Kuwait ministry warns annual utility subsidies could reach $32.8bn

Kuwait’s Ministry of Electricity and Water has reportedly warned that total annual subsidies for utilities could reach KD10bn ($32.8bn) if consumption growth does not decrease.

The ministry said the figure would be despite new consumption tariffs for expats and businesses that will be reduced later this year, according to Kuwait Times.

In a letter to the country’s commerce minister, electricity and water minister Essam Al-Marzouq was quoted as saying that consumption rates were increasing at an alarming rate.

The KD10bn estimation was based on the expected rate of consumption when 250,000 new Public Authority for Housing and Welfare units are completed.

The ministry urged the use of smart home technology to save energy and encouraged the adoption of energy saving measures as criteria for citizens to be applicable for a KD30,000 ($98,577) construction material subsidy.

MPs in the country have proposed scrapping several austerity measures brought in by the previous parliament including the new electricity and water prices that will be introduced in May.

The increases will apply to expats and businesses only but MPs are concerned they will result in rising inflation and a higher cost of living in the country.

Read: Kuwait committee approves draft bill scrapping fuel, utility price increases