No low oil impact: Dubai to maintain Dewa tariffs, fuel surcharge

Dubai Electricity and Water Authority (Dewa) will continue to maintain the current utility tariffs and fuel surcharge despite having to pay higher for liquefied natural gas (LNG), a senior Dewa executive said.

“The fall in prices of crude oil has no impact on our prices and surcharge as our prices are linked to LNG for which we have signed long-term contracts and agreements,” Saeed Mohammed Al Tayer, Managing Director and CEO of Dewa, told Emirates 24/7.

“Oil prices have gone down, but prices of LNG are still higher. And ‘so how can I reduce the rates’,” he asked.

Oil was trading at around $38 a barrel on December 25, 2015. No details were shared on Dewa’s LNG price contract.

Al Tayer stated that utility tariffs in Dubai were almost four to five times lower than the United Kingdom and other European countries.

However, he declined to comment on whether the introduction of solar power will lead to waiver of fuel surcharge, adding, “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.”

Dewa’s fuel surcharge, applied from January 1, 2011, for expatriates stand 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.

Dubai is aiming to provide 7 per cent of its energy from clean energy sources by 2020, 25 per cent by 2030 and 75 per cent by 2050.

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