Commercial Activities:

·        The electrical energy tariff structure is made in accordance with the same unified basis on which prices of electrical energy are set all over the world , taking the following into consideration:

 

-         Voltage levels: where prices are counted based on the UHV, getting higher as voltages decrease to add costs of the installation and operation of similar corresponding transmission and distribution networks , and the loss of energy, in this network.

 

-         Purpose of consumption: according to the different usages. Prices of the housing, commercial and public illumination uses  are set differently from the other usages (Industry, Agriculture, Public utilities, Governmental entities).

·        Since the prices of electric energy have been constant since 1992 with an increase in the prices of petroleum materials used in generating power, in addition to the increase in the world prices of Power plants and electric networks needed for the production and transmission of electricity, and since there is an increase in the salaries of employees in the country and an increase in the currency exchange rate,   the tariff for the last couple of years is not covering the costs. The electric sector offered a subsidy that reached 2.6 Billion Egyptian Pounds in 2004/2005.

·        The subsidy given to the consumers is the reason for providing electricity at an affordable price to the rural areas and the poor communities, in addition to the provision of electricity to the land reclamation projects and the small agricultural projects and other crucial industry projects 

·        Most subsidies is given for the housing consumption which is calculated according to the categories for consumption. The social consideration is taken place to reduce the load on the small electric energy consumers and increase price as the consumption increases.

Year	Subsidy
2000/2001	1786
2001/2002	2400
2002/2003	2496
2003/2004	2732
2004/2005	2610

·        The prices of electricity for houses are far less than the prices of selling electricity at many Arab countries like (Jordan- Algeria- Morocco) and other African and Asian countries which their annual income levels are similar to Egypt like (South Africa- Turkey- China- India).