Dubai villa utility cost / EK cap

[Comanche]

Just noticed the EK utilities contribution is capped at 21.600 AED per year (for 'normal' living purposes), yet on some threats it is mentioned to expect at least 5000 AED per month in charges for a villa, which would be 60.000 a year, meaning I'd have to factor in 40.000 a year extra. This is by no mean criticism, it is part of my budgeting and comparisons. I am sure there are plenty of EK drivers out there that could shed some light on this?

[BigGeordie]

There are a huge number of variables which will dictate the size of your utility bills. Big gardens with lots of grass will cost an absolute fortune in the summer, but you wouldn't expect to pay 5,000 Dhs for more than 5 months of the year. During the winter when you don't have the a/c on all day and the lawn doesn't need watering every day you could get bills down to well under 1,000 Dhs a month.

With a little thought it is possible to have bills well within the company cap in most villas.

For comparison, I live in a 2 bedroom flat. The a/c is included in the maintenance charge ("central chiller") and my monthly water/electricity bills are less than 200 Dhs.

[Wizofoz]

This has been a saga which has come to nothing.

Two years ago, EK introduced the cap. It was a flat-out contract breach for existing employees, though may have been Incorporated in new contracts.

I live in a four-bed villa in DSO with a slightly larger than average back-yard, and we weren't particularly careful with our utilities use.

Looking at the previous years bills, we were some-what (4-5000dhs) over budget for the year.

We started being a bit more conscious about usage (turned some of the A/C off when not in use, watered the garden as little as possible, conscious of putting lights off) We also got monthly statements from DEWA to monitor usage.

Doing this, without any particular hardship, we were on track to be below budget for the year.

DEWA then stopped providing monthly statements (a "System change"which meant this was only temporary- it's been 18mths!!)

As such, the company couldn't really bill people when we had no way of monitoring our usage, and besides, the fact that any such charge would be a contract breach and may result in a lot of claims at the Employment tribunal was not unknown to the company.

After the first full year, they announced that usage was significantly down and that they were not going to recover money from people who went over budget this year, but reserved the right to do so in the future.

We've heard nothing since- and SOME people have pools, sheds with A/C etc that use a LOT of power and water.'

Personally, I think it was a manager being seen to do something when the crisis was on, but has really been no more than a bluff.

So, in short, you can run a Villa for under the cap, but I don't think it matters if you don't!!

[donpizmeov]

Your accommodation will determine if this is a factor or not. Apartments, and most Villas will be fine. If you have a large garden you may have to pay. The company has sent letters to several friends stating that they are above the cap so far this year. All these guys have large gardens and 2+kids. they keep their Villas cool over summer and their grass and gardens watered, so don't appear to be wasteful. The only reason noone was charged last year is because DEWA changed the billing system in Sep 09, and EK did not have sufficient records to work out how much individuals owed.
If in company accommodation, you go to the DEWA web site, enter your DEWA number you will find out your bill amount owing. To find out amounts of bills already paid you need to ring the customer help desk, explain you are in EK company accommodation and they can email you the details.
DEWA increased charges 15% on the 1st Jan. Ek is "investigating" this, but as of yet, has not increased the Cap. I see this going the same way as the education allowance, where Cap increases will lag Dewa increases and over time you will pay more and more.

Keep recovering,

The Don

[Wizofoz]

Thanks Don, that's more up to date than my info. We haven't recieved a communication from the company, so I guess we're below the cap.

Have any of the guys who got this message explained that any charge will be a breach of contract?

[donpizmeov]

I am uncertain if they have gone the breach of contract route yet. One is waiting to see the final outcome before deciding what to do, as the period mentioned covers summer so he is thinking maybe winter will bring the total below the max.

the Don