Dubai: New tenants have to pay a higher utility security deposit in Dubai but existing utility customers in their current premises will not be impacted, officials confirmed on Wednesday.
According to customer service agents of Dubai Electricity and Water Authority (Dewa), the refundable deposit has doubled – increasing from Dh1,000 to Dh2,000 for apartments and from Dh2,000 to Dh4,000 for villas.
One agent said the new rate started on September 22 and applied to new tenants of flats and villas, regardless of the number of bedrooms or area.
Dewa on Wednesday confirmed in a statement that new move-ins have to pay “a new rate”, without elaborating further.
Security deposits are taken as part of the tenancy and Dewa connection process in Dubai and elsewhere. The deposit is refunded after settlement of the final bill when the tenant moves out. However, some tenants fail to clear their final dues in time.
On Wednesday, Dewa said it 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”.
It added: “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.”
Further details — such as the basis for determining the deposit rate or how much the new rate has changed — were not available by the time of going to press on Wednesday.
