‘Hike in power, water prices bid to push rationalization’ – ‘Private homes exempted from decision’

KUWAIT CITY, April 21: Kuwaiti citizens and expatriates are still concerned about the issue of increased electricity and water prices especially after the Parliament’s Finance Committee surprised them with the declaration of exempting private houses from the decision.

However, some observers wondered if such an exemption and several others will serve the objectives behind increasing the costs.

They also wondered about the benefits, in terms of rationalization of electricity consumption, of increasing the costs for only 55 percent of electricity consumption in general and 40 percent consumption in private houses, reports Al-Anba daily quoting informed sources.

They indicated about the exclusion of the industrial, agricultural and dairy sectors from the decision, such that the old price of 2 fils per kilowatt will apply in these sectors.

The sources wondered why the electricity prices are being increased in investment apartments which do not cover a high percentage of the total consumption.

They explained that vast majority of investment apartments are not more than 1,000 square meters in size and do not consume more than 2,000 KW a month.

Therefore, they will fall in the second category, whereby their new monthly bill will be KD 15 per month. Comparing consumption of electricity in investment apartments and in private houses, there is lesser wastage of electricity in investment apartments due to their smaller size, limited use of devices and lesser airconditioning capacity.

The sources stressed that the main objective behind increasing the electricity costs is to introduce the culture of rationalization among the consumers.

They affirmed that the decision of the government to increase the electricity prices was based on extensive studies conducted by Subsidies Committee under the supervision of leading international consultants

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