Eligible Consumers
Eligible consumers are one of the key elements in the development of the Egyptian gas market and in creating greater opportunities for competition among gas suppliers. The eligible consumer framework enables consumers to select and contract with a gas supplier based on the terms and prices mutually agreed upon by the two parties, while accessing gas networks and facilities in accordance with the applicable regulatory rules and requirements.
Who is an Eligible Consumer?
An eligible consumer is a consumer who meets the criteria and requirements established in accordance with the provisions of the Gas Market Activities Law, its Executive Regulations, and the rules and decisions issued by the Gas Regulatory Authority.
An eligible consumer may contract to purchase natural gas from a gas supplier of its choice, based on the contractual terms and prices agreed upon by both parties, while complying with the rules governing the use of gas networks and facilities.
What is the Difference Between an Eligible and a Non-Eligible Consumer?
| Non-Eligible Consumer | Eligible Consumer |
| ‐ Purchases natural gas under the supply arrangements applicable to non-eligible consumers.
‐ The applicable gas price is determined under the pricing framework established for non-eligible consumers. |
‐ Purchases natural gas through a contractual arrangement with a supplier of its choice.
‐ The gas supply price is determined through an agreement between the consumer and the selected supplier. |
In all cases, the applicable regulatory, commercial, and technical rules governing the use of gas networks and facilities shall be observed.
Key Benefits of Becoming an Eligible Consumer
Becoming an eligible consumer provides a number of benefits, including:
- Freedom to select a gas supplier.
- The ability to negotiate gas supply prices and contractual terms.
- The ability to change suppliers in accordance with the applicable rules and requirements.
- Benefiting from competition among licensed gas suppliers.
- Access to contractual options that are better suited to the consumer’s nature and requirements.
- Supporting market efficiency and increasing the diversity of market participants.
Use of Gas Networks and Facilities
Selecting a gas supplier does not require the establishment of an independent network or a change in the operator of the network through which gas is transported or distributed.
Gas is delivered to the consumer through the existing gas networks and facilities, in accordance with the network access rules and tariffs approved by the Gas Regulatory Authority.
The consumer is required to allow the operators of the transmission and distribution systems to which it is connected to install metering equipment and carry out periodic calibration activities in accordance with the applicable rules, in addition to paying the applicable charges for the use of networks and facilities and for the quantities of gas supplied.
How Can a Consumer Become an Eligible Consumer?
An eligible consumer may notify the Gas Regulatory Authority of its intention to become an eligible consumer, in accordance with the approved forms and procedures, provided that it meets all applicable technical and regulatory requirements, as well as any other relevant requirements stipulated by the Authority. The consumer may then select a licensed gas supplier and enter into a supply agreement based on the terms and prices mutually agreed upon, while completing any other necessary procedures with the relevant parties to commence gas supply as an eligible consumer.