The Dubai government has created a regulatory body for the utilities sector and will soon put in a framework that could allow the private sector to enter the business, a local newspaper reported.   

The Dubai Executive Council has created a regulatory authority under the Higher Committee for Energy and Environment, Saeed Mohammad Al Tayer, chief executive of the Dubai Electricity and Water Authority (Dewa), told Gulf News.

'The regulator will set up a legislative and monitoring agency that will create a healthy environment to encourage private-public sector partnerships,' Tayer said.

 In January, the government said it will allow public-private partnership in the emirate's utility sector.   

'The regulatory authority will have its own budget. It aims to create a transparent system for private investors that will include water and electricity tariff,' he added.   

To date, Dubai's power and water sector has been government owned and operated, with plants handed over to the public sector after construction.  Dewa is also seeking to issue a new bond in the second quarter of 2010, the firm said in January.

Power demand in Dubai grew 6.3 percent in 2009 to 5,622 MW and is expected to grow at a similar rate this year. - Reuters