The announcement that the cost of water and electricity will rise has many people understandably worried. The increases, which are slated to take effect in early 2017, will hit many middle income families with an additional financial burden. While the reduction in subsides will be felt in the short term – the scheduled increase for expatriates will be 31.76 per cent for water and 27.6 per cent for electricity – the change will usher in better energy consumption patterns across the capital. They will, that is, if the hikes happen in unison with other critical energy saving initiatives.
The majority of residents in Abu Dhabi don’t own their homes or flats. Therefore, they are often at the mercy of landlords when it comes to energy-saving methods such as efficient air conditioning units and the ability to use solar panels. In order for the capital to realise its goal of increased energy efficiency, owners must be incentivised to offer fuel efficient appliances in the home and install solar panels where available.
This is an opportunity for landlords. Prospective tenants could be attracted to a home based on the inclusion of an energy saving air conditioning system or solar panels. The same goes for water consumption. Water conserving taps and showers are cheap and provide additional incentive for prospective renters.
Despite the announced increase, utility tariffs remain low in Abu Dhabi compared with other countries. Low tariffs have always been a double-edged sword as they can trick consumers into thinking that water and electrity are, in fact, cheap. Quite the opposite is true.
Water and electricity are among the most expensive daily expenditures for any country to create and provide. As we have seen with recent global discussion of climate change, the true expense of excess consumption of water and electrity will be felt for generations as resources become limited around the world.
Therefore, this increase is appropriate and will ultimately prove helpful for the overall health of the country as long as other energy saving developments such as the proliferation of fuel-efficient air conditioning and the rise in solar panels takes place with similar intensity.
The UAE has demonstrated its seriousness about tackling climate change on an international level. It only makes sense to start curbing consumption at home as well.