Over 6,000 factories to benefit from power tariff cut in UAE
The initiative provides a robust catalyst for the national economy.
Over 6,000 factories across the country will benefit from the UAE Cabinet's recent resolution to support the industry sector by introducing reduced fees of electricity consumption for large, medium and small factories, according to the Ministry of Energy.
At a news conference on Wednesday, Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry, commended the initiative adopted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to support the industry sector and to re-affirm UAE's position on the global map as an attractive investment destination that provides an integrated environment for growth and sustainability.
The initiative introduced a reduced tariff for electricity consumption for the industrial sector, to be in effect as of Q4 of this year, while achieving sustainable growth by reducing dependence on non-environmentally friendly sources such as liquid fuels.
Large-scale plants will be supported by reducing the electricity consumption charges by 29 per cent, while small and medium factories will have reduced fees by 10 per cent to 22 per cent, in addition to waiving the service connection fees for new factories.
The initiative provides a robust catalyst for the national economy and draws a significant amount of major FDIs that will contribute to meeting Emiratisation targets, the minister said during the conference.
"Large factories are major contributors to the national economy and help meet Emiratisation targets by generating job opportunities for UAE nationals," said the minister while commenting on questions on why the big factories are the largest beneficiaries of the initiative.
"The initiative is not confined to a certain sector, but rather addresses the entire industry platform; however the focus has been laid on large factories on account of their major contributions to the national industries," he explained.
For his part, Mohamed Mohamed Saleh, Federal Electricity & Water Authority Director General, affirmed that all types of factories operating in the country will benefit from the initiative which has been tailored to meet their various needs.
"The industry sector is a main driver of long-run growth and accounts for more than 25 per cent of the Authority's income" he added, noting that industry sectors in Ras Al Khaimah and Fujairah could be the largest beneficiaries from the initiative.