Leg­isla­tive amend­ment to add elec­tric­ity trade af­ter re­mov­ing sub­si­dies: Shaker

Con­sumer will choose en­ergy sup­plier, we will elim­i­nate in­spec­tion, mea­sure­ment fees to in­stall me­ters

The Daily News Egypt - - News - By Mo­hamed Farag Min­is­ter of Elec­tric­ity, Mo­hamed Shaker

The gov­ern­ment plans to add a leg­isla­tive amend­ment al­low­ing elec­tric­ity trade af­ter re­mov­ing sub­si­dies in the fis­cal year (FY) 2021/22.

Min­is­ter of Elec­tric­ity, Mo­hamed Shaker, told Daily News Egypt that the cur­rent elec­tric­ity law does not al­low elec­tric­ity trad­ing, while the new amend­ment will ap­prove sell­ing elec­tric­ity to con­sumers for those who do not have a net­work or pro­duc­tion plan, which he called“Elec­tric­ity Mer­chant/ Dis­trib­u­tor Sys­tem ”.

He added that the dis­trib­u­tor or elec­tric­ity dealer gets a com­mis­sion for the sale of en­ergy di­rectly to con­sumers,and con­tracts to buy elec­tric­ity at the real price,which is dif­fi­cult to im­ple­ment cur­rently due to the en­ergy sub­si­dies.

“We have no re­la­tion to set­ting prices for con­sumers.The role of the min­istry will be only to reg­u­late the mar­ket and fa­cil­i­tate free com­pe­ti­tion be­tween pri­vate sec­tor com­pa­nies in pro­duc­ing and dis­tribut­ing en­ergy,” he added.

He said that all elec­tric­ity distri­bu­tion com­pa­nies will have prices that match the cost of fuel used at pro­duc­tion sites, not­ing that a lower ex­change rate will curb the elec­tric­ity prices, where there will be no mo­nop­oly on pro­duc­tion and con­sumers will have the right to get elec­tric­ity from any sup­plier.

He stressed that the ar­eas where there is no com­pe­ti­tion due to lack of sev­eral com­pa­nies form a mo­nop­oly, which will then force the min­istry to set a fixed price.

“At present, re­new­able power plants are op­er­at­ing with the IPP sys­tem and sell elec­tric­ity di­rectly to con­sumers and pay a com­mis­sion to use the elec­tric­ity grid.”

He ex­plained that the min­istry of elec­tric­ity will make a break­through in the sec­tor af­ter re­mov­ing the sub­si­dies and gen­er­at­ing prof­its to the distri­bu­tion com­pa­nies.The fees for in­spec­tion and mea­sure­ment to in­stall pre­paid elec­tric­ity me­ters will also be waived.

He added that any con­sumer has the right to ob­tain an elec­tric­ity me­ter from any com­pany other than the distri­bu­tion com­pa­nies, pro­vided that it meets the stan­dards and spec­i­fi­ca­tions that have been set.

Shaker said that among the am­bi­tious goals that they seek to im­ple­ment is that all the elec­tric­ity sec­tor can work in a smart man­ner, with­out any com­pli­ca­tions in wrong read­ings, faults, or com­plaints.

He said that the min­istry of elec­tric­ity has com­pleted a de­tailed study show­ing the size of funds and the loans to be re­paid, as well as the fi­nan­cial needs of the sec­tor in terms of pro­duc­tion and distri­bu­tion.

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