A new legislation liberalising the electricity market and encouraging the private sector to invest in it was published in the official gazette on Monday.
The electricity law, issued by President Abdel Fattah al-Sisi late Sunday, allows the state to give up the management of the electricity sector’s public utilities. The state would only be responsible for organising and observing the electricity sector.
The bylaws of the new legislation will be issued within six months, the Electricity Ministry said in a statement on Monday. Electricity utilities would then be given six months to legalise their status as per the new legislation.
The new law resolves the issue of subsidising electricity, which often repelled investors. It provides a new mechanism which would allow the private investor to make profit even when abiding to subsidised prices.
The law also separates the Egyptian Electric Utility and Consumer Protection Regulatory Agency from the Electricity Ministry, making it an independent body tasked with regulating the market.
The law punishes vandals who target electricity facilities by a maximum of three years in prison and/or a 500 thousand Egyptian-pound fine.
Since the ouster of president Mohamed Mursi in July 2013, militant attacks have been on the rise. Electricity pylons and railway tracks are often targeted.