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Time to review government subsidies

Electricity subsidies might hinder energy conservation efforts, says DEWA senior executive

| | May 30, 2011 | 9:40 am
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Electricity subsidies might hinder energy conservation efforts, says DEWA senior executive

Amal Koshak, DEWA Senior Manager, Demand & Tariff Management, said in an interview conducted on the occasion of DEWA “Conservation Award – For a Better Tomorrow, 2010-2011” that the Government should look at reviewing electricity subsidies regulations.

“Electricity is very important, particularly in this country, where air conditioning accounts for 60% of the total electrical consumption,” she said, and added, “However, reviewing electricity subsidies is a government’s decision. DEWA is not here to enforce, but I think it’s definitely something the government should look at.”

Commenting on the awards instituted by DEWA, Koshak said that that DEWA conservation award was only one of the over 35 environmental initiatives launched by the authority. The others included a number of conservation schemes for government buildings, retailers, hotels and shopping malls.

Asked on why DEWA had not yet introduced a similar initiative targeting private companies, she said: “Retrofitting requires significant investments. Furthermore, the payback period is not very attractive. The financial crisis has also made companies across the region more conservative in their spending patterns. But we are definitely looking into that.”

Koshak said that she was confident that the Green Buildings Regulation, which, has already been approved by Dubai’s Energy Council, would be enforced after a three-year grace period. She said she believed it would play a major role in improving buildings’ energy conservation rates.


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