Water, electricity to cost less in Dubai: How it impacts Dewa bills

Waheed Abbas/Dubai
Filed on November 29, 2020 | Last updated on November 30, 2020 at 06.32 am

Fuel surcharge for water will be 0.4 fils for Imperial Gallon (IG) instead of the current 0.6 fils, Dewa said in a statement on Sunday.

Dubai Electricity and Water Authority (Dewa) has announced a reduction in fuel surcharges for electricity and water from December 1 this year. Fuel surcharge for electricity will be 5 fils for a kilowatt-hour (kWh) instead of 6.5 fils currently. Fuel surcharge for water will be 0.4 fils for Imperial Gallon (IG) instead of the current 0.6 fils, Dewa said in a statement on Sunday.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, issued a decision to reduce the fuel surcharge for electricity and water. The authority said the price reduction was made possible thanks to the UAE leadership’s decision to actively move towards the use of clean and renewable sources of energy. The decision has been taken on the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

The decision reflects the Supreme Council’s commitment to enhance Dubai’s prestigious position in providing electricity and water services at globally competitive prices. The savings achieved in fuel consumption as a result of the increase in solar energy production will be passed to customers. The fuel surcharge reduction will be applied on electricity and water bills from December 1.

Saeed Mohammed Al Tayer, vice chairman of the Dubai Supreme Council of Energy and MD and CEO of Dewa, said: “At Dewa, we work in line with the vision and directives of the wise leadership to increase the share of renewable and clean energy and provide 75 per cent of Dubai’s energy capacity from clean energy sources by 2050 through the Dubai Clean Energy Strategy 2050.”

He added: “In light of the increase in the share of clean energy capacity in Dubai’s energy mix to around nine per cent, fuel consumption has decreased. These savings will be reflected in customers’ bills. The Dubai Supreme Council of Energy’s decision to reduce the fuel surcharge for electricity and water underline the wise leadership’s keenness to ensure a decent life for the residents of Dubai.”

How does it impact power bills?

Slab tariff and fuel surcharge are applied on monthly electricity and water consumption of Dubai residents. In slab tariff, price increases progressively with the increase in electricity and water consumption and fuel surcharge is calculated based on electricity consumption (fils/kWh) and water consumption (fils/IG) and included in the monthly bill.

Fuel surcharge vary based on an increase or decrease in fuel prices supplied to Dewa generation plants and tariffs vary for residential, commercial and industrial units. The slab tariff for water and electricity consumption is fixed at 3.5 fils per IG and 23 fils per kWh.

Residents hail move

Residents in Dubai have given a big thumbs up to the Supreme Council of Energy’s announcement to slash fuel surcharges for electricity and water.

Arijit Nandi, an Indian expat who lives in the Springs neighbourhood, said: “It’s a welcome move and a big relief. This would mean people who have backyards or gardens will see a significant change in gardening costs, as that would naturally come down. We will especially feel the difference in summer months when electricity bills usually shoot up. I pay close to Dh2,000 per month during peak summer, so I am looking forward to some respite. Apart from that, I hope housing and sewage fees, which are also part of Dewa bill, should be reduced too, if possible.”

Shilpa Akula, another Greens resident, pointed out: “Since the lockdown, and with work from home and online schooling, our utility bills have shot up considerably. While we made some changes - like switching to energy-efficient LED bulbs, this move by Dewa will help us ease the burden of the increasing costs. It will be great if Dubai Municipality can also have a relook at the housing fees - which in some cases comprise nearly 50 per cent of the monthly Dewa bill.”

Muhammed Haris wrote on Facebook: "This is really helpful for residents, and would be greatly appreciated during the summer months."

(With inputs from Nandini Sircar)

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