Dubai: Some Dubai tenenats have complained of over charging of housing fee being charged with the Dubai Electricity and Water Authority (DEWA) bills on monthly basis.

However, a Dubai Municipality official said tenants overcharged on their housing fee will be refunded the extra amount. He said that tenants should carefully read their utility bills every month and should complain in case they have any issues.

Tenants should approach the municipality with their Ejari-registered contract and their Dubai Electricity and Water Authority (Dewa) bill, said Saif Al Shamsi, Director, Finance Department, Dubai Municipality.

Those living in Bur Dubai side of the city can approach the municipality’s Al Manara branch while those in Deira should visit the Al Twar branch. After verifying any discrepancy, the excess amount can be refunded or credited.

The municipality fee is calculated as five per cent of the annual rent. It is collected in 12 equal monthly instalments that appear in the monthly Dewa bill.

For example, an annual rent of Dh55,000 should incur a monthly housing fee of Dh230.

Some tenants only notice the discrepancy after months of paying a higher amount, while others never check their bills thoroughly.

The fee is applied only on the rent stated in the standard tenancy contract registered with the Ejari (My Rent) system of the Real Estate Regulatory Authority (Rera). Registering with Ejari is mandatory for all rent contracts in Dubai and must be updated for any changes.

The fee is sometimes applied on the rent value as of Rera’s rental index for different areas, which may not be exactly the same as the actual rent of the unit.

In rare cases, tenants said they have been charged more than five per cent of their annual rent. However, the discrepancy was promptly resolved, they added. In one case, a tenant said, the error was adjusted automatically.

A Western expat said he realised he had been paying Dh1,070 a month in housing fees since October 2014 when he should have been paying only Dh575, based on his annual Dh138,000 rent.

“When I approached the authorities, there was no explanation but they said ‘you are right’. There were no arguments or discussions, and it was all resolved within seconds,” he said.

The extra amount that he had paid was adjusted as credit in his monthly Dewa bill, he added.

Another tenant, an Indian expat in Deira, said he was once charged Dh100 extra but when he rechecked online, it had been corrected.

“Once you know what the correct amount is, you just have to check that figure is the same every month in your bill. I check but I know others don’t,” he added.

A third tenant, a British transport service operator, said he had never checked if the fee was correct.

“To be honest, I didn’t even know it was there or how it is calculated. The bill doesn’t say your rent or break down how the fee is calculated,” he said.

Another Indian tenant in Deira said he has “never faced any issues with my bills or housing fees nor have I heard of anyone who does. But there are people who never check”.

Dewa rules

A comment from Dewa was not available. It says on its website (dewa.gov.ae) that “housing fees is included in Dewa bills as per the instruction of Dubai Municipality. It is calculated as five per cent of the yearly rental charges. For any queries, clarifications and complaints please call Dubai Municipality Housing Fees Toll free number 800900”.