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Fewa likely to slash tariff by month-end

“It is only a matter of setting balance between the production costs and the service sold to listed consumers.”

Dubai — The Federal Electricity and Water Authority (Fewa) may cut the tariff of electricity and water by the end of June as per a slated review done twice a year, Khaleej Times has learnt.

Mohammed Saleh, Director-General of the Fewa, said the authority is not looking to make profits. “It is only a matter of setting balance between the production costs and the service sold to listed consumers.”

He said the Fewa does not hike tariff unless backed by an extensive study. “We want to provide quality services to the public.”

Noting that the production of every kilowatt/hour (kwh) of electricity costs 45 fils, Saleh said the recent hike in electricity tariff is only applicable to owners of freehold properties, as per a newly added slab. “The new tariff — 45 fils/kwh, has affected some 270,000 consumers, of five percent, of Fewa’s consumers, while tariff for the remaining 95 per cent in Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah remained unchanged.”

The tariff applicable is still 28 fils/kwh for under 2,000kw consumption per month, he explained. ‘The same tariff applies to residents of the buildings owned by Emiratis.”

However, the tariff differs for the second slab, and rises to 33 fils/kwh against the consumption of 2,000kw to 4,000kw, while consumers of over 4,000kw to 6,000kw have to pay 38 fils/kwh.

“Consuming over 6,000kw costs 45 fils/kwh. There is only one slab for Emiratis and agricultural use, which is 7.5 fils/kwh, while the industrial slab stands at 44 fils/kwh.”

Late in December 2014, the Fewa announced a five-fil increase on electricity tariff, to curb wastage of resources and meet the skyrocketing prices of natural gas used in production.

ahmedshaaban@khaleejtimes.com