The cost of the production of electricity is expected to increase by 40% following the flotation of the Egyptian pound on Thursday.
The former managing director of the Egyptian Electric Utility and Consumer Protection Regulatory Agency, Hafez Abdel Aal El-Salmawy, said that fuel accounts for 60% of the cost of producing electricity, which is expected to increase by 40%. He explained that the cost for production 1 KW of electricity before the flotation stood at EGP 0.38 for fuel and EGP 0.34 for operations, noting that this cost will increase by nearly EGP 0.2.
He added that the cost for one million BTUs of gas will range between $5.5 to $6, highlighting the benefit of using gas in power plants.
Moreover, he said that long-term debts obtained by the Ministry of Electricity will also be impacted by the exchange price.
The Central Bank of Egypt announced this morning that it would amend the price of the US dollar against the national currency, leaving it to float freely with a guiding price of EGP 13.