Tuesday, August 22, 2017

Hike in electricity and water tariffs

Kuwait has been considering for a long time to cut down on subsidiaries, so as to put ease on its revenue structure which predominantly depends on crude oil sales. Many moves have been made in this regard. For example, On 1st April 1999 Kuwait introduced KD 1 fees for government health clinic visits and KD 2 fees for government hospital visits; these fees were for meeting with the doctors and also included for basic medicines & lab tests (Ministry of Health - Ministerial Decision 392/1999). Previously, no charges were levied.

One of the moves that garnered a lot of attention was the Fuel price hike. Naturally the Petrol (Premium, Super and Ultra) prices hike had a lot of hue and cry compared to previously subsidiary removal of Diesel and Kerosene which shot from 55 fils to 170 fils (Currently at 105/110 fils - Market value fluctuations; each month revision based on international crude oil prices). Petrol prices were hiked from 60 fils to 85 fils for Premium, 65 fils to 105 fils for Super and90 fils to 165 fils for Ultra but later brought down to 150 fils.  (Council of Minister decision 32/2016) These prices are not subsidiary removal prices as they would be more higher at 160 fils and onward. Citizens of Kuwait have a monthly ration/account of Petrol which is given for free after which they will be charged the market price (started with 75 litres and now increase to 100 litres per month). Similarly some sectors and industries avail the subsidised rate (55 fils) of diesel and kerosene; for example Kerosene for government related bakeries for the Tandoori/Afghani/Irani Kabous/Roti. Also agricultural/government sectors avail similar diesel subsidy.

At the same time period, the Council of Ministers had passed the decision for reduction in subsidy towards electricity and water on 16th May 2016 (Council of Ministers' decision no 20/2016). The implementation of the decision is to take effect in 4 stages giving time for all sectors of Kuwait to implement rationalisation and efficient methods in terms of electricity and water usage by reducing wastage like applying more LED lights.

Stages of implementation of new electricity and water tariffs.
  1. 22nd May 2017 (22/05/2017) - Commercial Sectors
  2. 22nd August 2017 (22/08/2017) - Investment Sectors
  3.  22nd November 2017 (22/11/2017) - Government Sectors
  4. 22nd February 2018 (22/02/2018) - Industrial, Agricultural Farms and rest of the sectors.
All Investments sectors (Apartment buildings and Residential homes) will be paying from 22nd August 2017. All the public Sector (government related properties) will start paying from 22nd November 2017. The last but least, Chalets (beach houses), Farms (Agricultural or Poultry) and Stables (For horses or other types of Animals) from 22nd February 2018. All Commercial establishments (Malls, shops or Office buildings) are already paying since 22nd May 2017.

NOTE (for Residential and Apartment buildings)
The amount to pay for Electricity is 5 fils per unit (1 KWHr) and for Water KD 2 per 1000 Gallon of Water. (uniform units throughout the month/year)

Following are the modes of Payment and enquiry for electricity and water related matters:

1. Download the App on Google Playstore or Iphone Itunes Appstore.

Name of App: MEW-CAS created by MEW-CAS

Languages available: Arabic and English

Once you download, you just need to choose the consumer type (Residential), Enter Civil Id and enter Meter Number. 

You can load a photo of the meter reading (if you want),

Enter the meter reading and then you can make payment using KNET. (sometimes you may have to wait for 15 minutes after entering Meter reading for system to update)

2. You can also make meter reading updates and payments on the website www.mew.gov.kw
You can make payments (if KNET is not available) at the MEW consumer affairs offices that are available in each area (Once you have updated the meter reading)

3. Official Social Media accounts for MEW Consumer Affairs for Meter Reading and updates.
Instagram: @consumerservics https://www.instagram.com/consumerservics/
Twitter: @consumerservics https://twitter.com/consumerservics
Whatsapp: 98760001, 98760002, 98760003, 98760004, 98760005, 98760006 (One can take photos of their electricity & water meter readings along with the meter numbers and send them to the above Whatsapp numbers to get them updated) CLICK HERE to see an instruction video or view the video at the bottom of the post. 

4. Go to the nearest electrical offices near to the area you reside between 8am till 1:45pm (Official Working hours)

5. Recently the Ministry has started a service for the Elderly citizens, a home service where someone from Ministry will come and assist in getting the readings and update the readings along with options of making payment using KNET facilities. 

Information to keep handy:
  1. Civil Identity Number of Registered User
  2. Meter Reading of Electricity or Water (Better if you have a photo or on smartphone)
  3. Meter Number or Premises Number 
  4. PACI Number of Flat and Building (Public Authority for Civil Information)
MEW Consumer Affairs Tweet about reading Meters. Photo Courtesy to MEW @ConsumerServics.

Electricity Meter Reading with Meter Number. Photo Courtesy to MEW @ConsumerServics.

Water Meter Reading with Meter Number. Photo Courtesy to MEW @ConsumerServics.

Just for information.
Previous price of electricity was 2 fils per unit (1 KW) and 800 fils per 1000 Gallons (imperial) of Water.
Without Subsidy, Electricity would be 28 Fils upto 40 fils per unit (1 KW) AND water would be KD 10 to KD 12 per 1000 gallons (imperial).

  • Council of Ministers' Decision 20/2016
  • Minister of Electricity and Water Circular 3/2017
  • Minister of Electricity and Water Circular 20/2017
  • Council of Ministers' Decision 48/2005

Council of Minister Decision 20/2016 Pg 1

Council of Minister Decision 20/2016 Pg 2

Council of Minister Decision 20/2016 Pg 3

Minister's Circular 2/2017  Pg 1

Minister's Circular 2/2017  Pg 2

Minister's Circular 28/2017 
Using the Whatsapp numbers to update the electricity and water meter readings
CLICK HERE if the above video does not work

Modes of Payment that can be done for electricity and water meter readings.
CLICK HERE if the above video does not work

Announcement for new rates on Commercial sector from 22/05/2017 and rationalization steps
CLICK HERE if the above video does not work