Latest News
- No Transactions Without Biometrics
- Passenger Caught With Pure Cocaine From Europe
- The Elderly Man Was Not Insulted By Me
- 97% Of MEW Workforce Are Kuwaitis; Strength 34,417
- Rushing Home For 'iftar' Causes Accidents And Deaths
- Expect Hot Days, Cool Nights, And Thunderstorms In Kuwait
- Health Procedures For Expatriates Updated
- Kuwait's Agility Global Seeks Inclusion On Abu Dhabi's ADX
- Public Authority For Industry Completes Industry Law Amendment P...
- Indian Ambassador Hosts Ramadan Celebration In Kuwait
- Al-Mashaan Grants Authority For Transfers Of Municipal Departmen...
- For The Expansion Of The Subiya Site, 204.178 Million Dinars And...
Raise Of Electricty Charges
Kuwait has been buzzing with questions since the cabinet announced Monday approving a proposal to increase electricity and water fees, which would increase the cost four fold for consumers according to the indications of ordinary consumption. Furthermore, it is widely expected that the fees’ increase will automatically and unwillingly reflect on other fields, starting with apartment rents, and includes factories that produce national products and every facility that uses energy.
The proposal would increase electricity fees as follows: for private houses (normally inhabited by Kuwaitis),
The bill proposes to raise current electricity charges of 2 fils per kilowatt to as follows:
For consumption
Up to 3,000 kilowatts – 5 fils per kilowatt
Between 3,000 – 6,000 kilowatts – 8 fils per kilowatt
Between 6,000 - 9,000 – 10 fils per kilowatt
Above 9,000 – 15 fils per kilowatt.
As for apartments (mostly inhabited by expatriate), the new proposed rates are as follows
For consumption
Up to 1,000 kilowatt – 5 fils per kilowatt
Between 1,000-2,000 – 10 fils per kilowatt
Above 2,000 kilowatt – 15 fils per kilowatt
The bill also proposes smaller increases to water charges.
Third category
According to sources, most citizens would be classified in the third category, and would pay 10 fils per kilowatt according to current consumption rates. The sources questioned the government’s argument that the bill encourages saving energy, saying that the majority of consumption goes to power air conditioning “that cannot be replaced” during Kuwait’s long and extremely hot summer.
“How can rationalization reduce an invoice valued at KD 100 if air conditioning consumes nearly 70 percent of the bill?” the sources wondered. Specialists meanwhile warned that real estate owners will be left with no other choice but to increase rents to compensate for the increase in energy bills.
Houses
Ministry of Electricity and Water (MEW) statistics show that the average consumption of power in private residences (houses) of an area between 300 to 1,000 square meters reaches 7,500 kilowatts, which is equal to an invoice of KD 15 according to the old tariff, while it will reach KD 54 according to the new price. This means that the annual bill would increase from KD 180 to KD 648.
The average consumption of water in these residences is 30,000 imperial gallons, for a value that will reach KD 60 according to the new tariff, from the current KD 24.
Apartments
As for residential apartments, where the average consumption of a two room flat is 2,700 kilowatts, the bill will increase fivefold from KD 5 to KD 25 a month. Four bedroom apartments with an area exceeding 400 square meters will go up to KD 75 per month, from KD 12 only.
Industrial sector
The industrial sector will probably be the most affected. With an average monthly consumption of 400,000 kilowatts, the monthly bill would jump from KD 800 to KD 4,000, since the tariff under the proposed plan increases from 2 to 10 fills per kilowatt. This would obviously lead to increasing the prices of products that these facilities provide.
Trending News
-
MoI Urges Biometric Fingerprinting Compliance Ahea...
21 March 2024
-
5 Days Holiday For Eid Al-Fitr Begins On April 9th
25 March 2024
-
Over 120,000 Expat Offenders Will Benefit From Kuw...
14 March 2024
-
Kuwait Offering Amnesty To Illegal Expats
17 March 2024
-
From April 1 To July 1, Kuwait Grants Amnesty To V...
14 March 2024
-
Kuwaiti Banks Elevate Non-Resident Credit To 4.17...
18 March 2024
-
Central Bank Of Kuwait Provides Banks With New Ba...
20 March 2024
-
Banks In Kuwait Report Robust Profits Despite The...
21 March 2024
-
Kuwait's Clean Energy Journey: Progress And Challe...
23 March 2024
-
Driving Licenses With Smart Technology
25 March 2024
Comments Post Comment