The Egyptian Electricity Transmission Company (EETC) has finally become an independent electricity transmission system operator after separating from parent organization Egyptian Electricity Holding Company (EEHC), according to an Electricity Ministry statement. The move is part of a broader — and much delayed — plan to liberalize the electricity market by turning the state’s electricity companies into market regulators and opening the door for the private sector to both produce and buy electricity from each other.

Following the split, the EETC will exclusively manage electricity transmission and grid operations, providing non-discriminatory third-party access in exchange for a fee. The entity will also carry out network maintenance, set up high-voltage transmission projects, and regulate electricity trading rules, as well as international interconnections.

REMEMBER- Since the El Sisi administration kicked off its economic reform program in 2016, privatizing the electricity sector has been on the agenda. Legislative changes were first introduced back in 2016 as part of the Electricity Act, which enshrined a target to transform the state from the sole market player to a market regulator, while separating the activities of production, transmission, and distribution to boost private sector participation. The state’s electricity companies were given eight years to complete the transition to market regulators by 2023, but this was extended another two years to 2025 back in 2020.

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