Wednesday, September 19, 2018
Notice to Residents - Air Conditioning Chill Water - 13-Sept-12

To whom it may concern,

In order to address the queries arising from owners with respect to the invoicing of chilled water charges the management of Al Hamra Real Estate would like to clarity the following:

  1. Each of the apartment buildings within the Al Hamra Development has a centralised chiller system that is used to provide air conditioning to each individual unit. This system requires the supply of fresh water and electricity in order to operate and there is a cost associated with the overall consumption of these elements similar to the consumption of electricity and water utilised directly by each apartment. It is this cost that is now being invoiced to each apartment.

  2. The electricity and water consumption costs associated with the chiller system do not form part of the annual community management fees levied under the terms of the Property Management Agreement annexed as schedule (C) to the Apartment Sale Agreement. The annual community management fees does however include cost elements associated with the annual maintenance of the chiller system and estimated partial replacement costs (which caters for capital replacement and non-recurrent expenditure) together with common area air conditioning systems, lift maintenance, common area electricity consumption, fire protection pest control, building security, and common area cleaning. In addition there are also proportionate charges for the maintenance of all areas external to the boundary of the buildings including but not limited to swimming pools, community road networks, car parking areas, water. systems, landscaping, irrigation, security, waste removal and street lighting. Differences in service charges for apartment buildings compared to villas arise mainly due to the additional plant and machinery maintenance costs which villas do not have e.g. lifts, chiller system. fire systems etc.

  3. Article (8) of the standard form Al Hamra Real Estate Development LIC Apartment Sale Agreement states that the 'Purchaser shall pay all connection charges and bills for water, gas, electricity, sewage and other services provided to the Apartment'. Therefore Al Hamra Real Estate is lawfully invoicing apartment owners under this clause for the supply of water and electricity used in the operation of the chiller and owners are therefore required to pay for their proportionate share of these costs.

  4. The decision was taken to invoice the end user of the apartment directly for the consumption of the electricity and water relating to the chiller system. The reason behind this decision is to create a greater awareness and culture towards responsible energy consumption within the village. The concern of including this within the annual community management fees would be that the end user, in the case of a tenant will not have any idea of the cost of consumption which would make efforts to control this cost more difficult. Furthermore a similar approach is being followed by many of the major property developers in the UAE.

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