Tariff hike: Hard times on cards for consumers?

With the lifting of electricity and water subsidies in March this year, expatriates and business owners in Bahrain will bear the burnt of tariff hike.

If any expat or Bahraini with more than one household is getting BD9 bill per month for electricity now, he will be getting BD87 in 2019.

Speaking to DT News, Minister of Energy Dr Abdulhussain Mirza said that it was generally the rule that the prices were increased immediately anywhere in the world but they had adopted a different policy. 

“We have increased the prices in a gradual way so that they may not come under burden immediately and could be adjusted to the new tariffs in the period of next four years,” he said.

Though this policy is quite appreciable, four years is not a very long period. The situation which can emerge after 2019 can compel the Ministry of Energy to revise the tariffs. The worker is earning around BD65 to BD100 now and in the long run the living cost for him and other low income people can be unaffordable. And there is no doubt that the worker is the basic unit without whom no company can work
properly.

Afzal, an expat from India, said that he was quite worried how the small families would be able to afford to live here afterwards.

Another expat Nawaz said that he was worried that the things would not only be quite difficult for the expats but also for the businesses.      

In response to a query, Dr Mirza also clarified that if someone has two or three or four wives, each wife will be allowed to keep separate house with the subsidised electricity and water. In other words if someone has four houses for four wives, his four houses will be considered as one household. According to the new rules any Bahraini could be able to get subsidies only for one household.   

Now the tariff for the first category (1 – 3000 units) is 3 fils / unit. But it will be 6 fils this year, 13 fils next year and 21 fils in 2018 and it will be 29 fils in 2019. According to the new tariffs someone who is getting the electricity bill of BD9 will start getting BD18 from March this year and next year he will get BD39 and in 2018 he will get BD63 and in 2019 the amount will become BD87. Current rate for the second category (3001 – 5000 units) is 9fils/unit but after the lifting of subsidies if someone is getting the bill between BD27 to BD45 now, he will start getting it between BD39 to BD65 this year and next year it will be BD54 to BD90. While in 2018 it will be BD69 to BD115 and in 2019 it will be BD87 to BD145.

For the third category (5001 units and above) the current tariff is 16 fils / unit.  If someone gets BD80 now he will get this year BD95 and next year BD110 and in 2018 he will get BD125 and in 2019 he will get BD145.

The new tariffs will be applicable only for all the expatriates, the Bahrainis with more than one household, big companies and the industrial sector from March 1.

Small and Medium scale businesses which are using up to 5,000 units or getting the electricity bills less than BD80 will not be affected at all. They will continue paying at the price of 16 fils per unit as usual.

 While those using electricity between 5,000 to 250,000 units and are paying bill between BD80 to BD4000 will have to pay BD95  to BD4750 this year and next year BD110 to BD5500 and in 2018 between BD125 to BD6250 while in 2019 this amount will be increased to between BD145 to BD7250.

Large companies using electricity between 250,001 units and 500,000 units and getting bills between 4000 to 50,000 will get this year BD5250 to BD10,500 bill and  next year it will be BD5750 to BD11,500. While in 2018 it will be BD6500 to BD13,000 and in 2019 it will be BD7250 to BD14500.

New water prices are also very disturbing. The domestic consumers who are using between 1 to 60 units ((@ 25 fils / unit) are paying up to BD1.5 now.  But after March this year they will be paying BD4.8 and in the next year the amount will be BD12 and in 2018 it will be BD27 and in 2019 it will be BD45. 

Those who fall in the second category (61 – 100 units @ 80 fils) are paying between BD4.9 to BD8 now. But this amount will become BD12.2 to BD20 from March this year and in the next year it will be BD18.3 to BD30. While in 2018 it will be BD30.5 to BD50 and in 2019 it will become BD45.8 to BD75.

For the third category (101 and above (@ 200 fils / unit) are now paying BD 20.2. From this year they will be paying BD30.3 and in the next year BD40.4 while in 2018 they will have to pay BD60.6 and in 2019, the amount will be BD75.7.

For non domestic water (1 - 450 units @300 / unit) the current bill goes up to BD135 only. While from this year it will become BD180 and the next year BD247.5 and in 2018 it will be BD292.5 and in 2019 it will be BD 337.5.

For non domestic water category (451 and above @400 fils / unit) the customers who are paying now between BD180.4 to BD400 will be bound to pay BD225.5 to BD500 from March this year and next year BD270.6  to BD600 and in 2018 it will be BD315.7 to BD700 while in 2019 it will become BD338.25  to BD750.