Revealed: Energy subsidies cost UAE $7bln-$10bln in 20 years | ZAWYA MENA Edition:
New electricity tariffs should be introduced in the UAE and other countries in the Gulf Cooperation Council (GCC) region in order to drive down expenditures on power subsidies, which are costing the governments millions of US dollars every year, according to a new study.
The report by Strategy& Middle East that was released this week said that over the past 20 years, the Gulf states have spent more than $120 billion on energy subsidies, while in the UAE, the accumulated figure stands at $7 billion to $10 billion.
While the high subsidies are putting a strain on government coffers, the report said that the current electricity pricing structures in the region are also not sustainable, hence reforms must be rolled out. It added that if the pricing structures are kept unchanged, governments in the Gulf region will incur an additional $150 billion in energy subsidies, as power consumption is expected to continue rising.
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