No Tariff Hikes, Job Losses Planned with Bahrain's New Energy Holding Company

TDT | Manama

Email: mail@newsofbahrain.com

Yasser Humaidan, Minister of Electricity and Water, underlined that the Kingdom's sole intention from the establishment of the Electricity and Water Holding Company is to enable the Electricity and Water Authority (EWA) or the government to buy shares in companies that will be established to produce electricity and water. 

This clarifies the purpose of the new entity, authorised under Royal Decree No. 20 of 2024, and addresses concerns surrounding its role and impact on consumers.

Addressing concerns raised by MP Ahmed Al Salloom, the Minister reassured the public that the creation of the holding company will not affect electricity and water tariffs, nor will it impact the employment of EWA staff. The existing service delivery will continue uninterrupted.

The Minister stressed that the holding company will not be involved in the day-to-day operations of electricity and water provision as this responsibility remains firmly with the EWA. 

As per the Minister's written response, the holding company’s function is purely to manage government investments in the energy sector, facilitating participation in new power generation and water desalination projects. This structure, according to Minister Humaidan, allows for greater flexibility and strategic planning for the future.

This strategic move is seen as a proactive measure to address Bahrain's growing energy demands and prepare for future challenges. The holding company structure offers the potential for attracting private sector investment and fostering innovation in the energy sector. 

It provides a framework for managing the government's stake in new power plants and water facilities, ensuring efficient resource allocation and long-term sustainability.

The upcoming parliamentary session on Tuesday will offer further opportunities for discussion and clarification, as the Minister will be present to address Al Salloom's concerns.