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New proposed energy tariffs in Kuwait may hit expats hard

The Ministry of Electricity and Water has suggested new energy tariffs in Kuwait, while the government still continues to study proposals in this regard.

Earlier, the tariff was 2fills for apartments in the investment sector, commercial compounds and the housing sector. The housing sector refers to houses given by the government to nationals, while the investment sector refers to apartments that are mostly occupied by expatriates. This tariff of 2 fils was almost surreal in comparison to other countries like India, Lebanon, Jordan etc.

But now, the new list being issued is based on how much the residents would pay for every kilowatt per hour, based on their individual consumption of electricity. For instance, for government-provided homes for nationals, consumption of 0 to 6000 kw per hour will be charged 2 fils, from 6001 to 10,000 would be 6 fils, and 10,000 and upwards would be 12 fils.

Expats living in apartments would have to pay 2fils for 1 to 2000 kw per hour consumption, 6 fils for 2001 to 3,000 kw and 12 fils for 3000 kw and upwards.

If implemented, this initiative as of now is set to be reason enough for landlords to increase rents again, and the new tariff is also likely to make the lives of expats in Kuwait more miserable.




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