Low oil doesn't affect Dubai power tariffs

Dubai - Dewa chief says 98 per cent of the authority's power production depends on dry gas.

There is no possibility of a reduction in the power tariff in Dubai despite oil prices at an 11-year low, Dubai Electricity and Water Authority managing director and chief executive officer Saeed Mohammed Al Tayer told Khaleej Times on Sunday.
Since the beginning of 2015, the Dubai utility introduced a fuel surcharge of 6.5 fils per kWh for electricity and 0.6 fils per imperial gallon for water.
"The Dewa power tariff is not linked with oil prices so we are not benefiting from lower oil price," Al Tayer said. He clarified that 98 per cent of Dewa power production depends on dry gas. "We have a long-term contract for LNG [liquefied natural gas]," he added.
Mentioning the UK and Germany examples, he said that Dubai's power tariff is around four times lower compared to European countries. "In addition, we are talking about reliability and value for money here," he emphasised.
The Dubai utility has four different power slab tariffs for residential and commercial consumers starting from 23 fils to 38 fils per kWh, depending on the use. For industrial consumers, the Dewa has two slab tariffs - 23 fils and 38 fils per kWh.
Abu Dhabi had also revised its water and electricity tariff upward with effect from January 1, 2015.
- abdulbasit@khaleejtimes.com