Egypt’s unpaid electricity dues rose to 310 billion Egyptian pounds by the end of July, prompting the Ministry of Electricity and Energy to threaten power cuts to some institutions that are behind on their payments, according to a senior finance ministry official speaking to Al-Manassa.
The same official, who is familiar with the public budget setting process, previously explained to Al-Manassa that electricity arrears had increased markedly. They rose from 191 billion pounds in Jan., to 278 billion pounds by mid-July, he added.
Among the entities warned of possible disconnections are tourist establishments in Sharm el-Sheikh and Hurghada, as well as Egyptian National Railways, the official said, requesting anonymity.
The cautionary notice will also affect several affiliate companies of public enterprises, including firms in the fertilizer, textile, steel, pharmaceutical, and water sectors. The Ministry of Religious Endowments is also slated to experience similar cuts.
Some government and private entities paid about 70 billion pounds early this month after the Electricity Ministry complained to the Cabinet, which then directed state agencies to speed up debt payments, the official said.
The electricity and finance ministries are coordinating on a repayment plan that channels some dues directly from the state treasury and deducts the rest from agency budgets, they added.
“Accumulating debts at this scale hinders the electricity ministry from paying amounts due to petroleum and gas companies, which are the main suppliers of fuel used to operate power plants,” the official said. “It also affects maintenance and development plans that require continuous liquidity to preserve grid efficiency and ensure stable electricity supply.”
Early this year, media reports said the petroleum ministry receivables from the electricity ministry had risen to more than 205 billion pounds.
Against this background, the official confirmed the government's intention to raise electricity tariffs “soon”, thereby easing the mounting fiscal pressures. This is part of a wider target to phase out energy subsidies entirely by fiscal year 2026/2027.
Media reports indicate that electricity prices are expected to rise in the first quarter of the current fiscal year. This follows last August’s increase of 14% to 50% for households using prepaid meters.
