ABU DHABI // Residents and landlords in the emirate are braced for the substantial rise in the cost of water and electricity next year, which will result in expatriates being charged more than in other GCC countries.
Expatriates will pay more than three times as much for water and electricity than Emiratis beginning on January 1.
The water tariff will rise from Dh2.20 per 1,000 litres consumed to between Dh5.95 and Dh9.90. The variation is down to consumption benchmarks and whether the consumer lives in a flat or villa.
The electricity tariff will rise from 15 fils per kWh to 21 fils per kWh for up to 20 kWh a day for people living in flats, and up to 200 kWh for those living in villas. The rate for each kWh exceeding the limit is 31.8 fils.
"I think it's an unreasonable increase," said H?S, a Canadian. "But I would feel less annoyed if people actually became aware of their unnecessary consumption."
She said she hoped the higher charges would lead people to conserve energy and water, and become more environmentally friendly.
The increase in water prices is more than the Dh1 per 1,000 litres that Qatari expatriates pay, and more than the 10 fils per kWh they pay for electricity.
Saudi Arabia has the cheapest water rates at 1 fil per 1,000 litres of water.
The least expensive electricity is in Kuwait, which has not adjusted its rates - 3 fils per kWh - since the subsidised fees were set in 1966.
M?N, an Emirati who works for the Government, said the price rise would affect everyone but is for the greater good.
"Although this will make families change the way they are spending, it is an overall good move," he said. "Now people in Abu Dhabi will think twice before leaving a room with the lights or AC still running."
Emiratis, who previously had not been charged for residential water consumption, will now have to pay between Dh1.70 and Dh1.89 per 1,000 litres of water, depending on their daily usage volume and whether they live in an apartment or villa.
John Warren, an independent estate agent, said that although everyone would feel the price increase, the heaviest hit would be lower income workers.
"With a lot of the shared villas, they're probably going to take the biggest hit because a lot of them are owned by locals," said Mr Warren. "So if they are getting the local prices of the utilities then, of course, they'll see their bills rise quite substantially."
Electricity fees for Emirati residential customers have changed little. They will continue to pay 5 fils per kWh up to 30 kWh a day. The rate rises to 5.5 fils per kWh above 30.
Mr Warren said this was because many of the subsidies previously placed on electricity and water bills for locals would be lifted.
"However, a lot of the tenants we work with have a lot of their bills covered by their companies," Mr Warren said. "But I can see it bringing down rental prices a little bit because if it does hit the companies I can see them lowering the amount that they give as far as how their allowances are paid."
Residents in Dubai pay 2 fils more per kWh than Abu Dhabi residents do. However, they may end up paying less for water, depending on where they live.
The UAE and Bahrain are the only GCC countries to set separate utility prices for locals and expatriates.
nalwasmi@thenational.ae
