Power & Water Tariff Rates

Context

Price signaling is a key driver to change consumer behavioral patterns. Electricity & water tariffs have undergone an adjustment in 2011.The tariff currently in place is designed in a slab structure, which moves consumers to a higher tariff slab as their consumption rises.

The purpose of the tariff adjustment was not only to reduce total consumption, but also to “shave” peak consumption, since it directly affects capacity plans and investments in generation. The Dubai load profile is characterized by three periods over the day. During the high season; summer, the three periods are: “valley period” during late night and early morning, “peak period” during daytime and “second peak period” during evening. The Annual Load Swing is about 66% due to the high variability of loading between summer and winter seasons.

A key priority for Dubai is to improve consumer awareness on the tariff structure and on the potential savings to the DEWA bill and for Dubai from basic behavioral changes, such as setting their AC to 24 degrees Celsius.

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Scope

The program seeks to periodically review and adjust tariff rates, if needed to ensure economic efficiency and to align ratepayer incentives with demand-side-management objectives

Key Initiatives

Key Facts