Travel ban eyed for electric bill defaulters

The Saudi Electricity Company (SEC) will soon be shifting to a new system of billing for power consumers in the Kingdom. Bills are henceforth to be in the name of the tenant and not the owner as is the case now.
The new billing system, which will be in sync with the common practice in some of the GCC countries, will come into force as soon as the software, which is being supplied by a world-renowned software company, is put in place. The SEC has already received the nod to implement the new system from the Electricity and Co-generation Regulatory Authority (ECRA), the regulatory body in the power sector, sources said, adding that talk of the new billing system had been doing the rounds for some time now.
The new system will seek to eliminate disputes between landlords and tenants over unpaid bills, and is expected to be fair to both the parties. However, both landlords and tenants are curious to find out how the mechanism will be implemented.
Various authorities including the Saudi Chamber of Commerce and Shoura Council have been working toward bringing a uniform rental agreement system in the Kingdom. They have been coordinating and holding discussions with the Property Disputes Department and other government officials concerned to develop a mechanism to ensure that defaulters are brought to book and prevented from traveling.
A report by the Ministry of Justice for the first two months of the year showed that courts in 11 governorates were handling 840 cases related to disputes between landlords and tenant, with Makkah Province topping the list with 265 cases of disputes in courts.
Police stations are entrusted with the task of mediating between landlords and tenants, and arresting runaway tenants to stand trial and pay their dues.
All houses in the Kingdom particularly those in major cities are rented out on the basis of written contracts which are drawn by real estate agents. Most often, these agreements do make a mention of utility bills and safety measures, but the emphasis is on the rental amount. In fact, most of these agreements have no legal value as it does not bear any attestation or counter signature by any competent authority like the Chamber of Commerce or Umdah.
A Palestinian working in the realty sector told Arab News that the new billing system would safeguard the interest of both parties. The tenant, however, has the responsibility of noting down the meter reading on termination of the contract and cancel the subscription.
Observers believe that while the new system would prove to be less of a hassle for expatriates, Saudi tenants will face more problems, as they often change houses following disputes with landlords on the issue of rent payments.
Currently, five halalas are charged for up to 200 KW of power for residential consumption, which is the cheapest in the world. The subsidy component for electricity is also the highest in the world.