Utilities tariff structure revised for residential customers in Abu Dhabi

Abu Dhabi: Effective from January 1, the water and electricity tariff structure for residential customers in Abu Dhabi will be revised with a ‘green band’ category for low-consumption and a ‘red band’ for high consumption. However, exceeding the limit of the green band will not attract a flat higher rate for the entire consumption.

Expatriates using up to 700 litres of water a day in apartments and 5,000 litres a day in villas will fall under the green band and pay a tariff of Dh5.95 per 1,000 litres. If they exceed this limit, a higher tariff under the red band will be applicable for the excess consumption only; not for the entire usage, a senior official told Gulf News.

With this decision, expatriates under the green band will face around 170 per cent increase in water tariff, from the existing Dh2.2 per 1,000 litres to Dh5.95 per 1,000 litres.

For example, if an expatriate living in an apartment consumes 750 litres per day (50 litres above the green band limit), it will not attract a higher rate (under the red band) for the entire 750 litres. The higher tariff will be applicable for the excess 50 litres only.

Rashid Al Rashidi, deputy director-general of the Regulations and Supervision Bureau (RSB), said the mechanism will be the same for Emiratis and expatriates although the consumption bands are different.

Secondly, simply exceeding the green band limit for a day or a few days will not attract a flat higher rate. The daily use that determines the band will be calculated by average use in a billing cycle, Al Rashidi said.

For example, daily use of a consumer having a 30-day billing cycle will be calculated by total monthly use divided by 30 days.

A UAE resident uses 250 to 550 litres of water and 20-30 KWh of electricity a day against the international average of 170 to 300 litres and 15 KWh per day respectively.

As Gulf News reported recently, expatriates who use electricity more than 20 KWh (kilowatt hours) in apartments and 200 KWh in villas will have to pay a higher tariff that will be announced later this month.

Expatriates in the green band could face around 40 per cent increase in electricity tariff — from 15 fils per KWh to 21 fils per KWh.

The new structure announced by the RSB, in collaboration with Abu Dhabi Distribution Company and Al Ain Distribution Company, has not increased electricity tariff for Emiratis who use up to 30 KWh a day in apartments and 400 KWh a day in villas. They will continue paying the existing rate of 5 fils per KWh.

Emiratis who consume above this limit have to pay a new tariff of 5.5 fils per KWh. However, Emiratis have to pay for water that is free under the current tariff structure. Emiratis have to pay Dh1.7 per 1,000 litres up to the use of 700 litres a day in apartments and 7,000 litres a day in villas. Beyond this limit, the tariff will be raised to Dh1.89 per 1,000 litres.

Source: Binsal Abdul Kadel, Staff Reporter, gulfnews.comGN


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