The Dubai Electricity and Water Authority (Dewa) has estimated that Dubai will need to spend £9 billion over the next five years to keep its lights on and fresh water flowing. Rapidly increasing demand for utilities and increased costs in the city-state mean businesses and households in Dubai face this price increase, the first utility bill increase for a decade. Dubai’s has an expected 10 per cent annual population growth, which will put pressure on already limited resources. According to a prospectus released by Dewa, demand for power and water will increase by 20 per cent a year in Dubai, which will cause shortages unless action is taken now to prevent such problems. Dewa want to raise tariffs to meet the cost of more expensive natural gas, fuel oil and water. The prospectus states: “Dewa is seeking government approval for an increase in electricity and water tariffs in the future across all customers as a whole.” Such price increases have been met with public opposition even though the costs are generally far lower than they are in Britain and Europe.
Source: http://business.timesonline.co.uk/tol/business/industry_sectors/utilities/article2813874.eceNovember 6th 2007
