A PROPOSAL to slash utility bills for expats and Bahrainis with more than one home has been rejected by the government.
Parliament and Shura Council Affairs Minister Ghanim Al Buainain told MPs in writing that such a move was not feasible as it would cost the authorities an additional BD40 million.
He revealed that the government has been setting aside BD430m annually to purchase electricity and water from the private sector to meet the rising demand.
Production cost has been increasing on a regular basis, Mr Al Buainain pointed out.
The government will have to balance its expenditure and revenues, and subsidising utility bills further will add to the burden, especially at a time when countries are channelising all resources to tackle the Covid-19 pandemic, he added.
Bahrainis with one home qualify for a subsidised electricity rate of 3 fils per unit, but if they exceed 3,000 units in a month, the rate increases to 9 fils per unit for additional electricity consumed. Those exceeding 5,000 units are charged 16 fils for each unit.
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Meanwhile, expats are charged 29 fils per unit – 866 per cent more than their Bahraini neighbours.
The Electricity and Water Authority (EWA) had earlier informed MPs that it would take no financial support from the government from next year, while continuing to provide subsidised electricity and water.
“Should the EWA agree to reduce rates for expats or Bahrainis with more than one home, it would have to shoulder the cost or seek financial support from the government,” said Mr Al Buainain.
“Under the present circumstances, such a demand cannot be accommodated.”
Mr Al Buainain also indicated that lowering rates would encourage higher consumption and wastage of resources.
The reply is amongst 70 responses presented by the government that would be debated during the weekly session on Tuesday.
The government shouldered the utility bills of 380,000 electricity and water accounts for three months last year, from April to June, under a BD4.5 billion financial stimulus package to offset the impact of the pandemic.
The exemption was then redirected to Bahrainis in their first household from July to December last year.
The minister also indicated that charity societies and clubs could not be exempted from paying utility bills, as demanded by a few MPs.
“Societies and clubs are exempted from municipal fees and a reprieve on utility bills is just not practical.”
Replying to a question on food trucks, Mr Al Buainain said no decision has yet been taken on moving trucks from residential and commercial areas.
Suitable locations are still being determined by the relevant ministries, he added.
Meanwhile, the government has approved plans for a public park in every residential area.
“There are currently 170 public parks, gardens and walkways across the country and work is underway on new facilities,” Mr Al Buainain said.
“We will plan more parks in the future depending on funds available.”
MPs had earlier called for a GCC centre for cybersecurity following a surge in cyber attacks in the region. Mr Al Buainain said the project would be difficult to implement as it would need the approval of all members.
“Bahrain could, however, come up with a national cybersecurity strategy in co-operation with the GCC,” he added, in another reply.
He also outlined measures taken to ease traffic congestion. The minister revealed that public transport system was getting popular with 33,000 people opting to commute in buses last year compared with 16,000 in 2013.
“We are also working on Bahrain Metro, which can accommodate upto 43,000 people a day,” he added.
Meanwhile, four members will be elected to represent Parliament in the Executive Parliamentary Committee, which selects legislators to take part in events abroad. The nine-member panel is headed by Parliament Speaker Fouzia Zainal and also comprises four elected Shura Council members.
Ten MPs will also be tasked with preparing a draft reply to the King’s address at the opening of the National Assembly’s fourth session of the fifth legislative term last Sunday.
mohammed@gdn.com.bh
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