No plan to hike tariff, says Dewa

DUBAI — Bringing relief to Dubai residents reeling under the rising cost of living, the Dubai Electricity and Water Authority (Dewa) yesterday denied a media report that it was planning to hike water and power tariffs.

By A Staff Reporter

Published: Wed 7 Nov 2007, 8:51 AM

Last updated: Sun 5 Apr 2015, 4:35 AM

The report in a local English newspaper had said Dewa is mulling a tariff hike for funding its $19 billion expansion plan.

Saeed Al Tayer, Managing Director and CEO of Dewa, yesterday denied any plans to hike tariff, describing the report as “inaccurate”.

In a Press statement, Al Tayer said: “We are talking about future investments and not short-term plan. Dewa’s strategy is to consider practical means of funding including cost-effectiveness.”

“Dewa is working as per the government strategy and has its master plans up to 2017 along with the associated financial plans for funding the infrastructure expansion,” Al Tayer added.

“Dewa is managing various viable funding resources with the support of the Dubai Government. We have a good track record in our operation and reliability of service,” Al Tayer said. The confusion about the tariff hike arose after a report in the local newspaper quoted a document given to investors saying that Dewa has sought permission from the government to increase power and water tariffs for the first time in a decade to fund a $19-billion expansion plan and cover surging cost.

The denial was welcomed by residents who are already worried about the high cost of living.

Razia Usman, a housewife living in Karama, said: “I was shocked to read that Dewa was going to hike power and water charges. With the soaring rents and spiralling prices of essential commodities, we are struggling to cope with the situation. An increase in the Dewa charges would definitely have hit our budget.”

A relieved Rajendran, working in an advertising company, said: “I am planning to send my family home as it is not possible to keep them here with the soaring cost of living. I am happy to know that Dewa has no plans to increase the charges.”

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