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No plans to raise power, water rates: UAE minister

The government bears 85 per cent of utilities costs for Emiratis

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UAE's Minister of Energy Suhail Mohammed Al Mazroui
UAE's Minister of Energy Suhail Mohammed Al Mazroui

The UAE has no plans to raise electricity and water rates as it will keep them heavily subsidised despite soaring domestic consumption, the minister of energy has said.

Suhail Mohammed Al Mazroui said subsidies on the energy sector in the UAE are among the highest in the world and this has turned the country into one of the largest energy consumers.

He said the government is bearing nearly 85 per cent of the power and water production costs for Emiratis and 50 per cent for the dominant expatriate community, adding that such costs average 32.8 fils per kilowatt and rise to 65 fils in peak hours.

“There is no intention for the time being to reduce subsidies but it is not acceptable that this consumption waste continues. We hope that individuals and establishments will cooperate in rationalizing consumption,” he said, quoted by the local press.

“The subsidies on this sector are putting a big burden on the federal budget and this should prompt all parties to cooperate to create stronger awareness of the need to reduce consumption and upgrade efficiency…raising power and water rates is not a solution to the problem because this will only put an additional financial burden on consumer…the alternative is to create better awareness for consumers.”

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