The Bulk Supply Tariff (BST) and the price controls allow the calculation of the total economic costs of water and electricity supply in the Emirate. From these costs it is possible to calculate customer tariffs on a full cost basis.
All transactions within the water and electricity sector now occur on an economic basis. At the point at which the distribution companies come to supply customers, the government can set tariffs below cost and make up the shortfall in revenue to the distribution companies by way of subsidy. The clear regulation of economic costs through the PWPAs, BST, and price controls on the procurement, transmission and distribution businesses ensures that the subsidy is kept to a minimum level.
Our 'Statement on water and electricity costs 2013' gives the actual cost of supplying water and electricity to the different customer classes.
These unit costs are shown on customer utility bills under 'Actual cost'.