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The Madbouly government could soon raise water prices for both household and industrial use, as part of a comprehensive review currently underway, two government sources told EnterpriseAM.
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The move comes in response to water scarcity concerns, the sources said.
Prices are also being increased to cover maintenance costs, Irrigation Minister Hani Suweilam said during the latest meeting of the Canada Egypt Business Council.
A new water consumption quota system for the manufacturing sector could be in the cards, with the government currently studying a proposal to apply consumption caps for different industries, one of the sources told us. The proposed methodology will ensure the continued operations of factories. The studies are expected to be finalized in 1H 2026, in line with the establishment of the National Water Council.
The Housing Minister has approved incentives to reschedule water overconsumption fines that were slapped on factories in July, allowing repayment over long periods without additional penalties, so as not to disrupt production in industrial zones, one of the sources said.
The government is currently studying applying a subsidized price for low-consumption brackets, with a ceiling to be introduced, the sources said. Most household use falls within the low-consumption bracket, meaning the majority of homes will continue to benefit from subsidized pricing, we were told.
Consumption above that ceiling would be charged at a liberalized rate, based on assessments of global and local developments, as well as overall demand, the sources added.
There is also now more clarity for private companies wanting to enter the water market — whether for management or sales — under the executive regulations of the new Drinking Water and Wastewater Utilities Regulation Law. The law permits private-sector participation in managing and delivering drinking water and wastewater services, opening the door for private players to enter the key sector. It aims to fast-track major projects, attract more investment, and improve service quality in the sector.
