Written by: Sohaib Shams
MP Amir El-Gazzar, a member of the Economic Affairs Committee of the House of Representatives, emphasized that dealing with the repercussions of rising global energy prices requires a balanced vision that ensures the distribution of burdens between the state and the citizen, rather than placing the entire cost on one party. He stressed that the three scenarios proposed to deal with the crisis involve difficult economic and social challenges.
Sharing the energy crisis bill
El-Gazzar explained that what is required is for the state to bear part of the increase in energy costs, in parallel with the citizen bearing another part within their capacity to endure, in a way that achieves a balance between protecting groups most affected by price hikes and maintaining the sustainability of the state's financial resources. He added that making the citizen bear the entire increase may exacerbate living pressures, especially in light of the impact of rising energy costs on the prices of goods and services and production costs, emphasizing the necessity of considering the social dimension when making any decision related to energy pricing.
The three difficult scenarios
The member of the Economic Affairs Committee pointed out that the options presented—whether making citizens bear the full increase, or having the state bear the cost from its resources or through borrowing, or simply providing fuel within available capabilities which might lead to supply shortages—put the decision-maker in a very difficult equation. He stressed that dealing with the crisis should not be limited to choosing between difficult solutions, but should be based on a careful study of the economic and social cost of each scenario, while looking for alternatives that reduce burdens on citizens and limit pressure on the general budget.
Total rejection of load shedding
El-Gazzar warned against the repercussions of resorting to long-term electricity load shedding, considering this scenario a very dangerous crisis for the lives of citizens and economic and service activities. He confirmed that long hours of power outages reflect on factories and various production and commercial activities, increase operating costs, and may negatively affect production and investment rates, in addition to the burdens the citizen bears in their daily life, confirming at the end of his statements the importance of finding balanced solutions that protect both the economy and the citizen.
