Sonelgaz applies new tariffs not contained in the 2016 Finance Law

After the turmoil triggered off by higher prices of fuels recorded since the onset of the new year in NAFTAL petrol stations, which are not included in the 2016 Finance Act, as initially it was expected an increase of 5 DA for diesel and DA 8 DA for gasoline, and for no good reason, the national fuel distribution company Naftal added wittingly a profit margin without prior notice.

Now, it’s the turn of the national gas and electricity Company “Sonelgaz” to repeat the same bleak scenario by adding to the prices not provided for by the 2016 Finance Law, a tax which will substantially hike the price of electricity and gas to the dismay of the Algerian consumers whose purchasing power is constantly being eroded.

Thus, for the prices of low-voltage electricity, no price increases will be applied for consumption between 0 and 125 kWh / quarter (Unit 1) and between 125 and 250 kWh / quarter (Unit 2).

However, increases of between 15.15% and up to 31.13% from the current price will be applied by Sonelgaz to the third installment, respectively (between 250 and 1,000

kWh / quarterly) and the fourth tranche (greater than 1000 kWh / quarterly), while for the other source of energy, the same progressive pricing was applied to the consumption of low pressure gas.

As a result, prices rose by 24.04% for the third tranche (between 2,500 and 7,500 th / quarterly) and 41.74% for the fourth tranche (greater than 7,500 th / quarterly).

These new tariffs for electricity and gas, decided as part of the 2016 Finance Law have been in force since 1st January 2016, and concern respectively 76% and 57% of consumers.

In this context, Mr Zebdi Mustapha, President of Apoce, regrets that “Sonelgaz” hasn’t even bothered to expound beforehand these new staggering price increases to citizens as part of a smooth and transparent communication.