Electricity + Water tariffs increase by double!!

Would this hurt the economy of Bahrain ?

I thought foreigners paid extra anyway.

Seems like a little trend perhaps?  The increase etc from last Aug-Sept on certain foods (which hasn't affected me much, I will admit) and utilities now.

I don't know enough about the taxes and politics here to speak at any respectable length, but it seems like it has to affect the package deals some expats would get if utilities would double.  The money has to come from somewhere...

It should not affect the economy. If you look at it from a different angle its a good thing people will now start switching off electrical appliance when not needed and stop unnecessary usage of water.

The irony is the EWA building in Juffair, which glows with all its glory... hope someone takes a note of that and stops the unnecessary wastage.

T&R

I'm afraid, this rate increase will directly effect economy. Because this increase is not only for expats and/or some Bahraini's.

One of my colleague says, his electricity bill is average BD 50. Because of subsidy he was paying like BHD 15. Only increase on electricity rates will increase his expenses avg BD 35.

As per written on newspapers, LNG, LPG, water, fuel rates and some government services fares will increase also.

Electricity, gas and fuel are main power sources of economies. Industrial and commercial companies, financial services, hotels, landlords, etc., will they take all these extra costs on their account and employers will let their companies profits down? I don't think. I'm thinking they will also increase their prices/rates/rents, etc.

Later, due to increase on monthly expenses, individuals will start asking for increments from their employers and/or they will start looking for other opportunities for higher salaries.

Due to these kind of higher costs (power, salaries, other expenses) will employers take these extra costs on their account or will they increase their selling prices/rates?

It's a circle, which directly effects inflation ratio.

logicalindian wrote:

It should not affect the economy. If you look at it from a different angle its a good thing people will now start switching off electrical appliance when not needed and stop unnecessary usage of water.
...
T&R

About unnecessary water usage you may be right. But what about daily electricity consumption? Till when individuals will do this? What about during and after April, when the weather will be warmer then nowadays? Won't they turn their A/C's on for more then 12 hours a day or will they turn their fridges/freezers off, etc.?

On the other hand, what about stores, supermarkets (they are consuming very high level of electricity)? Will they turn off their A/C's, fridges, freezers, lower their lightening, etc.? Won't they increase their prices due to increase on their electricity bills? These kind of small individual savings which you mentioned are always less then their total costs.

I'm afraid, these kind of increases will effect individuals pockets more than they are expecting. Economy is not only based on individual expenses.

Power is one of the major thing which effects inflation ratio, direct or indirect.

Prices will increase.
Businesses will have to increase revenue,  they can only do that by increasing prices.

I'm afraid,  price of coffee at Starbucks would increase

I thought you went to Jasmi's for your beverages gunner?

suburbansam wrote:

I thought you went to Jasmi's for your beverages gunner?

Starbucks is love 

How will this affect expats renting their apartments/villas from Bahraini landlords? What about all-inclusive rental contracts?

5hutterbug wrote:

How will this affect expats renting their apartments/villas from Bahraini landlords? What about all-inclusive rental contracts?

Any extra money has to come from somewhere.  I would imagine the costs would be passed on to the expat individually if they pay their bills or to the company providing the housing - which filters its way back to the expat.

ihsanozbakir, i agree to your points.

As per my understanding Bahrainis will continue to enjoy the subsidy on one Electricity meter per national ID.

Honestly , for expats fueling the economy here , this is bullshit and with todays notification of fuel subsidies stopping - 60% increase from tomorrow its even worse. Time to think about leaving Bahrain

I do understand prices cannot stay the same forever, increases are just how it works.

Are all of these increases really enough to get expats to leave or stay away?

Imagine the poor labourers who have less income.  How can they live in such conditions.
When Bahrain is exempting Small and Medium Businesses,  why not expats who earn below 500 BD to be exempted too?