Saudi Arabia’s Ejar platform now mandates linking water and electricity bills directly to tenants when signing rental agreements. This initiative aims to reduce financial disputes and streamline the rental process by ensuring tenants are responsible for utility payments throughout their lease.
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Why This Change?
The updated policy addresses common issues where utility payment responsibilities between landlords and tenants were unclear. By linking utilities to tenants from the start of a rental contract, Ejar aims to minimize disputes and protect the rights of citizens and residents, ensuring they have access to all services provided by utility companies.
Directives from Regulatory Authorities
As part of the “My Meter” initiative, the Saudi Electricity Regulatory Authority and the Saudi Water Authority have instructed service providers to:
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- Document Meter Information: Utility companies must accurately record meter details and the beneficiary’s information, whether the individual is a property owner or a tenant.
- Link to the Actual Beneficiary: Ensure that water and electricity services are registered under the tenant’s name during the lease term, transferring all financial liability for utility payments to them.
- Mandatory for Rented Properties: For rented properties with independent meters, documenting and linking meters to the new tenant is now compulsory. This linkage will be updated when a rental contract is issued through a real estate broker and will be terminated when the lease ends.
Simplified Documentation Process
To facilitate the meter documentation process, beneficiaries can use the “Tawakkalna” app, provided by the Saudi Authority for Data and Artificial Intelligence (SDAIA), for easy access. Additionally, the process can be completed through the digital channels of utility providers, including the Saudi Electricity Company, the National Water Company, and Marafiq.
Benefits of the New System
The updated system brings several advantages for all parties involved:
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- Clear Financial Responsibility: Tenants will be held accountable for their utility bills, reducing disputes over unpaid balances between tenants and landlords.
- Enhanced Communication: The system facilitates direct communication between tenants and service providers, ensuring that maintenance notifications and service updates reach the intended recipient.
- Improved Invoicing Procedures: Linking utilities to the actual tenant will help address issues where bills fail to reach the correct beneficiary, ensuring accuracy in billing.
Potential Impacts of Non-Compliance
Failure to document and link meters may result in service interruptions and prevent beneficiaries from accessing additional services provided by utility companies. Ensuring compliance with these requirements is essential for uninterrupted service.
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