Water tariffs in Abu Dhabi to rise third year in a row

As part of a major tariff restructure, changes to the price of water and power in Abu Dhabi are set to change again from the beginning of next year...

Nov 25th, 2016
Content Dam Ww Online Articles 2016 11 Abu Dhabi Skyline

ABU DHABI, UAE - As part of a major tariff restructure, changes to the price of water and power in Abu Dhabi are set to change again from the beginning of next year.

Water usage is charged depending on usage, split into two blocks. The ‘green' band is for usage up to a certain level and 'red', classed as unsustainable, is usage beyond that level.

It was at the start of 2015 when UAE nationals started paying for water. As part of the changes, 'green' band users will start paying $0.57/m3 – a rise of 23% - from January 1 2017.

Meanwhile, the 'red' tariff is expected to rise to $0.71/m3 – a rise of 38%.

The changes are being rolled out by utility Abu Dhabi Water and Electricity Authority (ADWEA), in association with subsidiary companies Abu Dhabi Distribution Companies (ADDC) and Al Ain Distribution Company (AADC).

A spokesperson for ADWEA was quoted by local sources as saying: “Sustainability and encouraging people to reconsider their consumption behaviour of water and electricity are part and parcel of the fundamental principles of the emirate’s growth for the benefit of the future generations.”

Although UAE locals have seen marginal prices introduced for water, for expats, the cost is substantially higher. The ‘green’ tariff is expected to rise 32% to $2.13/m3, while ‘red’ tariffs will be reduced 1% to $2.83/m3.

Introducing and raising the price of historically heavily subsidised water tariffs has always been a controversial and difficult challenge for utilities in the Middle East.

Earlier this year Saudi Arabia sacked its water & electricity minister after a rise in water tariffs had not been implemented as planned (read story).

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