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29 March 2024

Dewa power tariff will remain same: Al Tayer

The issue of energy demand and supply is high on Dubai's agenda. (EB FILE)

Published
By Karen Remo-Listana

Dubai Electricity and Water Authority (Dewa) has ruled out any increase in tariffs, said a top official from the state-owned utility firm.

Saeed Mohammed Al Tayer, Dewa Managing Director and Chief Executive Officer, dismissed speculations Dubai may soon follow the move of Sharjah Electricity and Water Authority (Sewa), which announced on Thursday it will increase power charges in the emirate, beginning October 1, to cover production cost increase.

"There is no increase in tariff," Al Tayer told Emirates Business.

The issue of energy demand and supply is now running high on the emirate's agenda. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, recently set up two energy bodies to oversee long-term energy policy.

The Energy Higher Council, which Dewa is part of along with Dubal and Enoc, will address the demand side of the energy equation, while a new Department of Petroleum Affairs will look at supply.

Asked what kind of policies the council will be drawing up, Al Tayer said: "Definitely in the future we'll make policies for district cooling, which you will see in due course.

The energy council first of all will set up a strategy. There are many initiatives to regulate district cooling and to confirm tariff… but there will be no modification of tariff [now]."

Al Tayer did not comment on whether removal or reduction of subsidy will also be on the agenda.

In an e-mailed statement, Amal Koshak, Senior Manager Demand and Tariff Management at Dewa, stressed there was no plan to modify the tariffs.

She said the current tariff model for the residential sector will remain. The rates are 20 fils per kWh for 0 – 2,000 kWh consumption; 40 fils per kWh for 2,001-4,000 consumption; and 28 fils and 33 fils per kWh for 4,001-6,000 and 6,001 and above consumption, respectively. For the industrial sector, the slab is operating at the rate of 20 fils per kWh for 0 – 10,000 kWh consumption and 33 fils per kWh for 10,000 and above consumption.

 

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