Egypt is increasing electricity costs for businesses that stay open late, while keeping residential consumers outside the scope of the new pricing.

The increase targets electricity-intensive businesses such as malls, cafes, and entertainment venues operating beyond regular hours as power demand climbs 8% year over year.

Why You Should Care

The decision introduces higher electricity costs for commercial businesses with heavy energy use during extended operating hours, rather than reinstating mandatory early closures. 

Importantly, the measure does not apply to households or ordinary citizens. It will preserve residential electricity prices while encouraging businesses to account for the additional cost of operating late into the night.

The move also comes as Egypt faces rising pressure on its power network, with daily electricity demand reaching 37.5 gigawatts, an 8% increase from the same period last year.

The Details

Egypt announced a 20% increase in electricity prices for energy-intensive commercial activities. This includes cafes, entertainment venues, and shopping malls that operate during late-night hours.

According to Alarabiya Business, Ministry of Electricity spokesperson Eng Mansour Abdel Ghani, said the increase will apply only to electricity consumed during additional operating hours beyond standard business hours. The spokesperson also clarifies that the measure comes as an alternative to enforcing earlier closing times. 

The announcement comes as Egypt’s electricity consumption continues to rise. Daily demand has increased from 34,500 megawatts to 37,500 megawatts compared with the same period last year.

The Ripple

The decision gives businesses that rely on evening foot traffic greater operational flexibility by allowing them to extend their opening hours instead of adhering to earlier closing requirements. For shopping malls, cafes, restaurants, and entertainment venues, the revised pricing creates an alternative that supports continued commercial activity while encouraging more efficient electricity use during periods of higher demand.

The move also reflects Egypt’s broader efforts to balance rising electricity consumption with the needs of a growing economy. By applying the price increase only to high consumption commercial users operating late at night, the government has left household electricity prices unchanged while introducing a more targeted approach to managing energy demand.

What to Watch

The move underscores Egypt’s efforts to manage growing electricity demand through targeted policies rather than broad consumer price increases. Additionally, the country continues to invest in electricity infrastructure and network modernization. 

Together, these measures reflect a broader push to support a more efficient and sustainable power system while ensuring households remain insulated from the latest pricing changes.