File image used for illustrative purposes only Image Credit: Agency

Dubai: The electricity and water authority in Dubai (DEWA) issued a decision to cut fuel surcharge on consumption starting December 1. The cut comes as part of the government's decision to pass on savings achieved in fuel consumption, as a result of the increase in solar energy production, to customers.

For residents, the savings will vary from person to person depending on annual rent, energy, and water consumption, etc. However, we have used a sample bill to analyse the savings brought on by these cuts.

Fuel surcharge for electricity will be 5 fils per kilowatt-hour (kWH) instead of 6.5 fils charged earlier. Fuel surcharge for water will be 0.4 fils for Imperial Gallon (IG) instead of 0.6 fils.

We have taken the consumption data for one month of a one-bedroom apartment in Dubai as our sample. The electricity consumption for one month for the sample was 1,699 kWH while the water consumption was 1,760 IG. The cost of this consumption, before surcharge, is assumed to remain the same at Dh390.77 and Dh61.60. 

Before and after the cut

The total fuel surcharge of the month before the announced cut is Dh121. The total bill amount, before housing and sewerage costs which differ based on your tenancy terms, is Dh613.59.

After the announced cut, the fuel surcharge on electricity is Dh84.95 (instead of Dh110.44) while the surcharge on water consumption is Dh7.04 (instead of Dh10.56). The total surcharge, in this case, is Dh91.99, saving you Dh29 each month before VAT.

Adding meter charge of Dh6 for electricity and Dh5 for water to the cost and surcharge, the total cost of consumption is Dh481.7 [Dh390.77+Dh84.95+Dh6] and Dh73.64 [Dh61.60+Dh7.04+5] respectively. Total amount before VAT is now Dh555.34. 

VAT of 5 per cent is charged on this total, adding up to a bill of of Dh583.13, before housing and sewerage fees.

The savings on this sample bill comes up to Dh30.46 each month.

*This is just a calculation based on announced cuts and is not a representation of what your personal bill savings may or may not be. This is a hypothesised calculation and is not be used for legal comparison. Please contact DEWA directly for queries related to your bill.