Tariffs affecting water demand in Abu Dhabi

09 June 2015

New capacity will still be needed

Abu Dhabi’s water demand growth rates have slowed since the introduction of higher tariffs in early 2015, said representatives of Abu Dhabi Water and Electricity Company (Adwec), speaking on the sidelines of MEED’s Mena Water and Power conference in Abu Dhabi on 9 June.

Demand growth in 2015 is still forecast to be 3 per cent, compared to roughly 6 per cent in 2014.

New water capacity will needed to come online in 2017 or 2018, in addition to what is currently under construction. The current reserve margin is just 5 per cent.

However, water demand profiles through the peak summer months will be the most important.

Electricity demand growth cannot currently be estimated due to the inclusion of demand from oil companies in the statistics. The tariff changes were also smaller.

Demand statistics will be collated in the first half of 2016 and a definitive analysis of the effects of the tariff increases will be available in the middle of the year.

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