Hamad Al Rahoumi: Thousands of citizen farmers were affected by the decision

“Economy”: Raising the prices of “farm electricity” does not aim to exploit the consumer

  • The Ministry of Economy confirmed the performance of its role in consumer protection.

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  • Hamad Al-Rahoumi: “Electricity is not a luxury commodity to raise its prices for farmers with such a big jump.”

  • "Economy" confirmed in its written response that the tariff depends on the policies and budgets of the entity concerned with providing the service.

    Emirates today

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The Ministry of Economy informed the Federal National Council that it does not have (as an entity responsible for the consumer protection file), any details regarding the decision to increase electricity prices in farms subject to the services of the Federal Electricity and Water Company, as this company is owned by the government and is not subject to the provisions of the Companies Law, but confirmed that « Raising electricity prices on farms does not aim to exploit the consumer, but rather has several other considerations.”

In a written response to a parliamentary question regarding “the rise in electricity prices in farms owned by citizens,” the ministry stressed that electricity and water supply operations are carried out according to economic bases, and their tariffs depend on the policies and budgets of the entity concerned with providing the service.

The questioner called on the First Deputy Speaker of the Federal National Council, Hamad Ahmed Al-Rahoumi, to deal with the rise in electricity prices for farmers in accordance with the articles of the Consumer Protection Law, especially since “the damage is caused to a category that exceeds thousands of citizen farmers, due to a price jump for a basic commodity, which is electricity".

He added, "The rise in prices chose the weakest and least profitable segment."

In detail, an official report by the Ministry of Economy confirmed that the ministry performs its competence and role in consumer protection.

It also cooperates with the local authorities concerned with this file in each emirate, to work to protect consumer rights by ensuring the quality of goods and services provided to him, obtaining them at the declared price, and maintaining the health and safety of the consumer when he obtains the good or service.

The report, which was submitted by the ministry to the Federal National Council, in response to a parliamentary question directed by the first deputy speaker of the council, Hamad Ahmed Al-Rahoumi, to the Minister of Economy, Abdullah bin Touq Al-Marri, about “raising the value of the electricity bill in an exaggerated way for citizen farmers”, stated that the Ministry of Economy is making efforts Efforts to provide an appropriate and safe environment when purchasing a commodity or receiving a service, and to address any practices that may harm the consumer, by receiving complaints and taking the necessary measures in this regard, in order to help achieve a balance in the relationship between the consumer and the supplier.

He explained that «the application of the Consumer Protection Law is entrusted to the Ministry of Economy, especially with regard to monitoring the movement of prices, and it implements this task in coordination with the competent local authorities and the federal and local government agencies concerned with the supervision and control of the supplier’s work in the sectors that it supervises or monitors.

Including the work of the Union Electricity and Water Company, which is subject to the supervision of the Ministry of Energy and Infrastructure,” noting that “the operations of supplying electricity and water are carried out according to economic bases, and their tariff depends on the policies and budgets of the entity concerned with providing the service.”

The report pointed out that the Union Electricity and Water Company, through its general manager, provided an explanation showing the reasons for the decision to increase electricity prices, and that this company is owned by the government and is not subject to the provisions of the Companies Law, so the Ministry of Economy has no details other than what was announced in the media.

The report stressed that “the decision to raise electricity prices on farms does not aim to exploit the consumer, but rather has other considerations,” stressing that “the introduction of the new tariff for consumption for the agricultural sector in the areas served by the Union Electricity and Water Company needs to be reviewed by the supervisory authority, which is the Ministry of Energy and Infrastructure.” To understand the justifications and objectives that the Ministry of Economy cannot deduce or extrapolate without reviewing the federal entity supervising the Union Electricity and Water Company.”

The report said:

"Electricity is not a luxury commodity to raise its prices on farmers with such a big jump," Rahoumi said, stressing that "the new prices will have a very big and direct impact on this category, which basically needs more support."

Al-Rahoumi told «Emirates Today»: "I directed my question regarding the increase in electricity prices for citizen farm owners to the Minister of Economy, as he is the first concerned with consumer protection, and because there is damage to the category of citizen farmers, due to the price jump for this basic commodity, compared to three times lower prices in Other regions of the country, because they are affiliated with other local companies or institutions.”

Al-Rahoumi stressed the need to deal with this file in light of the articles of the Consumer Protection Law, especially since there are farms in some areas that are separated by hundreds of meters from other farms and receive electricity services at much lower prices than these farms because they fall within the coverage of local electricity companies affiliated with another emirate, stressing "The rise in prices chose the weakest and lowest-income segment of its agricultural production."

• Farms separated by hundreds of meters from other farms... and get electricity services at much lower prices.


• The new tariff in the areas served by the Union Electricity and Water Company needs to be reviewed.

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