Economy

Minister of Energy: Financial support for the electricity bill in the south exceedes 18 billion dinars in 2020

The financial envelope allocated by the state to support the electricity consumption bill in the southern provinces exceeded 18 billion dinars in 2020, said Thursday in Algiers, Minister of Energy and Mines Mohamed Arkab.

During a public session of the National People’s Assembly devoted to oral questions, Arkab considered that this important financial envelope directed to the benefit of these provinces “reflects the state’s social policy that seeks to support the population in the south and provide conditions for a decent living in these areas.”

In this context, the Minister referred to the increase in electricity consumption in recent years at the national level, especially in the south of the country, as a result of changing energy consumption habits.

As part of its policy to support residents of the southern provinces, the state decided to grant partial subsidies to the prices of electricity consumption in these areas, which are characterized by difficult climatic conditions, especially in the summer.

The minister explained that this concession was approved for the benefit of families and farmers in the 20 provinces of the south, that is, customers of electricity with low and medium voltage, by reducing 65 percent of the electricity bill within the limits of consumption that does not exceed 12,000 kilowatts per year.

With regard to economic activities in these provinces, Arkab stated that operators in these areas benefit from a 25 percent reduction in the bill within the limits of consumption that does not exceed 20,000 kilowatts per year, according to the executive decree issued in 2017, which defines the modalities of running the fund for the southern regions.

Based on the data of Sonelgaz, the minister confirmed that the consumption levels currently applied in accordance with this decree exceed the needs of the majority of customers concerned with state support.

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