DEWA’s slab tariff turned one year this month. Twelve months on, the debate about whether it’s a good thing or not is unresolved.
Calculations from Farnek Avireal, a facilities management company, speculate that some users utility bills could have risen by as much as 66% since the tariff was introduced. With the tariff weighted so the more power you use, the more you pay, its intention was to encourage energy saving among residential and commercial consumers. However, some commercial customers feel unduly penalised by the tariff structure – just ask anyone in the increasingly vocal district cooling business.
Farnek Avireal’s estimates were based on average individual electricity usage of 20000 kWh per annum. As a result it has estimated that a Dubai office tower of around 35,000 m2 on Sheikh Zayed Road, which had a previous annual electricity bill of AED 2.5 million, would have had an increase over the past year of 65% to AED 4.12 million.
Similarly, a hotel of around 20,000 m2 in Dubai, which had previous annual energy costs of AED 1.5 million, could have seen a rise of 66% to AED 2.48 million, all under the slab tariff system.
Naturally, energy saving measures would help alleviate this cost increase. Reducing consumption was DEWA’s stated aim all along, but have residential and commercial consumers responded with action?
Utilities Middle East would like to know. Have you or your company experienced increased charges for power? More importantly, have you or your company taken any energy saving measures to help reduce these charges?
Let us know by posting a comment on this story now. The tab is at the top of the page.
