Higher GCC power tariffs needed to cool peak demand

• 13 years ago (2010-07-01)
• David Flin

Middle East 310 North America 998

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The Middle East’s electricity providers have been urged to introduce variable tariff schemes that charge consumers more for usage during peak hours in an effort to ease demand. Abhay Bhargava, Industry Manager of Energy and Power Systems in the Middle East and South Asia for the consultants Frost and Sullivan, said: “All Gulf Cooperation Council (GCC, consisting of Kuwait, Bahrain, Saudi Arabia, Qatar, Oman and UAE) nations have the same times for their peak demands. The tariffs need to start reflecting the high price at peak times. The only correct answer is variable pricing.”

Dubai Electricity and Water Authority (DEWA) is currently running radio adverts stating that the peak daily usage hours in the emirate are between noon and 5pm each day, and are encouraging consumers to be more environmental and frugal in their energy consumption.

In order for variable tariffs to be implemented, DEWA must install smart meters and a smart grid so the tariffs can be managed correctly, Bhargava said. DEWA CEO and Managing Director Saeed Mohammed Al Tayer said in May that smart metering will be rolled out in Dubai within six months.