Nod to higher power tariffs for expatriates and businesses; citizens exempted
The National Assembly voted in the first round to allow the government to raise electricity and water charges on apartment buildings - mostly used by expatriates - and businesses, but exempted citizens. 31 MPs voted in favor and 17 members against the bill. The second and final round of voting will take place in two weeks, and MPs said they will introduce amendments to the bill. If given the final clearance, it will be the first time in 50 years that Kuwait will raise power charges. According to the bill, those living in apartments will pay 5 fils per kilowatt for the first 1,000 kilowatts, 10 fils per kilowatt for between 1,000 and 2,000 kW and as much as 15 fils a kilowatt for consumption above 2,000 kW. Water prices will also be more than doubled. Citizens and those staying in private houses have been exempted and will continue to pay just 2 fils per kilowatt regardless of consumption. It was not immediately clear when the new charges will be applied, but indications are that it will be applied only after installing smart power meters and could take up to one year. Electricity and Water Minister Ahmad Al-Jassar said that at Kuwait's current consumption of 15,000 megawatts, the government pays KWD2.66 billion in subsidies for electricity and water annually. He said that in 2035, consumption would triple and subsidies would hit KWD7.6 billion if nothing is done to cut overconsumption and stop squandering of electricity and water. The aim of the government bill, which proposed higher tariffs, is to cut consumption by 30%, the minister said. (Kuwait Times)
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