Dubai Electricity and Water Authority (DEWA) introduced a new tariff structure on 1 March that will see electricity bills rise by as much as 65 percent. For a typical office tower on Dubai's Sheikh Zayed Road with annual energy bill of around AED3 mil, this could mean additional costs of AED2 mil, according to Markus Oberlin, General Manager of facilities management company Farnek Avireal.

For hotels, the bottom line impact will be even greater. Based on Farnek Avireal's energy database, a typical five-star city hotel has a total energy bill of up to AED7 mil a year, while a similar category beachside hotel would expect to pay AED15 mil. Under the new plan, these types of facilities will face increases of AED4.5 and AED10 mil respectively.

Announcing the new electricity and water tariffs recently, Saeed Mohammad Al Tayer, DEWA Managing Director and CEO, said: "The new tariff system will encourage people to keep a closer eye on their electricity and water consumption. It will also pave the way towards a more responsible utilisation of natural resources. The....move will help Dubai to meet one of the major global challenges and to integrate a conservation culture within society." A similar pricing structure is also being introduced for water charges. UAE nationals are excluded from the new tariffs, but only for their houses and farms.