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Dubai announces freeze on electricity and water tariffs

The Dubai Supreme Council of Energy, a government body that sets energy policy, has announced that it would be freezing utility tariffs in Dubai over the next few years.

Nejib Al Zaafrani, Secretary General and CEO of Dubai's Supreme Council of Energy (SCE) emphasized in a statement today "that there will be no increase in the tariff of Electricity and Water consumption during the few coming years in Dubai".

The announcement, which comes after an increase in January, was also interpreted as a green light to industries from cement to metal smelters to invest in Dubai.

Zaafrani added that Dubai's Supreme Council of Energy (SCE) is the only authority responsible for determining the consumption tariff, which cannot be changed without a comprehensive study.

The announcement that Dubai will keep prices fixed increases pressure on the Government to introduce a feed-in tariff to help renewable energy compete with conventional power.

Dubai aims to source one per cent of its energy from solar power by 2020.

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