Dubai reduces fuel surcharge on water and electricity bills

The lower charges will be applied on Dewa bills from December 1

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on November 24. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on November 24. Courtesy: Sheikh Mohammed bin Rashid Twitter

Mohammed bin Rashid Al Maktoum Solar Park has a planned capacity of 5,000 megawatts by 2030 and cost Dh50bn to build. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, visits the Mohammed bin Rashid Al Maktoum Solar Park on Tuesday. Courtesy: Sheikh Mohammed bin Rashid Twitter

Mohammed bin Rashid Al Maktoum Solar Park cost Dh50 billion to build and will produce 5,000 megawatts of clean energy. Courtesy: Sheikh Mohammed bin Rashid Twitter

Dubai residents will soon receive more spare change from their electricity and water bills.

From December 1, fuel surcharges levied by Dubai Electricity and Water Authority (Dewa) will be cut by 23 per cent for electricity and 33 per cent for water.

The move follows an increase in solar energy production in Dubai, enabling Dewa to pass the savings on to customers.

The reduction will mean the fuel surcharge for electricity will cost 5 fils per kilowatt hour, instead of 6.5 fils.

Charges for water will be reduced to 0.4 fils per imperial gallon from 0.6 fils.

A fuel surcharge was added to electricity and water consumption in January 2011.

The charge varies according to the actual fuel cost supplied to Dewa generation plants.

Dubai is working towards a target of obtaining 75 per cent of its energy needs from renewable sources by 2050.

It is now about 9 per cent, surpassing a target of 7 per cent for 2020.

“In light of the increase in the share of clean energy capacity in Dubai’s energy mix to around 9 per cent, fuel consumption has decreased,” said Saeed Mohammed Al Tayer, vice chairman of the Dubai Supreme Council of Energy and managing director and chief executive of Dewa.

“These savings will be reflected in customers’ bills.

"The Dubai Supreme Council of Energy’s decision to reduce the fuel surcharge for electricity and water underlines the wise leadership’s keenness to ensure a decent life for the residents of Dubai.”