New municipality fees in Abu Dhabi continue to cause headaches. The problem is actually not the fees. This paper has argued that such fees will build the economy, spur growth and encourage the construction of new infrastructure projects that are critical to the economic health of the emirate. The problem stems from the implementation of these fees and the lack of clarity from authorities.
At the start of 2017, fees amounting to 3 per cent of tenants’ annual rent began appearing on some people’s electricity bills. Many found that the fees were backdated to February 2016 and were asked to pay the backdated sum in one single amount. With no time to plan for this additional expense and only one month to pay without fear of penalty, many people were understandbly upset with the implementation of this fee.
The Abu Dhabi Distribution Company, the body responsible for the fee collection, promised to streamline the process and address legitimate concerns. Three months later, questions continue to linger. Amid confusion over who is responsible for paying the fee, some people have been billed for 11 months to cover last year, while others have been warned that their electricity will be cut off if they don’t pay.
It is in everyone’s interests that all questions regarding the municipality fee be resolved quickly and clearly. Not only will the money go to critical projects that will improve the economy in Abu Dhabi but the new set of regulations is also a test case for additional changes such as the introduction of value added tax. Confusion over who is required to pay has left a bitter taste.
As we have argued in the past, it is absolutely paramount for authorities to clearly communicate changes. The fact that so many people remain in the dark about when and if they will be subject to this set of fees more than a year after their introduction is the wrong type of implementation for what will be an overall positive for the economy.

Source: The National