Second nod to rise in power, water prices – ‘Increase aims to curb consumption’

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KUWAIT CITY, April 26: The Parliament approved the draft law on determining electricity and water fees based on consumption in its second deliberation Tuesday, with 48 votes in favor and eight against. During the first deliberation on April 13, the Parliament agreed on exempting private accommodations from the proposal which covers investment (residential apartments), governmental, commercial, industrial and agricultural sectors.

It also recommended installation of smart meters in each house to determine the actual consumption of the household, implementation of an effective collection system through monthly and annual bills based on actual consumption, regulate the importation of electrical appliances or devices which consume more electricity, conduct a study on the use of solar energy for houses, and utilize other sources of energy in order to lessen usage of oil or gas. The lawmakers also emphasized the importance of intensive awareness programs to guide citizens and expatriates, especially the youths, on using electricity and water judiciously.

Article One of the bill states that fees for electricity (kilowatts/ month) and water (imperial gallons per month) are fixed. The Ministry of Electricity and Water shall be in charge of collecting payments.

Article Two stipulates granting incentives to citizens who greatly contribute to efforts to rationalize the consumption of electricity and water. Rules and regulations will then be issued on granting incentives.

Article Three states that citizens who reside in investment housing units shall be treated like their countries living in private houses, provided they do not receive support through another housing unit.

Article Four mandates the Minister of Electricity and Water to issue the executive bylaws within one year after the publication of the law in the official gazette.

Article Five stipulates stages of implementing the law as follows: one year after publication of the law in the official gazette for the commercial sector, one year and three months for the investment sector, one year and six months for the governmental sector, and one year and nine months for the industrial and agricultural sectors.

According to the report of the Financial and Economic Affairs Committee, electricity fees for the investment sector (apartments) will be five fils per kilowatt for those whose consumption ranges from one to 1,000 kilowatts; 10 fils per kilowatt for those with consumption ranging from 1,001 to 2,000 kilowatts; and 15 fils per kilowatt for those who consume more than 2,000 kilowatts.

For governmental and commercial sectors, the fl at rate is 25 fils per kilowatt, 10 fi ls per kilowatt for the industrial and agricultural sectors, and 20 fils per kilowatt for other sectors. On water charges for the investment sector (apartments), those with consumption ranging from 1 to 3,000 imperial gallons per month will pay KD 2 per 1,000 imperial gallons; those who consume 3,001 to 6,000 gallons will pay KD 3 per 1,000 gallons; and those who consume more than 6,000 gallons will pay KD 4 per 1,000 gallons. For the commercial and government sectors, the flat rate is KD 4 per 1,000 imperial gallons; KD 2 per 1,000 gallons for the industrial and agricultural sectors; KD 2.5 per 1,000 gallons for other sectors including chalets and stables; and KD 1 per 1,000 gallons for water refilling stations.

In another development, the Parliament discussed the request of the Women and Family Affairs Committee to invite members of the High Council for Family at the Women’s Center for Research at Kuwait University to tackle a number of issues. Majority of the Assembly members agreed that there are numerous issues concerning women and families in the country; hence, the need to discuss them with the concerned bodies in order to find appropriate solutions. This led to approval of the request. Furthermore, the Youth and Sports Committee requested for parliamentary investigation into the alleged financial violations in some sport associations, in cooperation with the State Audit Bureau.

Commenting on the request, MP Saleh Ashour pointed out the government has yet to exert any effort to address issues in the sports sector. He noted that the people of Kuwait are demanding for tangible progress, especially since the sports club election is just around the corner.

He asserted the Assembly has yet to see any sign of the one-vote system being implemented in sports club elections, let alone any amendment to the Sports Law for the country to be on par with international standards. He believes the country is still far from implementing genuine reforms.

Responding to the lawmaker, Minister of Information and State Minister for Youth Affairs Sheikh Salman Al- Homoud stressed that the government is doing everything to develop the sports sector; disclosing a project aimed at developing sports, not to amend the current law, will be submitted to the Cabinet soon for approval.

On the alleged financial violations, the minister admitted there are a number of suspicions so the financial allocations for suspected sports associations are suspended for the time being. He clarified the government will not refer the issue to the Public Prosecution until the violations or anomalies are confirmed through intensive investigation.

The committee tasked to study the rationalization of subsidies recently decided to increase the price of diesel to 80 fils per liter and kerosene to 85 fi ls per liter in May, reports Al-Rai daily quoting sources. Indicating this is the second monthly increase in view of the rising prices in the global market, sources pointed out the committee agreed to increase the price of diesel to 75 fils per liter and 80 fils per liter for kerosene this month so the average increase ranges from 5-10 percent.

Sources said this is the first increase in the price of diesel since the Cabinet approved the proposed 170 fils per liter in January last year instead of the subsidized price. Sources clarified the newly-proposed prices for diesel and kerosene are in accordance with the recommendation of Kuwait Petroleum Corporation (KPC).

KUNA adds:
The amendments offered by the government to the draft law on assessing prices of water and power are meant to rein in rampant consumption rather than harm the public, said National Assembly Speaker Marzouq Al-Ghanim on Tuesday. The amendments included excluding homeowners from the government price assessment as well as citizens living in rented apartments, said the Speaker in statements to reporters after the conclusion of today’s parliamentary session.

Regarding the government’s financial and economic reform plan, he said the plan was not a draft law to be voted on by lawmakers but a series of ideas and formulations as seen by the government which eventually must transform them into a workable piece of legislation that can be discussed and voted on by the lawmakers.

Once the workable piece of legislation is turned over to the National Assembly for consideration, it will be up to lawmakers to accept it or reject it, whichever the case may be, and at any rate this issue will be on the roster of the Assembly in its next meeting, said the Speaker.

By Abubakar A. Ibrahim and Ahmed Al-Naqeeb Arab Times Staff

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