Electricity and water charges to be based on consumption rate
Steps to hike costs overdue
The government last Monday approved a bill concerning the new charges of electricity and water which will be based on consumption rate. If this bill is approved and implemented by the National Assembly, Kuwait will be the last country in the Arabian Gulf region to introduce the system of charging based on consumption rate, whereby the current fixed cost of 2 fils will be increased by more than double to 5 fils for the first 3,000KW per hour.
Therefore, instead of paying the average normal electricity rate of KD 50 monthly, we will end up paying almost KD 125 per month. Such a high rate could cause the government to reach a compromise. The more the consumption, the higher will be the bill. This basically means that the consumers will have to manage their electricity and water consumption in a better and more efficient manner. The matter now rests with the people.
According to the new bill, the rate for private houses and apartments will be increased from the current fixed rate of 2 fils per kilowatt to 3 fils per kilowatt. This cost will reach up to 15 fils per kilowatt for consumption of more than 9,000KW. For investment flats and apartments, the starting rate will be 5 fils per kilowatt and will reach up to 15 fils per kilowatt.
Regarding water consumption, the starting rate will be KD 1 per 1,000 imperial gallons and will reach up to KD 3 for consumption of more than 30,000 imperial gallons per month.
However, this step to increase the costs is quite overdue compared to our neighboring countries, as we needed to curb our very high rate of electricity and water consumption. Kuwait is the highest consumer of water compared to the rest of the world. An individual globally consumes an average of about 65 gallons of water per day but in Saudi Arabia and Kuwait, the water consumption rate is 250 and 450 gallons per day respectively.
This must be stopped and the only way to do so is by charging a higher rate until the consumption as well as the heavy burden on our economy can be reduced to a satisfactory level. So far so good! If the proposal goes through the National Assembly and the latter opposes the increase in the charges, the government should try to present acceptable rates with firm determination to impel its economic reform plans. A compromise should be reached to maintain the old rate of 2 fils for the first category and then to increase gradually. Subsidies must be reduced for preservation purposes without trying to please the National Assembly.
In the past, our governments have dropped their economic reform plans many times but it is high time now for the government to stand firm and proceed with the reforms for the sake of the coming generation, even if it means the National Assembly has to be cancelled.