KUWAIT CITY: Kuwait’s Parliament on Wednesday passed a bill allowing the government to raise power and water charges on foreign residents and on businesses but exempted the Gulf state’s citizens.

Thirty-one MPs voted in favor while 17 members opposed it. The second and final round of voting will take place after two weeks.

MPs initially rejected the bill but later approved it after Kuwaiti citizens were exempted.

If given the final clearance, it will be the first time in 50 years that Kuwait raises power charges.

Like other crude exporters, Kuwait’s oil-dependent revenues dwindled since oil prices crashed by over 70 percent from its mid-2014 peak.

The bill stipulates to raise power charges in apartment buildings, overwhelmingly used by foreigners, from the current flat rate of two fils (0.7 cents) per kilowatt gradually to up to 15 fils (five cents) per kilowatt.

For commercial uses, it will be raised from two fils per kilowatt to 25 fils per kilowatt. Water prices will also be more than doubled.

Electricity and Water Minister Ahmad Al-Jassar said during a heated debate in Parliament that the government was paying around $8.8 billion annually to subsidize power and water production.

If no action was taken, consumption would triple by 2035 and subsidies would rise to $25 billion, the minister said. The aim of the bill was to cut consumption by over 30 percent, he said.