CREG, the Algerian energy regulator, has increased electricity and gas tariffs for high-voltage electricity and high pressure gas (industry) by 20% and 35% respectively.
Effective on 1 January 2016, increases in electricity prices cover nearly 76% of consumers while the gas price increase affect 57% of consumers, according to data released by the CREG. For low-voltage electricity, no price increase is applied for consumption between 0 and 500 kWh/year (tranche 1) and between 500 and 1,000 kWh/year (tranche 2) that are supposed to satisfy basic electricity needs for households. On the contrary, increases of 15% and 31% from the current price are applied to customers of the third tranche (between 1,000 and 4,000 kWh/year) and the fourth tranche (over 4,000 kWh/year), respectively.
The same progressive pricing is applied to the consumption of low pressure gas. No price increase is applied to the two first tranches, respectively consumption respectively between 0 and 4,500 therms/year and between 4,500 and 10,000 therms/year. Rates are increased by 24% for the third tranche (between 10,000 and 30,000 therms) and 42% for the fourth tranche (greater than 30,000 therms/year).
According to calculations by the CREG, 54% of residential electricity consumers and 43% of residential gas consumers are concerned with the increases applied to tranche 3. 22% of residential electricity consumers and 14% of residential consumers gases are affected by increases in prices of tranche 4. As a result, 24% of low-voltage electricity consumers and 43% of low pressure gas consumers will not suffer price increases.