7days News

Dubai, Mar 3: Commercial and industrial businesses are in for a shock later this month when they receive electricity bills that could be as much as 65 per cent higher, said a facilities management company. A new tariff structure introduced on Saturday by the Dubai Electricity and Water Authority (DEWA), aimed at encouraging energy consumers to use less by paying more, will mean electricity bills for expat and locally- owned businesses could increase by millions of dirhams a year, Farnek Avireal said.

But, according to Abdullah al Hajri, DEWA’s corporate communications manager, the new tariffs will not be as high as has been speculated. “It’s not going to be that high,” he told 7DAYS, referring to the potential 65 per cent price hike.  “The new tariffs will increase the more energy you use. Our studies show that 82 per cent of people will not be affected by the price rises,” he said.

According to Farnek Avireal, a typical office tower on Sheikh Zayed Road has an annual energy bill of around dhs2.5 million. With the new tariff structure, its DEWA bill will rise by almost dhs2 million. For hotels, the bottom line impact will be even greater. Based on Farnek Avireal’s energy database, a typical five-star city hotel has a total energy bill of up to dhs7 million a year. That would increase by an additional dhs4.5 million.

“We are trying to encourage people to conserve electricity and water,” added al Hajri. “With minor changes to the way residents use energy, they can ensure they are not affected by higher tariffs.”