A total of BD103 million is still owed to the Electricity and Water Authority (EWA) in unpaid bills.
Electricity and Water Affairs Minister Yasser Humaidan told MPs, in writing, that the arrears were divided across both commercial and residential accounts.
He said BD42m was pending from subsidised residential accounts, BD28.8m from unsubsidised residential accounts, and BD32m from non-residential accounts.
“To ensure payment compliance, the ministry employs periodic follow-ups and advanced measures for expatriates, including requiring a deposit when opening or closing an account,” Mr Humaidan added.
“If arrears reach the deposit amount, service is immediately disconnected, and it is only restored after full payment.
“For consumers struggling to pay overdue bills, the ministry offers various solutions, including direct deduction agreements and fixed deductions.
“In certain cases, we allow installment plans for outstanding debts to help consumers make regular payments.”
Mr Humaidan said these measures aim to support consumers while ensuring the authority’s financial stability and uninterrupted provision of essential services.
“The annual budget previously allocated to the EWA, amounting to BD350m, was gradually reduced since 2017 and fully eliminated by 2022,” he said.
The minister was responding to a question by MP Mohammed Al Ahmed on EWA’s financial status.
“The EWA continues to develop transmission and distribution networks to meet the increasing demand for electricity and water services,” said Mr Humaidan.
“Electricity and water production in Bahrain are currently managed by private sector companies, while EWA oversees the operation and maintenance of transmission networks.
“The future direction of EWA, however, does not involve privatisation but rather focuses on regulating the sector.”
The minister said a key initiative is underway for a new sector law to separate operational and maintenance roles from regulatory and oversight functions.
“This separation aims to align with international best practices, particularly those in the GCC region, enhancing transparency, governance, and operational efficiency while safeguarding consumer interests and ensuring service quality and reliability.”
He added that this restructuring would positively impact the financial sustainability of the sector by improving the monitoring of operational expenditures and evaluating the viability of capital investments.
“This will not only enhance efficiency, but also boost transparency and trust in the system while ensuring optimal use of financial resources,” he added.
The minister also highlighted the efficiency of smart meters that rely on advanced technology.
“These meters are widely adopted globally, not only for their accuracy in measuring consumption but also for their ability to provide data that enhances network management,” he explained.
“Smart meters also measure electricity quality, allow consumers to track their usage, and enable remote reading, significantly reducing the need for manual visits and associated costs.
“These meters minimise estimated readings and allow for automatic disconnection in cases of excessive loads that could impact the network.”
Mr Humaidan also noted that smart meters offer faster activation of services, allowing remote connection or disconnection within minutes through online service requests, eliminating the need for human intervention.
“Our meters meet high-quality specifications, and we evaluate suppliers to ensure compliance with these standards before contracting with them,” he said.
“The EWA conducts inspections on meters prior to installation and performs random post-installation checks.
“The authority uses certified calibration devices in line with global standards to maintain accuracy in its operations.”
Addressing concerns about potential complaints regarding smart meters and their impact on government subsidies, the minister affirmed that no grievances have been reported yet.
“Government subsidies are calculated based on specific criteria outlined in Ministerial Resolution No 1 of 2016 concerning electricity and water tariffs,” he explained.
“Subsidies are automatically applied based on the total monthly consumption of the customer, taking into account the number of days in each month to avoid any adverse effects on subsidised users,” the minister explained.
Mr Humaidan said the government was implementing a strategic plan that includes various initiatives to develop Bahrain’s electricity and water sector over the next four years.
Regarding the establishment of the Electricity and Water Holding Company, the minister clarified that its purpose was to own or participate in owning investments and companies operating in the electricity and water sector or related fields.
“It will have no direct impact on the services provided to citizens, nor will it affect the current operations and services of the EWA,” he noted.
“Additionally, the establishment of the company will not affect the current employees working at the authority.”
Mr Humaidan will appear during Tuesday’s weekly session to respond to further queries by MPs. The minister, who is the Tender Board chairman, will also respond to a question by MP Dr Hisham Al Asheeri on disputed contracts.
mohammed@gdnmedia.bh
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