost of low voltage is much higher than the rest of power voltages, which indicates a reshuffle in tariff cost based on an expected FX rate of EGP17.50-17.78/USD and a natural gas price of USD3.00/mmBtu. It is expected that a pricing review will be carried out every three or six months to account for any change in the above estimates.
For more details, please read the full report below.