On Wednesday, officials in the Northern Emirates announced a number of initiatives meant to encourage growth, one of which is a reduction in electricity tariffs for some industrial enterprises.
Reduced electricity rates for Northern Emirates industries
In a bid to stimulate economic growth, authorities have declared a significant reduction in electricity rates for industrial companies in the Northern Emirates. The Emirates Water and Electricity Company (EWEC) revealed a revised pricing structure and additional incentives aimed at encouraging higher consumption among these firms.
New Pricing Structure and Incentives
The updated pricing segments are designed to benefit companies that consume substantial amounts of electricity. Firms using over 10,000 megawatt hours per month will see tariffs starting at 32 fils per kilowatt-hour, potentially dropping to as low as 26 fils per kilowatt-hour. This reduction is part of a broader initiative to lower operational costs for industrial players.
In addition to the reduced tariffs, EWEC has introduced several incentives to further support businesses. These include flexible fees for installation services, exemption from insurance fees, and the elimination of additional charges for using electricity meters. Such measures aim to make it easier and more cost-effective for companies to expand their operations.
Beyond industrial companies, the new pricing structure will also benefit the technology sector, specifically disaster recovery data centers (DRDs). These centers are crucial for providing backup facilities that help restore and rebuild technology infrastructure when primary data centers fail.
This initiative was launched during the third session of the 'Make in the Emirates' forum, highlighting the government’s ongoing efforts to bolster the industrial sector. The Ministry of Industry and Advanced Technology, in collaboration with its partners, has been working to enhance incentives and strengthen the capabilities of companies within this sector. Omar Al Suwaidi, the ministry's undersecretary, emphasized that the new reduced energy tariffs align with the 'Make in the Emirates' initiative, which aims to increase the industrial sector's contribution to the gross domestic product (GDP).
Engineer Yousef Ahmed Al Ali, CEO of EWEC, underscored the significance of this initiative, stating that it reinforces the company's commitment to fostering a future where the energy sector plays a pivotal role in driving industrial growth. By reducing electricity costs and offering additional incentives, EWEC aims to support the expansion and competitiveness of local industries.
This move is expected to have a substantial impact on the Northern Emirates' industrial landscape, making it more attractive for existing businesses to scale up and for new enterprises to establish operations. The reduced operational costs associated with lower electricity tariffs can lead to increased production capacities, job creation, and overall economic development in the region.
The reduction in electricity rates and the introduction of flexible incentives reflect a strategic effort by EWEC and the Ministry of Industry and Advanced Technology to enhance the Northern Emirates' industrial sector. By aligning with the 'Make in the Emirates' initiative, these measures are set to boost the sector's contribution to the national economy, drive sustainable growth, and ensure the region remains competitive on a global scale.
With these initiatives, the Northern Emirates are well-positioned to attract more industrial investments, support technological advancements, and foster a robust economic environment conducive to long-term development and prosperity.