The Economic Committee of the Forces for Freedom and Change (FFC) has demanded the immediate cancellation of the recently imposed 500 per cent increase of the electricity tariffs.
The Economic Committee announced “its categorical refusal” to the increase in a statement yesterday, calling it “unjustified”.
The “inflated power fees will lead to an increase in the prices of many goods and services, and negatively affect agricultural and industrial production and exports,” the FFC warns. “This large increase in the electricity fees is implemented illegally, as it is not included in the 2021 National Budget, that has not been passed yet.”
According to the Economic Committee, “the main purpose of this tariff increase is to lift subsidies on electricity altogether”. In August last year, the Resistance Committees protested against lifting of subsidies on commodities.
The committee also objected to “contradictory figures” concerning subsidies on electricity. The text of the 2021 National Budget mentions SDG 115 billion*, while the Ministry of Energy reported the subsidies do not exceed SDG 58 billion.
It further considers the increase in the power tariffs a violation of the outcomes of the first National Economic Conference held in September last year – which called for not lifting subsidies until the necessary economic reforms have been carried out.
The FFC urged the government to adhere to the decisions of the Economic Conference. One of its outcomes was the recommendation to lift subsidies and replace them with direct cash support.
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