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Technical article

Cooling a Home in Dubai: What the Official Tariff Says

They have heard that summers in the Gulf are hot, and they want to know what cooling a flat really costs.

Picture a couple named Paul and Helen. They are 66 and 63. They have heard that summers in the Gulf are hot, and they want to know what cooling a flat really costs. They do not want a guess. They want the rate on a page.

For Dubai, the rate is on a page. The Dubai Electricity and Water Authority lists its residential slab tariff. The page said it was last updated on 16 May 2026.

The electricity rates

Monthly use AED per kWh
0 to 2,000 kWh 0.230
2,001 to 4,000 kWh 0.280
4,001 to 6,000 kWh 0.320
6,001 kWh and above 0.380

The page also lists a fuel surcharge labelled "October 2026" of AED 0.060 per kWh. A 5% VAT applies. The page showed no separate summer rate.

A worked example (my arithmetic)

Say a flat used 1,500 kWh in a hot month. At AED 0.230, that is AED 345. Add the AED 0.060 surcharge, which is AED 90. The total is AED 435 before VAT, and about AED 457 with 5% VAT. If use doubled to 3,000 kWh, the first 2,000 kWh would cost AED 460 and the next 1,000 kWh would cost AED 280, which is AED 740. With the surcharge of AED 180 the total is AED 920 before VAT. The slabs mean the price per unit rises as use rises.

I made up the two usage figures. Your own meter history, or the building's, would give a better number.

Water

Water is billed per cubic metre: AED 7.700 up to 27, AED 8.800 from 27 to 54, and AED 10.120 above that. A surcharge of AED 1.100 per cubic metre is listed for October 2026.

What is left open

You could…

  • Ask for last summer's bills before you sign a lease.
  • Compare a month in the cooler season with one in August.
  • Look at the official page again before you decide, since the surcharge is labelled by month.

An accountant or lawyer who works with Americans abroad could confirm any points that touch your own case.

What would you do in the hottest weeks if the bill is not the only thing that troubles you?

Figures are estimates for planning, based on public data. Date read: 10 October 2026.

Sources

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