Dubai forms new bodies to formulate energy policy

The Emirate is faceing increasing demands for water and electricity as its petroleum reserves dwindle.

The Dubai Government created two planning bodies yesterday to help formulate energy policy as it confronts increasing energy demand and dwindling supplies of oil and natural gas. Sheikh Mohammed bin Rashid, the Ruler of Dubai and the Vice President of the UAE, issued a decree creating the Energy Higher Council, which will advise the Government on ways to control power and water demand growth and guarantee a long-term energy supply. The rate of electricity demand growth in Dubai is among the highest in the world. The Dubai Electricity and Water Authority (Dewa) said earlier that it expected consumption to grow by 10 per cent this year.

The council will be made up of representatives of Dewa, Dubai Aluminium, Emirates National Oil Company, Dubai Petroleum, the Dubai Nuclear Energy Committee and the Dubai Supply Authority. Sheikh Mohammed also issued a decree creating a Department of Petroleum Affairs to "monitor the production, sale and export of crude oil in the emirate". Dubai's output of crude has fallen steadily since 1991 and oil revenues now make up only a small portion of the budget. The new department will have a seat on the Energy Higher Council.

Sheikh Ahmed bin Saeed al Maktoum, the chairman of Emirates Airline, will serve as chairman of both new bodies. [e-mail]