“Chiller free” in a Dubai listing means you won't get a separate air-conditioning bill: either the landlord or the building pays the district cooling company, or the home has its own AC units whose power runs through your Dubai Electricity and Water Authority (DEWA) bill. In a district-cooled home that isn't chiller free, you can be billed a fixed capacity charge, a metered consumption charge, or both. No law defines the phrase, so the tenancy contract decides who pays.
- District cooling: Empower charges AED 750 per refrigeration ton (RT) a year for capacity and AED 0.568 per refrigeration ton-hour (RTh) used, plus fuel surcharge, a meter fee and 5% VAT.
- Split AC on DEWA: no cooling bill, but the AC's power is billed at 23 to 38 fils per kWh by slab, plus a 6 fils fuel surcharge in November 2026.
What does chiller free mean in Dubai?
Chiller free means the cooling cost isn't billed to you separately. Listings use it for two set-ups: a centrally cooled building where the landlord, developer or owners' association pays the chiller or district cooling bill, and a home with split or ducted units on its own electricity meter, where cooling shows up in your DEWA bill instead.
Neither Dubai's district cooling rules nor its tenancy law uses the phrase. The Dubai Land Department (DLD) says in its FAQ that who pays for air-conditioning depends on the contract, and that where a building can't meter each unit, tenants may be asked to contribute to cooling costs collected by the developer or owners' association. Treat “chiller free” in an ad as a promise to get in writing.
How is district cooling billed in Dubai?
District cooling is billed in two main parts: a capacity charge for the cooling load reserved for your unit, measured in refrigeration tons (RT), and a consumption charge for the chilled water you actually use, measured in refrigeration ton-hours (RTh). Providers may add a fuel surcharge, a meter or billing fee, a deposit and a one-time connection or activation fee.
Under Executive Council Resolution No. (6) of 2021, companies supplying or billing district cooling in Dubai, free zones included, need a permit from the Regulatory and Supervisory Bureau (RSB), and the Dubai Supreme Council of Energy (DSCE) must approve every charge. The RSB's tariff rules, RD10 (version 1.4, February 2026), list the only charges allowed and cap several; an unapproved charge carries an AED 100,000 fine under Resolution No. (87) of 2025.
Empower, the Emirates Central Cooling Systems Corporation, publishes its residential rates. The developer sets each unit's RT by its area and type, and Empower's own example is a 6 RT unit paying AED 4,500 a year in demand (capacity) charges, billed monthly in advance. Consumption is read from your meter and billed monthly in arrears.
| Charge | Empower's published rate | RSB rule (RD10, February 2026) |
|---|---|---|
| Capacity (demand) charge | AED 750 per RT a year, billed monthly | Approved per building; a unit pays only its allocated share; no indexation |
| Consumption | AED 0.568 per RTh | Cap of AED 0.643 per RTh, fuel surcharge included |
| Fuel surcharge | Passed through as DEWA notifies; no figure published | Cap of AED 0.075 per RTh |
| Meter or billing fee | AED 30 a month or AED 50 a quarter, by location | AED 30 a month for new or renewed billing services |
| Connection or activation fee | Varies by project; shown during registration | Activation fee capped at AED 200, once per new customer |
| Security deposit | Varies by project; shown during registration | No more than eight months of capacity charges |
| Non-payment | AED 500 disconnection fee | Reconnection up to AED 500; late fee up to AED 100 per bill |
Every charge carries 5% VAT. A building's penalty for inefficient chilled-water use (“low delta-T”) can never reach a unit's bill. Capacity tariffs are approved per building, so other providers and billing agents can charge differently from Empower: ask for your building's rate before you sign.
Who pays for cooling: the tenant, the landlord or the owners' association?
Whoever the contract names. DLD's guidance is that air-conditioning costs and maintenance follow the agreement between landlord and tenant. There are three possible payers: the tenant, who registers with the cooling provider using the Ejari; the landlord, who pays in a chiller free lease; and the owners' association, which pays shared cooling through the service charge.
| Set-up | Capacity charge | Consumption | Where to confirm it |
|---|---|---|---|
| District cooling, chiller free lease | Landlord | Landlord | The contract's additional terms |
| District cooling, cooling not included | Landlord or tenant, as the contract says | Tenant, from the unit's meter | The contract and the provider's registration |
| Building that can't meter each unit | Developer or owners' association collects it | Same | The service charge budget |
| Split or ducted AC on the unit's DEWA meter | None | DEWA account holder | DEWA account; the contract for repairs |
Empower registers owners (with the title deed) and tenants (with the Ejari and Emirates ID), and charges the new owner or tenant its connection fee. In jointly owned buildings, DLD lists air-conditioning among the utility bills that service charges cover: see our guide to service charges for landlords.
The tenancy law, Law No. 26 of 2007, settles repairs rather than bills. Article 16 makes the landlord responsible for maintenance that affects your use of the home, which covers an AC that stops cooling, and Article 22 has the tenant pay government fees for using the property; both apply unless the contract says otherwise. Neither names cooling charges, so put them in the contract.
Chiller free, district cooling or a split AC on DEWA: which costs less?
For a tenant, a chiller free home is the cheapest to run, because the cooling bill is the landlord's; if you pay for it at all, it is through the rent. Between paying district cooling yourself and running split units on DEWA, no provider or regulator publishes a like-for-like figure: it depends on the contracted RT, how much you cool and the units' efficiency.
| Chiller free | District cooling billed to you | Split AC on DEWA | |
|---|---|---|---|
| Fixed cooling charge | None to you | Capacity charge (Empower: AED 750 per RT a year) | None |
| Usage rate | None to you | Per RTh (Empower: AED 0.568, plus fuel surcharge) | Per kWh: 23 to 38 fils, plus 6 fils fuel surcharge |
| Move-in costs | DEWA only | DEWA, plus the provider's deposit and fees | DEWA only: AED 2,000 deposit for a flat, AED 155 in fees (small meters) |
| While you're away | Nothing to you | Capacity charge continues | Nothing for cooling with the AC off |
A worked example from the published rates, before VAT. A 6 RT unit pays Empower AED 4,500 a year in capacity charges, AED 375 a month on average, whether the AC runs or not, plus AED 56.80 per 100 RTh used, the fuel surcharge and the meter fee; Empower keeps charging capacity even while a unit is voluntarily disconnected. A split-AC home using 1,500 kWh in a month, AC included, pays AED 345 at DEWA's first-slab rate plus AED 90 in fuel surcharge.
So the fixed charge matters most: it weighs least on a household that cools all summer and most on an owner whose flat sits empty. To compare two flats, add a year of cooling bills to the cooling-paid flat's rent and set it against the chiller free rent. Leasing an office instead? See our guide to cutting DEWA bills in offices.
What should you check in a tenancy contract?
Check that the cooling arrangement is in the contract's additional terms, not just the ad: who pays the capacity charge, who pays consumption, who pays the provider's deposit and connection fee, and whether that holds at renewal. If the ad says chiller free and the contract is silent, ask for a clause. Start by checking the ad's permit.
- The wording: “chiller free” or “AC included in the rent”, with capacity, consumption, fuel surcharge and meter fees each assigned to someone.
- The account: which company bills the unit, in whose name, and who pays its deposit and fees. RSB rules require deposits back within five working days of the billing agreement ending.
- The last occupant's balance: Empower issues a clearance certificate only once all dues on the unit are paid.
- Repairs: who services the fan coil units and thermostats (the landlord under Article 16, unless agreed otherwise).
- Renewal: to make you start paying for cooling, a landlord must give notice at least 90 days before the lease ends (Article 14); see our RERA rent increase guide.
- Moving out: Empower's tenant final settlement needs the owner's no-objection letter if the lease ends early or expired over 15 days before. Close it with DEWA and your Ejari cancellation.
What should buyers and landlords check before buying?
Before buying a district-cooled unit, find out its contracted capacity in RT, the provider and its tariff, whether capacity charges sit in the service charge or on the unit's own bill, and any unpaid balance. Together they set a fixed yearly cost that you carry whenever the unit is empty or let chiller free.
- Capacity: the charge is RT times the tariff, and a unit may be billed only its allocated share of the building's capacity, never a share based on installed equipment.
- Provider: the RSB lists its permit holders online. A single-building system (the building's own chiller plant, billed by sub-meter) may charge units for consumption only, up to AED 0.80 per RTh.
- Service charge: look the building up in DLD's Service Charge Index and ask the owners' association whether unit cooling is in the budget; our comparison of older buildings and new builds shows why it matters.
- Yield: a chiller free let puts the cooling bills on you, so include them in your true rental yield. Buying with a tenant in place? The lease's cooling terms carry over: see tenanted property.
What can you do if a cooling bill looks wrong?
Raise it in writing with the cooling provider or billing agent first, with the bill and your meter readings. If that fails, file a complaint through the RSB's online form; the RSB rejects complaints sent without documents or before you have tried the provider. A dispute with your landlord over who pays goes to the Rental Disputes Center.
Resolution 6 requires every bill to show the contracted capacity, the consumption and the rate for each. Empower tests a meter on request and charges AED 160 only if it proves accurate.
Not sure what a listing's “chiller free” covers? Browse our properties for rent and ask our leasing team to get the cooling terms in writing; landlords can hand cooling accounts and renewals to our property management team.
Frequently asked questions
What does chiller free mean in Dubai?
You get no separate air-conditioning bill: the landlord or building pays the cooling provider, or the home's own AC units run on your DEWA bill. It isn't a legal term, so confirm it in the contract.
Is chiller free better than district cooling?
For a tenant, chiller free removes the capacity charge (Empower's is AED 750 per RT a year) and the consumption bill. Compare its rent with the other flat's rent plus a year of cooling bills.
Do I still pay DEWA in a chiller free flat?
Yes. Chiller free covers cooling only; electricity and water stay on your DEWA account, with an AED 2,000 deposit for a flat and AED 155 in activation fees for small meters.
How much is the Empower deposit?
Empower's deposit and connection fee vary by project and are shown during registration. RSB rules cap a unit's deposit at eight months of capacity charges.
What is a district cooling capacity charge?
A fixed charge for the cooling load reserved for your unit. Empower's is AED 750 per refrigeration ton a year, billed monthly, even when the AC is off.
Can my landlord start charging me for cooling during the lease?
Not without your agreement. To change the terms at renewal, the landlord must give notice at least 90 days before the lease ends (Article 14); disputes go to the Rental Disputes Center.
Sources
- Executive Council Resolution No. (6) of 2021 (PDF): permits, approval of charges, bill contents
- Executive Council Resolution No. (87) of 2025 (PDF): fine for unapproved charges
- RSB: RD10 Tariffs, Charges and Fees, v1.4 (PDF) and RD04(d) (PDF): allowed charges, caps, deposit refunds
- RSB: Regulating Efficient Cooling and Consumer Protection: permit holders, complaints
- Empower: Charges Explanation, Registration, FAQs and E-Final Bill: rates, fees, deposits, clearance
- DEWA: Slab Tariff and Move-in: electricity rates, fuel surcharge, deposit and fees
- Dubai Land Department: Frequently asked questions and Service Charge Index: who pays for air conditioning, service charges
- Law No. 26 of 2007 as amended by Law No. 33 of 2008 (PDF): Articles 14, 16 and 22
Checked on 1 November 2026.
