Sharjah, October 02: Sameer Mohammed may have to pay an additional Dh2,000 a year for electricity use as a resident of Sharjah after the emirate’s electricity authority increased fees by half on Thursday.
After more than one month of power outages and blackouts, Mohammed, who struggled to meet previous costs, said the increase would force him to look elsewhere to live.
The decision by Sharjah Electricity and Water Authority (Sewa) raises the tariff from Thursday for residential and commercial buildings from 20 to 30 fils and for industrial units from 30 to 40 fils.
Sewa Acting Director-General Ibrahim bin Deemas said on Sharjah Arabic Radio the decision was based on an increase in the cost of producing power: fuel costs worldwide had gone up along with the operation and production expenses of generation plants.
Consumers have been advised that the new tariff will be charged in the bills for October that will be distributed in the first week of November.
For people like Mohammed, the increase will have a substantial impact on his family. “Now there is no point in continuing to live in Sharjah, since there will be nothing left of my salary to support my family,” he said.
Many residents who work in Dubai opt to live in Sharjah because the cost of living is lower.
An expatriate consumer who has been living in Sharjah for five years said the increase could not be justified. “I cannot understand how Sewa thinks of such a move when there is frequent power outage in Sharjah,” the consumer said. “The cost of living is quite high and salaries of many who work in private sectors within Sharjah have remained unchanged for years.”
Ashoka Balani, the owner of a business in Industrial Area 3, said, “It seems every year Sewa hikes the power tariff without considering the situation of expatriates, who are the only ones affected by such increases.”
In February last year, power fees were increased from 17 fils to 20 fils per KWH in residential areas and from 20 to 33 fils per KWH for industrial building.
Leila Bushara, a housewife, said residents would have to consider moving to Ajman or even Dubai where rent had decreased recently.
“The (fee increase) is definitely going to add to household expenses,” said Bushara.
The Dubai electricity authority introduced a slab-tariff system more than a year ago, where fees increase in brackets of power use.
Bin Deemas said the Sharjah government subsidised power costs for expatriates by more than 50 per cent.
The rate of power production is 65 fils per kwh for residential and commercial buildings on average, of which the government pays 35 fils per kwh.
Power production for industry ranges from 80 fils to 95 fils per kwh, of which the government pays 45 fils. Emiratis do not pay power fees.
Bin Deemas said the authority did not plan to increase fees for water.
“There will be periodical reviews in tariff of power and the increase and decrease will be decided based on the cost of the production,” he said.
He reiterated the authority’s commitment to provide quality services and meet the requirements of development.
–Agencies