The sun sets behind electricity pylons outside Cairo. The government has repeatedly asserted that the power cuts are essential to ease pressure on the grid. AFP
The sun sets behind electricity pylons outside Cairo. The government has repeatedly asserted that the power cuts are essential to ease pressure on the grid. AFP
The sun sets behind electricity pylons outside Cairo. The government has repeatedly asserted that the power cuts are essential to ease pressure on the grid. AFP
The sun sets behind electricity pylons outside Cairo. The government has repeatedly asserted that the power cuts are essential to ease pressure on the grid. AFP

Egypt begins scheduling power cuts as heatwave strains national grid


Kamal Tabikha
  • English
  • Arabic

Egypt’s ministries of electricity and petroleum are to begin scheduled power cuts on Tuesday amid a continuing heatwave that has intensified pressure on the country’s grid and natural gas supplies.

Last month, as the country saw some of its hottest temperatures on record, the government began cutting power in select areas of 24 of Egypt’s 27 provinces amid a significant rise in power consumption as citizens stayed at home and kept their fans and air conditioning units on.

Given the government often boasts of being ready to export surplus electricity, the power cuts have shocked and angered Egyptians, adding another layer to their daily struggle to make ends meet in a crushing economic crisis.

The power cuts were randomly implemented throughout last month, and citizens were inconvenienced by being unable to anticipate when and for how long they would be without power.

In response to repeated complaints, the cabinet released a schedule on Monday night detailing which areas would be out of power and for how long. The schedule is divided up by cities which are then divided into districts.

The government has repeatedly asserted that the power cuts are essential to give the nation’s power grid a reprieve from increased consumption amid the heatwave.

Power consumption hit 34,650 megawatts, its highest level for the year, in July, according to a statement issued by the Ministry of Electricity and Renewable Energy last week.

Despite the rise, which was revealed by the cabinet to be around 11 per cent in July compared with last year, consumption had not yet exceeded the national power grid’s maximum capacity of 44,900 megawatts, with a reserve capacity of 9,800 megawatts, the ministry said.

On Sunday, the cabinet’s spokesman Nader Saad said that the power cuts could continue into August or, in the worst-case scenario, September if the heatwave does not relent.

The government has said that the power cuts are being implemented equally across all areas, rich and poor.

However, there have been reports that some areas, particularly densely populated neighbourhoods, have been disproportionately affected by the cuts.

Sherihan Hassan, a resident of Cairo’s lower-income Talbia district, told The National that power cuts happen four times a day for an average duration of one hour.

But Aya Khaled has not had any power cuts. She lives in Heliopolis, an affluent neighbourhood where a number of government officials own homes and a national intelligence agency has an office building.

“I live very close to the Ettihadeya presidential palace,” Ms Khaled said. “There are also a number of prominent businessmen living in the area.

“When I first heard that some areas were getting power cuts, I prepared for it myself, but it has not cut out one single time throughout the last month.”

Another resident, Ahmed Alaa, who lives in the central district of Agouza, told The National that his street, which also hosts the Chadian Embassy, has also not lost power throughout July.

Last week, the cabinet mandated that public sector employees work from home every Sunday – provided that their presence at the workplace is not essential – to reduce power consumption.

Coastal provinces such as the Red Sea and Marsa Matruh are exempt because of their importance to the country's tourism sector.

In July, temperatures in Egypt rose dramatically, reaching 46°C in some provinces.

The heatwave and subsequent power cuts led Cairo residents to spend a lot more time outside their homes in the city’s parks and public spaces.

Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.” 

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”

Temple numbers

Expected completion: 2022

Height: 24 meters

Ground floor banquet hall: 370 square metres to accommodate about 750 people

Ground floor multipurpose hall: 92 square metres for up to 200 people

First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time

First floor terrace areas: 2,30 square metres  

Temple will be spread over 6,900 square metres

Structure includes two basements, ground and first floor 

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

Updated: August 01, 2023, 2:03 PM