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Sun 14 Aug 2011 03:00 PM

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Dubai to hold electricity, water tariffs steady 'in coming years'

Rising energy demand has forced Dubai to buy more gas to feed its power stations

Dubai to hold electricity, water tariffs steady 'in coming years'

Dubai will not raise water and electricity tariffs in the next few years, the emirate's top energy council said on Sunday.

The UAE, which has seven percent of the world's known oil reserves, is one of the highest per capita consumers of water and electricity in the world.

"There will be no increase in the tariff of electricity and water consumption during the few coming years in Dubai," Nejib Al Zaafrani, secretary general and chief executive of Dubai's Supreme Council of Energy (SCE) said in a statement.

He did not specify the number of years.

The government of Dubai owns utility Dubai Electricity and Water Authority, and the SCE is responsible for ensuring energy supplies in the emirate where increasing demand for cooling and are major drivers for rapidly rising electricity use.

Living costs in the trade and business hub of Dubai grew 0.8 percent on an annual basis in June, the biggest rise in two months. Prices of housing, water and electricity, the biggest Dubai basket component, dipped 0.2 percent.

Analysts polled by Reuters in June expected UAE inflation to accelerate to 2.5 percent this year from 0.9 percent in 2010, which was the lowest annual level since the Gulf war started in 1990.

Rising demand for electricity in Dubai, where soaring summer temperatures drive up air conditioning use, has forced the energy-hungry emirate to buy more natural gas on an increasingly tight global market to feed its power stations.

Gas prices have risen markedly in 2011 partly on increased demand from leading importer Japan after the closure of many of its nuclear plants in the wake of the March earthquake and tsunami.

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Anonymous 8 years ago

Does that mean expats will take the hit with an increase in the Housing Fee (aka: expat tax)?

anonymous 8 years ago

My last dewa bill was 3260 dhs...that is almost 1000 USD for a month of electricity and water...out of this cost 560dhs was "fuel surcharge" (a new charge as of beginning of 2011) and 450dhs was housing fees...that is almost 1,000 dhs or 200 euros on "expat tax".......DEWA has not been this high ever and we are seriously considering having to move to an apartment to be able to bring down DEWA cost during the summer months.....all this talk about prices having dropped following the financial crisis remain just talk....rents have not dropped (other than in the places where nobody wanted to leave anyways i.e international city, motorcity etc), food prices have not dropped, DEWA has not dropped...in fact costs have kept increasing.... The Royal Mirage on the Palm is asking for 450 dhs to use their pool facilities on a weekend (just pool no food!!!!) i wish the media would stop talking about the incredible savings that we are all benefiting from, as a result to the financial crisis.

Ashok 8 years ago

DEWA has already raised the tariff by 15% in Jan and again by 14-16% in the form of so called fuel surcharges. Which means a whopping 30% in one go. What more rise they want?

Telcoguy 8 years ago

Rents have dropped both in Marina and the Palm (the two places I was looking) and of course springs, meadows.
They may stay put in DIFC, I will check when i return.
Everything else, yes it is more expensive.

But it only makes sense: with no or little growth prospects (in terms of both number of expats and available income) the best strategy, at least in the short term, is to milk the cow.

Dubai is not run in the interest of the expats, nobody ever promised that. This is just a gigantic hotel, if service drops below certain point or the bill goes over certain point we just check out.

Cheers

chetan 8 years ago

One great solace, after they have increased the electricity charges including fuel surcharge at the basic level (G level) by total 50% from total 20 fills to total 30 fills

Total Water charges including fuel surcharge have been increased by 30% at the basic level (G level).from 3 fills per unit to3.9 fills

However, I understand there is one section is charged less, to the tune of 7 fills per unit of electricity. If it is correct, it will result in lot of wastage of natural resources.

Kohinoor 8 years ago

You are always WELCOME in Sharjah, cut your bills half..
Remember, we are almost crossing this summer without the powercuts like previous years. We are improving as self-sufficient Residential City. Better option especially in recession.

Its not only about your rent and utility bills you pay once in a month its about all the prices hiked up by the vendors to meet their own rent and bills.

Cost of living is possibly only 60-70% of what you spend on the other side of that bridge.

Naufel 8 years ago

I remember reading a report on Abu Dhabi planning to increase Water & Electricity tariffs (electricity is priced @ 15 fils/ unit), and I think it was in December 2010. Well, while they are still only "planning" the increase, Dubai has already increased the tariffs and imposed fuel surcharges - see how quick we are!

Anonymous 8 years ago

I just rented an apartment in the Discovery Gardens. DEWA charges applicable : AED100- disconnection charge from previous apartment, AED100- new connection charge for current apartment, 5% housing fee (and I thought DG was on freehold land with no housing fees applicable). Apparently, housing fees are applicable all over Dubai (in case you didnt know), as advised by the smiling lady at the DEWA office, except at Silicon Oasis. Just wondering if DEWA missed any other charges to my bill.

Turista 8 years ago

Time to check out guys !

Ewald 8 years ago

Excellent news.

We pay about 3000aed during the summer for electricity for our 6 years old well maintained villa. All our efforts to reduce electricity consumption have actually not resulted in any visible energy saving: Changed all lights (at great expense) to energy saving type; installed door struts on outside doors to ensure they are closed at all times, mounted isolation strips at all the doors; keep the water pump off during the day, bought a new Energy "A" label fridge (we are conscious about buying “A” label appliances only), power off the PC at night, maintain the air-conditioning twice a year, and clean their filters monthly, removed the garden pond with 2 pumps in my garden... all of that have resulted in no visible reduction of the bill... My guess it’s that design of the house, and the fact that the AC is probably responsible for 90% of our electricity bill it is very hard to save anything, despite the efforts.....