Arab Finance: The Egyptian Electricity Transmission Company (EETC) is finalizing scenarios for its demerger from the Egyptian Electricity Holding Company (EEHC) and plans to present them to the government next December, an unnamed government source told Asharq Business.

The official stated that EETC is in the process of selecting CI Capital as an advisor to evaluate its assets, pending a government decision on the most suitable scenario for the separation process.

The EETC is currently the sole entity in Egypt responsible for purchasing electricity from both government and private producers and selling it to state-run electricity distribution companies.

It also manages all cross-border electricity interconnection projects.

The 2015 electricity law mandated its separation from the EEHC to open the electricity market and encourage competition, as part of efforts to fully liberalize the sector.

Among the proposed scenarios is the establishment of subsidiaries under the EETC that would be tasked with purchasing energy from private investors and selling it to the national grid.

Another option under consideration involves creating a subsidiary focused on electricity interconnection projects with other countries, supporting Egypt’s ambition to become a regional hub for energy exchange.

A further proposal would see the EETC transitioning to a role as a network operator, ensuring fair access to the transmission network for all stakeholders.

This model could also involve launching subsidiaries and eventually converting the EETC into a holding company structure following its separation.

Currently, the EEHC oversees 16 companies responsible for electricity production, transmission, and distribution across the country.

It manages budgets and supervises all electricity-related activities.

The proposed separation of the EETC would significantly restructure this framework.

In 2021, the Egyptian House of Representatives approved amendments to the electricity law, delaying the separation of the EETC from the EEHC to 2025 instead of the original target date of 2021.

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