Abu Dhabi hikes water charges on over consumption

Abu Dhabi Distribution Company, which sells water and electricity, has introduced a conservation-oriented tariff to discourage the waste of water.
The distribution company has increased the water tariff for expatriates by 6.5 per cent to Dh10.55 from Dh9.90 per cubic metre or 1000 litres for all consumption beyond the threshold of 5 cubic metres or 5,000 litres per day for villas. The consumption threshold for apartment is 700 litres per day.
There is no increase in tariff for the consumers who consume water up to 5 cubic metres or 5,000 litres
The tariff for the government entities has also been increased to Dh10.55 per cubic metres charging them the full cost of producing water. There is no change in the electricity tariff.
“We would like to highlight that the main objective of these changes is to encourage our valued
customers to reconsider their consumption behaviour and contribute for the environment protection efforts for the benefit of the posterity,” the distribution company said.  
In July, 2015, the UAE in a bold policy initiative gradually withdrew subsidies on petroleum products.
KSA, Oman, Kuwait followed the UAE footsteps.
Hamad Al Awadhi, member of the board of directors of Abu Dhabi Chamber of Commerce and Industry welcomed the new tariff, which would discourage over-consumption.
Once 4400 mw cheap-energy generated from the renewable source of nuclear in coming year, Al Awadhi expected, the government would fix the tariff on the lines of petroleum products, which will go down substantially.
Alp Eke, a senior economist at national Bank of Abu Dhabi said in 2014, according to IMF data, energy subsidies in UAE constituted almost six per cent of GDP or around $23 billion.
“But with recent pressures on the budget, energy subsidies are being gradually removed.  Benefits of the subsidies will be felt in the long run, UAE economy will save only modestly but the benefit will add up in the future years,” the economist said.
That policy has resulted in bringing down the prices from a subsidized level significantly, said Al Awadhi.
ADDC’s water and power customers are 412,540 in its three regions: Eastern Region -Mussaffah and Baniyas, Western Region-Liwa, Silla and Abu Dhabi Island.
-haseeb@khaleejtimes.com