Manama: Subsidies on electricity bills will be lifted gradually to limit the detrimental social and economic repercussions on consumers and companies.
Energy Minister Dr Abdulhussain Mirza said the plan would be implemented over four years and the decision to lift subsidies resulted from the current financial situation in Bahrain and the region and plummeting oil prices.
“The government is keen on gradual implementation of the new prices to avert any negative impact on consumers and the national economy.”
Shrinking
The prices of non-domestic energy and water prices were readjusted in 2013 as a first step before expanding the measure to include all consumers.
Dr Mirza said that shrinking state revenues made it difficult to continue subsidising electricity and water. The government allocated BD350 million to subsidise electricity and water during the fiscal years 2013 and 2014, in addition to BD325m last year.
According to latest statistics released by the Electricity and Water Authority, there are 367,000 electricity accounts, 70 per cent of which are classified as domestic, and 30pc trade, industrial and governmental.
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