Bur Dubai Raises Water, Electricity Rates Starting October

The Bur Dubai Municipal Council voted on July 7 to adjust utility tariffs for residential properties in the creek district, with the first phase of higher rates applied to bills issued after October 1.

The decision follows a review of consumption records from the Dubai Electricity and Water Authority that showed steady demand growth in Bur Dubai over the past two years. Council members tied the change to the need to cover maintenance costs on aging distribution networks serving older neighbourhoods such as Al Fahidi and Al Seef.

Changes for Households and Small Businesses

Residents in buildings connected to the municipal grid will pay an additional 0.15 dirhams per kilowatt-hour above current tiers, according to the tariff schedule attached to the council motion. A typical two-bedroom apartment using 800 kilowatt-hours monthly would see an increase of roughly 120 dirhams on the electricity portion of the bill. Small shops along Al Fahidi Street that operate air-conditioning units during peak hours will face the same stepped rates.

Water charges will rise by 0.75 dirhams per cubic metre for usage above 20 cubic metres, with the adjustment listed in the same council document. The measure does not alter commercial rates for hotels or large offices located outside the designated creek zone.

Payment Schedule and Support Measures

The government says the policy will take effect in stages, beginning with October billing cycles and reaching full implementation by March 2027. The Dubai Municipality 2026 budget paper records an allocation of 40 million dirhams for a one-time subsidy program that covers the first three months of increased charges for households registered with the community support registry before September 15.

Applications for the subsidy open at the Bur Dubai Civic Centre on August 1 and close on September 10. Residents who do not register will receive the new rates without offset from the first billing cycle onward.