Putting a price on water
DEWA (Dubai Electric and Water Authority) is raising rates on water consumption by non-citizens.
Gulf News reports:
Emphasis added.
If the point is to encourage conservation, then it does not make sense economically to exempt a group that is just as likely to include big users.
This story has stirred considerable debate at the UAE community blog.
UPDATE: 27 Feb - Sharjah moves to "rationalize electricity and water consumption." No word on whether some customers will be exempt from paying their bills.
Gulf News reports:
Water and electricity prices in Dubai have been revised to encourage big consumers to use less by paying more.
Currently residents pay 3 fils per gallon and will continue to do so as long they do not use more than 6,000 gallons, the price will then go up to 3.5 fils per gallon, and even 4 fils per gallon for consumers who sap more than 12,001 gallons from the tap.
Electricity fees will range from 20 fils to 33 fils per kilowatt hour depending if usage exceeds 2,000 or 10,001 kilowatt hours for residents and industries respectively.
Emiratis are exempt from the new rates.
Emphasis added.
If the point is to encourage conservation, then it does not make sense economically to exempt a group that is just as likely to include big users.
This story has stirred considerable debate at the UAE community blog.
UPDATE: 27 Feb - Sharjah moves to "rationalize electricity and water consumption." No word on whether some customers will be exempt from paying their bills.
Labels: people respond to incentives
posted by John B. Chilton at 2/19/2008 12:25:00 AM
3 Comments:
John, the locals have always had water and electricity for free. They've never been charged for these. In any case, I agree, the quite well off citizens, with mansions and sprawling gardens should incur costs, even if subsidized.
"Locals" must be charged, because it appears to me none of us are interested in conserving energy or water when the state just give it to us for free.
It's a huge welfare state for the citizens. How can they mask that fact?
Something that might not necessarily be linked with this post is of utter concern for me now. Considering the red tape in Dubai for entrepreneurs and the almost impossible competitive laws, make it very difficult to establish and grow a sustainable organization. Now, with the launch of Dubai Government's own event management company, where does this leave us, seriously? When almost every profitable sector is dominated by semi-government companies including airlines, telecom, insurance, finance, banking, and now something as peculiar as event management too? Are we to be scared of the future business climate here? How much longer will it be until every industry has a semi-government entity in it, that can grow seamlessly without the hurdles that we go through, such as visas, permits, bank guarantees, etc.
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