How much are my utilities bills going to go up as a result of DEWA’s recent decision to penalise heavy consumers? I did some basic calculations on energy and water usage. I compared the consumption of the Crumbling Villa with typical tariffs for domestic energy and water in the UK. The latter were lifted off the internet.
British water costs around 90p a cubic metre, which equates to Dh0.03 per gallon. The same price as DEWA charges for expats’ water. And despite the almost complete absence of rain, we don’t get subjected to the annual Festival of the Hosepipe Ban that runs from about Easter to August Bank Holiday. South East Water charges an astonishing £1.70/cu.m (Dh0.56/gallon) during the summer months and then forbids hosepipes, sprinklers, car washing and drinking without due care and attention. Or was that the government’s policy on binge-drinking?
Electricity is a bit more complicated to compare. Every summer month the Crumbling Villa consumes some 3500kWh, which drops to 500kWh in the winter when the air conditioning is off. So interior climate control uses 3000kWh per month, which costs around Dh600 at DEWA’s expat rate. Running the same aircons on British electricity would cost a rather scary Dh2175 a month.
But help is at hand, even in Rip-Off Britain. Gas is cheaper than electricity. If (and this is a very big if) the same number of energy units were used for central heating as for aircons, and utilising my fantasy gas-powered A/C, the monthly gas bill would be about Dh565. This is broadly in line with what it costs at the hands of DEWA. The cost of cooking gas is so minuscule I’ve ignored it in these calculations.
So even given DEWA’s new price rises, the costs aren’t wildly in excess of famously-expensive Britain. I haven’t been able to find out if the UK tariffs quoted are inclusive or exclusive of VAT. They’re certainly exclusive of the insidious Standing Charges that some UK suppliers slap on the bill even if you use nowt. Perhaps we should stop whingeing and realise that the bills aren't stupidly high.
Why has DEWA jacked up its tariffs anyway? I estimate that the Crumbling Villa will cost around 20% extra over the year. According to DEWA’s own figures and based on two people sharing, in order to avoid the high rates, consumption will have to be below 60% of average consumption. Apparently average consumption is considered excessive. Is the price rise to discourage profligate usage? Or to save the planet? Perhaps to jump on the ‘save the planet’ fashion bandwagon whilst making no appreciable difference to any carbon footprint? Or perhaps – and this is easily the most plausible – to make money.
According to the 22-28 Feb 2008 issue of the Middle East Economic Digest, the decision to hike the tariffs was
‘…triggered by DEWA losing Dh223M in the first seven months of 2007.’ Essentially, a lack of local gas forces DEWA to buy expensive oil from Abu Dhabi. At the thick end of $100 a barrel this ain’t small change. Certainly, a price hike ostensibly to curb consumption needs to be more wide-ranging if it’s to be effective.
MEED again:
An Abu Dhabi industry source said “[Emiratis] are the biggest users by a long way. Unless they include Emiratis, it does not really make sense, especially for water. Their per capita consumption is much higher because of the kind of accommodation they live in.”
Another source in Dubai said “Even though they are a minority of the population, locals are the majority of water users. The biggest users are the palaces. The government is now pushing sustainability in Dubai and Abu Dhabi. It needs to get a handle on government consumption.”UAE nationals in Dubai get half-price water and pay about a third of the electricity tariff that expats have to pay. In Abu Dhabi, domestic electricity is cheaper than in Dubai. It’s Dh0.15 rather than Dh0.20 per kWh, and nationals pay a third of this. Water is cheaper too. Expats pay Dh0.01 per gallon, as opposed to Dh0.03 per gallon in Dubai and for nationals it’s free.
Of course, UAE leaders can set up whatever rules they choose, and if this includes charging one part of the population more than another for basic amenities, then so be it. I would suggest, however, that adopting a similar approach to everybody – usage of electricity and water above a predetermined limit incurs higher rates – would go a long way in discouraging waste and introducing the perception of fairness.
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