US embassy cable - 05KUWAIT2923

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FREE WATER AND ELECTRICITY? YES, IF YOU'RE KUWAITI

Identifier: 05KUWAIT2923
Wikileaks: View 05KUWAIT2923 at Wikileaks.org
Origin: Embassy Kuwait
Created: 2005-06-29 15:36:00
Classification: UNCLASSIFIED
Tags: ENRG ECON KU
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

291536Z Jun 05

 
UNCLAS KUWAIT 002923 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG, ECON, KU 
SUBJECT: FREE WATER AND ELECTRICITY?  YES, IF YOU'RE KUWAITI 
 
 
This cable is sensitive but unclassified; please protect 
accordingly.  Not for Internet distribution. 
 
1.  (U) On June 27, 2005 Kuwait's National Assembly 
unanimously approved a law that will waive up to 2000 Kuwaiti 
Dinar (about $6,850) of unpaid electricity and water bills 
per Kuwaiti household.  Electricity and water issues have 
been debated between the GOK and the National Assembly for 
many years due to the failure of the government to send out 
invoices and collect payments on time.  This law applies only 
to Kuwaiti citizens (about 965,000) and will not be extended 
to the 1.7 million expatriates living in Kuwait. 
 
2.  (U) The good news is that Kuwaitis who have paid their 
bills won't miss out on the GOK's largess.  A 2000KD credit 
will be given to all household accounts, whether or not they 
are overdue on their payments.  For households that have paid 
their bills the 2000KD will be held as a credit against 
future charges.  For households that have more than 2000KD in 
overdue charges, the credit will be automatically applied to 
this debt.  However, if the families do not start making 
regular payments towards the remainder of their overdue 
bills, the credit will be withdrawn. 
 
3.  (SBU) During a July 21 meeting at the Ministry of Energy, 
U/S Yousef Al-Hajeri told Econ/C and visiting DOE officials 
that many Kuwaitis have refused to pay their electricity and 
water bills since 1991.  He explained that many Kuwaitis have 
a strong sense of entitlement to all of Kuwait's natural 
resources and feel that they shouldn't have to pay for basic 
utilities.  However, he added, for humanitarian reasons the 
Ministry could not just disconnect their water or electric 
services. 
 
4.  (U) Unofficial estimates put the total cost of this new 
law at KD 350 million (about 1 billion USD). 
 
 
******************************************** 
Visit Embassy Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
******************************************** 
TUELLER 

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