Kuwait increases utility tariffs to rationalise consumption

Kuwait increases utility tariffs to rationalise consumption
Utility tariffs have increased in Kuwait [representational image].
Published: 23 August 2017 - 5:30 a.m.
By: Neha Bhatia

Kuwait has increased tariffs on electricity and water in a bid to encourage utility savings.

The new rates, which took effect in the investment sector on 22 August, 2017, were announced by Dr Mashaan Al-Otaibi, assistant undersecretary of planning and training at the country's Ministry of Electricity and Water (MEW). 

READ: Is tariff the major issue in accepting district cooling?

Energy will now cost $0.016 (KWD0.05) per kilowatt hour (kWh). 

Meanwhile, 1,000 imperial gallons of water will cost $6.63 (KWD2). 

READ: DEWA recommends regular inspection of utility connections

Al-Otaibi said the new tariffs were effected in the commercial sector this May.  

He continued: "The tariffs of the government sector will rise [to] $0.082 (KWD0.025) per kWh, and from $2.65 (KWD0.8) to $13.27 (KWD4) per 1,000 gallons as of 22 November, 2017. 

READ: Study finds distributed generation represents a threat to utility revenues

"The ministry started implementing the new programme of increasing the tariffs of water and electricity after finalising all accounts of the investment sector and making sure that there are no consumers in debt." 

According to state agency, KUNA, it is hoped that the tariff hike will rationalise energy consumption in the country, where MEW consumes 350,000 barrels of oil a day to generate power, with the figure set to hit 2 million bpd by 2035 "if extravagant consumption" continues, Al-Otaibi said.

READ: Dubai utility savings reach $263m from 2009-2016

Click here to add your comment

Please add your comment below
Name
Country
Email
Your email address will not be published
Captcha