Kuwait to increase utility rates for businesses, expats from May 22

Kuwait’s new water and electricity tariffs for businesses and expats will come into effect on May 22 and August 22 respectively, the country’s utilities ministry has said.

The rates will then apply to government offices from November and the industrial and agricultural sectors in February 2018, according to Kuwait Times.

The changes will see rates increase from KD0.02 per kilowatt to KD0.05 per kilowatt for shops and apartments, significantly less than the previously proposed charges of KD0.25 per kilowatt and KD0.15 per kilowatt respectively.

This followed pressure from MPs, who argued significantly higher rates would impact inflation and raise the price of goods for Kuwaitis.

Kuwaiti citizens are exempt from the increase.

Earlier this week, the country’s minister of electricity and water Essam Al-Marzouq warned that total annual subsidies for utilities in the country could reach KD10bn ($32.8bn) if consumption growth does not decrease.

He said the prediction was despite the increase in tariffs for expats and businesses and encouraged citizens to save energy.

Read: Kuwait ministry warns annual utility subsidies could reach $32.8bn