Middle East 5

New electricity and water tariff based on a sliding scale

Dubai Electricity and Water Authority (DEWA) will put into effect a slab tariff system for electricity and water consumption. This will be based on a sliding scale beginning this March 2008. The restructuring rate is expected to remarkably decrease the public over consumption thus enhancing reasonable consumption to retain natural resources and preserve environment.
The new system is widely adopted in developed countries around the world and it doesn't affect those who consume reasonable electricity and water and who prove to be responsible. Therefore, the system doesn't affect consumers who fall in the first slab tariff category, since the electricity and water bill is directly proportional to the total consumption amount.

Saeed Mohammad Al Tayer, Managing Director and Chief Executive Officer, DEWA emphasized that 80 percent of consumers will not be affected by the new tariff structure since they fall into the first slab in the system. The introduced system will encourage customers who fall into higher categories to minimize their consumption scales in order to move towards the first category slab.

Al Tayer stressed on the pivotal fact that the new electricity and water tariff is based on a sliding scale and he pointed out that UAE locals are excluded at this stage for their houses and farms.

Al Tayer added: "The new system ensures that our natural and energy resources are better managed for the socio-environmental benefits of the Emirate." "The community has to be more reasonable in the way resources are used. For this purpose, DEWA is launching a new series of emirate-wide awareness and educational programs for Dubai public to disseminate the culture of conserving electricity and water," Al Tayer added.

"We firmly believe that there is an escalating necessity to implement responsible energy consumption strategies. The new tariff system will encourage people to keep a closer eye on their electricity and water consumption. It will also pave the way towards a more responsible utilization of natural resources. The slab tariff restructuring move will help Dubai to meet one of the major global challenges and to integrate a conservation culture within the society," Al Tayer concluded.

The average individual consumption of 20,000 Kilowatt Hour per annum and 130 Gallons of water daily, puts Dubai amongst cities with highest power and water consumption rates per individual, thus exceeding many cities in well developed countries such as the USA, Japan, UK, Germany and Singapore. (WAM)

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