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Thu 16 Oct 2014 09:59 AM

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Dubai electricity authority doubles security deposits for flats, villas

Increase by DEWA relates to new connections only

Dubai electricity authority doubles security deposits for flats, villas

The security deposit required to activate a utility connection in Dubai has been doubled, part of a bid to make sure new tenants will not be held liable for debts incurred by previous dwellers.

Dubai Electricity and Water Authority (DEWA) will increase the refundable deposit required to connect power and water to AED2,000 ($544) for an apartment (up from AED1,000) and AED4,000 for a villa or house (up from AED2,000).

The increases relate only to those seeking new connections, the Dubai authority said.

“DEWA is not increasing security deposits for existing customers in their current premises, but there is a new rate for security deposits for new move-ins, to ensure that new tenants will not be affected by any outstanding bills from previous tenants," the utilities authority said in a statement.

“DEWA would like to emphasise that all security deposits are fully-refundable on settling the final bill, so that residents will continue to receive world-class electricity and water services.”

Veronica Chapman 5 years ago

Disgusting........far to much, the landlord should demand their final bill, before he refunds their security deposit....simple..... He is responsible at the end of the day to make sure his tenants have paid the final dewa bill.
It is time owners of villas started to take some responsibility,
Or pay a real estate company to do all this for him or her......
Not take from the new tenant....imagine, dewa deposit, agency fees, landlords's a wonder companies are not shouting and screaming........another rule change....,,and why is the tenant paying real estate fees, the owners should be paying that for finding a tenant for him....Like all over the world.....

gordon 5 years ago

The contract is between Dewa and the user and not Dewa and the Owner as such why would the owner get involved, unless the owner took over full responsibility which would be rather reckles.

The article did not say the new client would be charged for the outstanding bill, it only states he will be affected.

In Germany it is the renter who pays the real estate fee and not the renter?

JimmyH 5 years ago

Let me tell you how unfair Dewa is to landlords since you have opened the subject:

You may know that a landlord pays a Dewa deposit on handover of his/her unit.

You may not know that since 2011, Dewa in their wisdom, keeps the landlord's deposit even if the unit is rented and a new deposit is collected from the tenant. They will not refund the landlord's deposit until the unit is sold !!!

So Dewa is holding deposits from landlords and tenant simultaneously for the same unit without paying interest on any

W Thomas 5 years ago

Jimmy, it gets better then that. We sold our villa last fall and after getting final clearance letter from DEWA, were told we would not get deposit back until new owner placed his deposit.

Well new owner never did and somehow a tenant is now connected to DEWA. No matter that it was a DEWA error, they still hold our deposit.

On final bill we were able to draw against deposit, however being good citizen customers we were nearly paid in full and outstanding didn't amount to much. Better to be delinquent and ensure your final bill is greater than deposit if you wish to recover.

We have been in Dubai well over 20 years and this once charming place has turned into a money grab. Yes our bags are packed and we will soon be turning the lights out for good. See you back home :)