At the beginning of last April, Mahmoud Ahmed, a resident of the city of Sherbeen in Dakahlia Governorate, went to one of the subsidized goods distribution outlets to collect his family’s ration allocation, only to be informed by the trader that his ration card had been suspended. When he checked through the Digital Egypt platform, he was surprised to find that his subsidy had been temporarily suspended due to a report related to electricity theft, with a note indicating that the matter had been referred to the judiciary pending a ruling.
The crisis dates back to last September, when Mahmoud went to a branch of the North Delta Electricity Distribution Company to request the installation of an electricity meter for an apartment he owns in a licensed building located in an area classified as informal. According to his account, company employees told him that installing a conventional legal meter was not available in his case, and that the only option was the installation of a pre-paid coded meter, the system designated for buildings in violation or located in informal areas to ensure the consumer is billed for actual consumption rather than the “practice” system.
Mahmoud says the employees also told him that it was necessary to file an electricity theft report as a routine procedure to complete the regularization process and install the coded meter. He accordingly paid a fine of 2,672 Egyptian pounds ($51.38) under an official receipt for what the documents described as a “judicial report for unlicensed consumption,” and on 19 March the coded meter was officially installed in the apartment.
The surprise came less than a month after the meter was installed, when he found that the food subsidy allocated to him and three family members registered on his ration card had been suspended, despite having paid the fine and completed the regularization procedures. This contradicted what officials from the Ministries of Electricity and Supply had previously stated in media statements, to the effect that there was no link between the installation of coded meters and entitlement to food subsidies.
Despite submitting official documents from the electricity company, reviewed by Zawia3, proving payment of the fine and the installation of the coded meter, the supply office informed him that the complaints window was closed. He had no option but to submit two official complaints to the unified government complaints system under the Council of Ministers, but has received no response settling his case to date, as he confirmed to Zawia3.
Mahmoud’s case is among growing complaints in recent weeks from citizens who were surprised to find their ration cards, whether individual or family, suspended when attempting to collect subsidized bread and goods. When they inquired about the reasons for the suspension through official digital platforms, it emerged that the decision was based on old violations or electricity theft reports, despite the completion of reconciliation procedures and the payment of the prescribed fines.
Since August 2024, the Egyptian government has applied a decision to suspend subsidies for citizens proven to have stolen electricity, in a measure it says aims to address what it describes as a “worsening” phenomenon, while the decisions face widespread criticism over the transformation of government subsidies into a punitive instrument.
The Egyptian government is currently preparing to transition from the system of commodity subsidies and subsidized bread to a system of “conditional cash support” beginning in the new fiscal year (July 2026), with the subsidy expected to be disbursed via a smart card worth between 300 and 325 Egyptian pounds ($5.77 and $6.25) per person per month, in place of direct subsidized goods.
Complaints With No Response
Prior to the issuance of the reconciliation law for certain building violations and their legalization under Law No. 187 of 2023, the Electricity Holding Company was billing owners of buildings in violation of construction permits through the “practice” system, an estimated value calculated through the repeated filing of electricity theft reports by the electricity police or company inspectors against premises that do not have a legal meter.
In August 2024, Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, issued a decision requiring the installation of temporary pre-paid coded meters in all buildings and premises without exception, to measure electricity consumption obtained illegally.
The decision prompted Yasser Mabrouk, who owns a small shop inside a building in violation of regulations in Beheira Governorate, to attempt to regularize his situation. He went to the Beheira Electricity Company to apply for a commercial coded meter for his shop, and as a routine procedure, the commercial affairs division of the company filed a judicial report for consumer seizure (loads outside the meter) against Yasser in March 2025, who paid a fine of 4,864 Egyptian pounds ($93.54).
In April of last year, a reconciliation was reached at the Shabrakheit prosecution office following the submission of documents, thereby extinguishing the legal case. Following this, a commercial coded meter was installed in his shop at the beginning of June 2025. Nevertheless, the ration card for his family of five members was suspended at the beginning of last May, and he was unable to collect subsidized bread and goods. At the supply office he was informed that the reason for the suspension was the existence of an electricity theft report filed against him.
He subsequently submitted two official complaints through the unified government complaints system under the Council of Ministers, bearing the numbers 12323227 and 12268381. According to the response received from the Ministry of Supply, the reason for his exclusion was an accusation from the electricity company of electricity theft. He confirms to Zawia3 that when he submitted a second complaint, the electronic system automatically transferred it to the Ministry of Supply, without allowing him to submit a grievance or direct complaint to the Ministry of Electricity to challenge or review the accusation.
As for Mai Mostafa, a resident of Arish in North Sinai Governorate, she was surprised when the electricity intelligence department accused her in May of last year of tampering with the old electricity meter in her residential apartment by deliberately causing a technical fault. An electricity theft report was filed against her and she paid the fine, leading to a reconciliation, the removal of the old meter, and its replacement with a smart prepaid meter last June.
But a year after the incident, she was surprised to find that she and four family members were barred from collecting subsidized goods and purchasing subsidized bread after their ration card was suspended. When she went to the supply directorate to complain and submit a grievance, employees told her the card would be reactivated after one month.
She told Zawia3: “I tried to collect my ration at the beginning of this June but found the ration card was still suspended. When I went to the directorate, the employees told me the matter is in Military Production’s hands, and there is nothing they can do for me.”
Ghada Al-Shennawi, a resident of Gharbia Governorate, whose family’s ration card has been suspended since the beginning of last May due to an unauthorized construction registered in her name and her use of the “practice” system, which led to an electricity theft report being filed against her last year, had paid the prescribed fine and submitted a reconciliation, and a coded electricity meter was installed in her name. When she went to the supply directorate in Tanta to complain, with documents proving the reconciliation with the electricity company and the extinguishing of the legal case, employees informed her that the complaints window was closed, according to what she told Zawia3.
Prime Minister Mostafa Madbouly had announced in 2024 that the number of electricity theft cases in Egypt reaches millions annually, and that the government would freeze food subsidies and fertilizer subsidies provided to citizens against whom electricity theft reports are filed, temporarily until the judicial ruling in those cases is issued.
Following this, electricity companies prepared lists of citizens’ names against whom electricity theft reports had been filed, to be submitted to the Ministry of Supply. The first phase of the count alone covered 500,000 citizens, and in 2025 the Ministry of Electricity revealed the filing of approximately 3.4 million reports, including 1.9 million filed in a period of just 6 months.
There is no official statistic showing the number of ration cards suspended in connection with electricity violations, out of 67 million cards used by more than 70 million citizens to obtain subsidized bread and basic food commodities. Beneficiaries of the food subsidy system receive 50 Egyptian pounds ($0.96) per person registered on the ration card for up to four individuals, while 25 Egyptian pounds ($0.48) is disbursed for the fifth individual and beyond.
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The Key Word: Military Production
A circular letter dated 13 May, a copy of which Zawia3 obtained, addressed by the Assistant Minister of Supply for Digital Services, Dr. Mohamed Adel Shatta, to supply directorates in the governorates regarding the mechanism for ration cards of citizens affected by suspension decisions linked to electricity theft violations, revealed that the ministry had received a growing number of complaints from citizens whose ration cards had been suspended due to proven violations related to electricity theft or the connection of electricity to informal buildings.
According to the letter, ration cards of citizens proven to have committed electricity theft violations were suspended based on data received from the Ministry of Electricity and Renewable Energy. The letter also stipulated the reactivation of the ration card in the event that the citizen installs a coded meter to bill their electricity consumption, in accordance with data received from the Ministry of Electricity.
The letter indicated that supply directorates, in implementation of the Minister of Supply’s directives, are responsible for receiving and reviewing documents submitted by complainants, then contacting the Ministry of Electricity and Renewable Energy to verify the accuracy of the data concerning them. After verifying that the required conditions are met, the ministry takes the necessary steps to reactivate the ration cards of citizens proven to be entitled to this.
[Circular letter from the Assistant Minister of Supply for Digital Services, Dr. Mohamed Adel Shatta, to supply directorates in the governorates, dated 13 May 2026]
In the same context, a responsible source at the Ministry of Electricity confirms to Zawia3 that the crisis of ration card suspensions for some citizens on the grounds of electricity violations, despite their completion of reconciliation procedures or the settlement of their situations, is currently under review at the level of the relevant government agencies, expecting a mechanism to address these cases to be reached in the coming period through supply offices.
The source explains that the problem stems fundamentally from the electronic linking mechanisms between the databases of different agencies, as some citizens are registered on the system as soon as a violation is detected or an electricity-related problem arises, and the data is then transferred to the agencies responsible for managing subsidies. However, some cases remain on the electronic system even after the violation has been resolved or a reconciliation concluded, causing the effects of the measure to persist despite the legal situation having been settled.
He notes that complaints related to this file have increased in recent months, and have been presented to the competent authorities and discussed at various government levels, given the problems they cause for citizens who have already completed reconciliation procedures or settled the required dues.
He explains that addressing the crisis will not be the sole responsibility of the Ministry of Electricity or the Ministry of Supply, given its connection to a shared electronic system and data exchange mechanisms involving more than one government agency. He notes that the awaited solution will be issued through a government decision or directive at a higher level to ensure the settlement of affected cases and the updating of data to reflect their current legal status.
An informed source at the Ministry of Supply explains to Zawia3 that the decisions to suspend ration cards linked to electricity violations are based on lists received from the agencies responsible for electricity violations, noting that the ministry does not receive this data directly from the Ministry of Electricity but through coordination mechanisms involving other agencies responsible for monitoring violations.
He notes that the majority of cases whose cards have been suspended involve violations previously recorded, whether related to the practice system or reports concerning electricity use, pointing out that some citizens have subsequently paid their dues or completed reconciliation procedures, but the suspension data has already been entered into the databases used to review subsidy beneficiaries.
The official reveals that the Ministry of Supply is not the agency that directly manages the electronic system for ration cards, but that the electronic system is managed through an information center affiliated with the Ministry of Military Production, which is responsible for operating and managing the databases of the supply system.
A contract agreement was signed between the Information Systems and Computers Center of the Ministry of Military Production and the Commodity Supply Authority of the Ministry of Supply in November 2017, for the center to manage and supervise the operation of the bread and food commodity subsidy system using the smart family card.
The Information Systems and Computers Center affiliated with the Ministry of Military Production has undertaken a number of national projects, most notably the mechanization and development of ration cards, the construction of the digital infrastructure linking the universal health insurance system, the support and updating of databases for the agricultural holding system (smart farmer card), in addition to a drug tracking system, and the supply, installation, and repair of communication networks and surveillance systems.
The Ministry of Supply official, who declined to be named, stresses that the suspension procedures were not issued by the ministry independently but came based on data and information received from the agencies responsible for electricity violations, and were handled within the electronic system responsible for managing subsidies.
Regarding cases that confirm the absence of any recorded reports or violations against them, or that have obtained official certificates proving payment of dues or completion of reconciliation, the official affirms that the ministry is currently working on establishing a formal complaints mechanism that would allow citizens to review their situations and correct data in the event of errors or a change in the legal status of the violation.
He says: “The ministry is working on preparing this mechanism in coordination with the relevant agencies, in light of the recurring complaints from citizens and the difficulty in identifying the agency responsible for handling these cases. The announcement of the complaints procedures and application mechanisms is expected within days.”
He adds that the goal of the new mechanism is to facilitate procedures for citizens and reduce the time and effort required to establish the legal status of cases that have settled their situations or believe they have been included in the suspension lists in error, to ensure rapid examination of complaints and the taking of necessary measures regarding them.
The Ministry of Supply is scheduled to open the complaints window for the suspension of food subsidies on 14 June, according to a circular published by the Supply and Internal Trade Directorate of Giza Governorate.
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The Crisis Reaches Parliament
The crisis prompted a number of parliamentarians to act, as MP Bassam Al-Sawwaf submitted a parliamentary query on 7 May regarding the problem of ration card suspensions for citizens on the grounds of electricity violations and the complications of restoring them after reconciliation.
The MP noted that electricity distribution companies had notified the relevant bodies at the Ministry of Supply of violations against some citizens under the heading of “electricity practice” or “electricity theft,” which resulted in the sudden suspension of those citizens’ ration cards without clear prior notification or sufficient opportunity to regularize their situations.
He added that the application of this measure, which is fundamentally aimed at regulating electricity consumption, had resulted in serious social harm, manifested in the deprivation of entire families from food subsidies that in many cases represent a primary source of food, particularly given current economic conditions.
On 14 May, MP Ahmed Farghali submitted a parliamentary query to the Prime Minister and the Minister of Electricity regarding the application of the unified billing system to coded meters, the raising of the kilowatt-hour price to 2.74 Egyptian pounds ($0.05) with the abolition of the tiered system, alongside the retroactive calculation of financial differences on meters that have been in place for years, constituting an additional burden on citizens, particularly those with low and middle incomes, given current economic conditions.
The MP criticized the suspension of some ration cards based on data from the Ministry of Electricity concerning subscribers on the practice system, affirming that this impacted subsidy entitlements for some families under current economic conditions.
In the same context, parliamentary MP Dr. Freddy Al-Biadly considers that the exclusion of citizens from the food subsidy system due to electricity-related violations raises important legal and social questions, noting that deprivation of subsidies constitutes in essence a punishment that requires a clear legal text specifying the cases in which such a measure may be taken. He affirms that he is not aware of any legislative text permitting the withdrawal of food subsidies from citizens on the grounds of these violations.
Al-Biadly notes that the electricity and meters file is linked in many cases to the complexities of reconciliation procedures for building violations, explaining that large numbers of citizens are seeking to regularize their situations but face bureaucratic obstacles and complications arising from the executive regulations of the reconciliation law and the associated procedures, making it unfair to treat all cases as deliberate violations or ones resulting from bad faith.
He told Zawia3: “Any administrative system may experience application errors, which may lead to the exclusion of citizens who are entitled to subsidies. Therefore, there must be an effective and fast complaints mechanism that allows errors to be corrected and entitled beneficiaries restored to the subsidy system without complex procedures or long waiting periods, particularly since the matter concerns basic needs related to food and the daily livelihood of families.”
Al-Biadly rejects the automatic link between committing a building violation and not being entitled to subsidies, explaining that urban violations cover vastly different situations. They may relate to a room or a simple residential space built without a permit, or they may concern major projects or large buildings. Therefore, the existence of a violation does not necessarily mean that the person concerned has the financial capacity that would make them not in need of government support.
He adds: “Building violations already carry specific legal penalties and procedures, and therefore depriving a citizen of subsidies due to the same violation raises a problem related to double punishment, particularly if this impairs the basic rights of the family to access subsidized food commodities.”
He links these issues to broader problems facing digital transformation projects in government bodies, considering that the continued complaints of citizens about electronic system errors and the difficulty of correcting data or submitting grievances reflects a deficiency in the implementation of digitization systems.
MP Ihab Mansour does not separate the crisis of ration card suspensions from the problems linked to the building violations reconciliation file and the financial and procedural burdens it has placed on citizens, noting that large numbers of citizens submitted reconciliation requests and sought to regularize their situations, but government procedures still take extended periods, making citizens bear consequences they did not directly cause.
He affirms that many of those harmed by the suspension of subsidies or increased electricity costs had previously paid the required fees or submitted reconciliation applications, yet some agencies continue to treat them as violators without accounting for the documents or procedures they undertook to regularize their situations.
He told Zawia3: “What is happening is an extension of policies that impose increasing financial burdens on citizens. The continued application of elevated electricity prices to owners of meters linked to building violations, in parallel with the suspension of food subsidies for some cases, multiplies economic pressures on families, particularly amid deteriorating living standards and rising costs of living.”
Mansour stresses that he does not defend violations or encourage them, but considers that citizens who have submitted reconciliation requests or have already entered into procedures to regularize their situations must not face additional punitive measures before the state has completed the review of their applications and reached a final decision. The delay in government procedures or the slow processing of reconciliation files should not be borne by citizens.
The MP calls for the suspension of decisions to exclude citizens from the supply system or impose additional electricity-related burdens on them until the completion of file reviews and the cleansing of databases, in a way that ensures a distinction between cases that are still in violation and cases that have already begun to settle their situations through legal channels. He affirms that the current economic conditions require greater social consideration when taking decisions related to subsidies and basic services, particularly given the officially announced poverty rates and the broad segment of citizens who depend on government support to meet their basic needs.
The poverty rate in Egypt stands at 29.7% according to the latest reports of the Central Agency for Public Mobilization and Statistics, issued in 2020, while World Bank estimates indicate that national poverty rates in Egypt have risen in recent years to between 32.5% and 35.7%.
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Punishments Outside the Framework of Judicial Rulings
Human rights lawyer Malek Adly, director of the Egyptian Center for Economic and Social Rights, considers that the suspension of ration cards on the grounds of electricity violations raises a legal problem related to the nature of punishments imposed by the executive authority outside the framework of judicial rulings.
He explains that the law recognizes what are known as accessory and complementary penalties, which are punishments that can only be imposed by a legal text or by virtue of a judicial ruling, noting that what occurs in some cases of subsidy suspension represents, in his view, an expansion by the government in imposing additional punitive effects on citizens without direct judicial authorization.
He told Zawia3: “Depriving citizens of subsidies due to electricity violations is not necessarily linked to the social or economic eligibility criteria for the subsidy, so much as it has become an additional means of punishing violators.”
He adds that entitlement to subsidies must be measured by the income level and economic capacity of the family, not merely by the occurrence of a violation, pointing out that social and economic circumstances may drive some citizens to commit violations related to obtaining basic services.
Adly affirms that the government’s handling of electricity violations is sometimes characterized by a failure to distinguish between fundamentally different cases in terms of their nature and seriousness, explaining that electricity theft reports may cover vastly different situations ranging from a person who obtained an electricity connection to meet basic living needs, to facilities or factories achieving economic gains through the illegal seizure of electricity.
He considers that courts generally take these distinctions into account when determining punishment, while this differentiation is not reflected to the same degree in the administrative procedures related to the suspension of subsidies, noting that the issue is also linked to the social dimension of the violation, as there is a difference between those who commit a violation for profit and exploitation and those who resort to it as a result of harsh living and economic circumstances.
Regarding the building violations and coded meters file, Adly considers the crisis to reflect broader complexities in the management of the informal construction file, noting that many citizens who purchased residential units in buildings in violation found themselves victims of practices carried out by property owners or developers, while government policies have not always succeeded in reaching those originally responsible for the violation.
From the electricity company’s reports to the supply system databases managed by the Ministry of Military Production, thousands of citizens find themselves trapped in a complex bureaucratic cycle, deprived of the food subsidies they depend on to obtain bread and basic commodities, despite having paid fines or completed reconciliation procedures.
While the government promises to open a complaints window and establish a mechanism to correct data, questions remain about the legitimacy of linking subsidy entitlement to electricity violations, and about the capacity of digital transformation systems to protect citizens’ rights rather than converting administrative and technical errors into additional living burdens borne by the most vulnerable families.
