Two days ago, The Energy Pricing Committee approved an increase of  15 percent in energy prices  for Non Energy Intensive Industries. The new price of natural gas will be 2 US dollars per million thermal units.

The price of natural gas for Energy Intensive Industries including Iron, Cement, Aluminum, Copper and Fertilizer Industries (which consume 60 % of energy allocated to the Industrial Sector) will remain at 3 US dollars per million thermal units.

The price of electricity will increase by 50 percent at peak time, as specified by the Ministry of Electricity. The aim is to rationalize consumption and reduce the pressure on power stations.

Minister of Trade and Industry, Rachid Mohamed Rachid added that the new Pricing System takes into consideration the prices of energy in neighbouring countries and the real cost of producing energy. It also takes into account the Government’s decision to gradually reduce the Energy Subsidy.

Rachid said in a statement yesterday, that the Committee (with members from the Electricity, Petroleum, Investment and Finance Ministries) will submit a report to Prime Minister Ahmed Nazif.  The report will include these changes.  Once it has been approved, it will be implemented in the fiscal year 2010/2011.

Amr Assal, Head of the Industrial Development Authority and of the Energy Pricing Committee, said the new rules include a series of changes.

‪Prices for Non Energy Intensive Industries that consume 30 percent of energy allocated to the Industrial Sector will increase by 15 percent. The new price will be 2 US dollars per million thermal units instead of 2.18 US dollars.

‪Glass, Ceramic and Porcelain Industries will be supplied energy at 2.3 US dollars instead of 3 US dollars. ‬

‪The Committee has also decided to list Chemical, Plastic, Paper and Decorated Glass Inustries as Non- Energy Intensive Industries, as they only consume 3 percent of energy.‬

‪Assal said there is no time limit for the implementation of the new prices set by the Committee and that annual price increments have not been decided on. He added that any new changes will be dictated by market mechanisms and the Pricing Committee, which will convene every three months.‬

‪Waleed Helal, Head of the Export Council for Chemical Industries, welcomed the new Pricing System and the listing of the Chemical Industries as Non-Energy Intensive. He added that the Committee has responded to the demands of the Industrial Sector, which are mainly to safeguard the competitiveness of the Egyptian industry.‬

‪Translated from the Arabic Edition.‬

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