Kuwait considers utility tariff hike
Recommendations include a review of current prices and subsidies to increase fuel and electricity prices according to actual rates and encourage citizens to rationalise consumption
Kuwait is the latest country in the GCC to consider an increase in its current electricity and water tariffs amidst depressed oil prices, and calls for increased austerity on public expenditure.
Kuwait’s Supreme Planning Council has submitted to cabinet a series of recommendations geared towards electricity and water conservation.
The move is also aimed at scaling down the country’s dependence on oil derivatives to generate electricity.
The report, prepared by a joint committee comprising of agencies from the Ministry of Electricity and Water (MEW), Kuwait Oil Company (KOC), Environment Public Authority (EPA), Kuwait Institute for Scientific Research (KISR), Kuwait University (KU), Kuwait Petroleum Corporation (KPC), Kuwait Foundation for the Advancement of Sciences (KFAS), and the National Technology Company.
Recommendations include a review of current prices and subsidies to increase fuel and electricity prices according to actual rates and encourage citizens to rationalise consumption.
The council also recommended a full adjustment on collection methods and setting a limit to maximum consumption rates.
It also recommended applying programmed cutting policies in case of exceeding the maximum limit and delay in paying consumption bills, using more alternative energy to reduce reliance on oil derivatives in generating electricity and desalinating water, and provision of more effective systems to control imported electrical appliances to make sure they are power-saving.
The council also proposed to extend its liabilities to include responsibility for other sources of energy.
Other recommendations include assessing the solar power use experience KFAS implemented in Zahra, importing the latest technology to execute new projects and mandating the government and citizens to use them to stop wasting energy, boosting public awareness concerning consumption rates, passing new legislations that ban importing non-saving electrical appliances.
Using modern technology to recycle water, providing land, factories and raw material to encourage manufacturing appliances that help conserve power, using alternative power in industries and strictly imposing articles 122 and 123 of the environment law concerning environment-friendly specifications were also among the recommendations made.
In addition, the National Technology Company offered building a number of solar power plants according to BOT systems offering at least 20 percent of those plants’ shares for bidding amongst citizens so that the produced power could be handed over to the government to be distributed to citizens at subsidized prices.