Bahrain’s electricity subsidies in 2026 explained: who benefits from the new half-price tariff

As of February 2026, Bahrain continues to offer substantial electricity subsidies for Bahraini citizens, particularly for their primary residences, reinforcing government support for nationals amid rising living costs. While expatriates and owners of secondary properties pay higher, non-subsidized rates, a key policy update has introduced a notable “half-price” reduction for high-consumption electricity usage for eligible citizens.

Under the revised structure, subsidies apply exclusively to the first home registered in a Bahraini citizen’s name. Electricity tariffs for primary residences are tiered based on monthly consumption, with a major update effective January 1, 2026, significantly reducing the cost burden for higher usage brackets.

For Bahraini citizens living in their primary residence, the electricity tariffs are as follows:
• 0 to 3,000 units are charged at 3 fils per unit, remaining heavily subsidized.
• 3,001 to 5,000 units are charged at 9 fils per unit.
• 5,001 to 7,000 units are charged at 16 fils per unit, reduced by 50 percent from the previous rate of 32 fils.
• Consumption above 7,000 units is charged at 32 fils per unit.

The reduction in the 5,001–7,000 unit bracket represents the government’s targeted “half-price” relief for households with higher electricity needs, particularly larger families.

In contrast, non-subsidized users, including expatriates, commercial consumers, and citizens with secondary or investment properties, do not qualify for tiered rates. Instead, they pay a flat electricity tariff of 32 fils per unit, which was increased from 29 fils effective January 2026.

Additional cost changes also came into effect this year. From January 2026, non-primary homes are subject to a new wastewater charge, with a 20 percent sewage fee calculated based on water consumption, further widening the cost gap between subsidized and non-subsidized households.

The impact on the overall cost of living in 2026 varies sharply depending on residency status. Bahraini citizens living in their primary residence typically spend between BHD 30 and BHD 100 per month on utilities, depending on household size and consumption levels. For expatriates and non-subsidized residents, combined utility costs, including electricity, water, and internet, commonly range from BHD 60 to BHD 120 per month.

Housing costs remain a major factor in household expenses. In 2026, rent for a one-bedroom apartment in Bahrain averages between BHD 350 and BHD 650, while larger family homes typically range from BHD 600 to BHD 1,200 per month.

Residents seeking detailed guidance on billing, account registration, or subsidy eligibility can access official information through the Electricity and Water Authority (EWA).