Water, electricity will not cost more in Dubai

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Water, electricity will not cost more in Dubai

Dubai - The energy demand is expected to increase by four per cent in 2017


Sherouk Zakaria

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Published: Tue 29 Nov 2016, 2:56 PM

Last updated: Wed 30 Nov 2016, 10:37 AM

There will be no increase in electricity and water tariff in 2017, confirmed a top official at Dubai Electricity and Water Authority (DEWA).
Speaking on the sidelines of the National Day celebrations held at DEWA Headquarters on Tuesday, Saeed Mohammed Al Tayer, MD and CEO of DEWA, said while the energy demand is expected to increase by four per cent in 2017, in line with a four per cent increase in GDP.
"We are expecting improvement in the economy, but electricity will not cost higher as there's no tie-up between oil prices and electricity generation, especially because Dubai is in long terms agreements with the suppliers and producers," he said.
His statement came shortly after Abu Dhabi Water and Electricity Authority (Adwea) announced a hike in its water and electricity tariffs effective from January 1, 2017.
Residents and commercial areas in Dubai currently pay 23 fils/kWh in the green band, rising to 38 fils/kWh in the red band. For water, residents pay 3.5 fils/IG*.
Fuel surcharge was added to electricity and water consumption from January 1, 2011, at 6.5 fils for power and 0.6 fils for water. Fuel surcharge in monthly electricity and water bill vary based on the rate of increase or decrease of the actual fuel cost supplied to its generation plants.
When asked if the introduction of solar power will lead to waiver of fuel surcharge, Al Tayer said, "Until we take over the solar project you will be see more efficiency from our existing projects and so there will be no increase or decrease in surcharge."
The utility is now focusing on increasing power generation through renewable resources, in which DEWA is planning to spend Dh65 billion within the next five years.
Al Tayer noted that DEWA's projects have so far satisfied 40 per cent of the power generation capacity. An additional 4,100 mega watts expected to be produced from coal and renewable energy at the Jebel Ali power plant by 2017.
By end of 2017, 100 power stations are expected to be constructed. 
Earlier, DEWA has announced that it was able to save more than Dh840 million. The amount translated to conserving 1,344 gigawatt of electricity and 5.6 billion gallons of water. A total of 714,000 tonnes of carbon emissions were also reduced.
To reduce carbon emissions, 30,000 buildings are being rehabilitated besides Shams Dubai rewards and a thorough infrastructure to be developed for electric cars.
One of the projects authorities are investing in is the Mohammed Bin Rashid Solar Park, which is expected to produce enough electricity to power 30,000 homes per year using photovoltaic (PV) solar panels.
Dubai is looking to have seven per cent of its total power from clean energy in the next four years, followed by 25 per cent by 2030 and 75 per cent by 2050.

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