Guangzhou, China – New regulations have been passed in Guangzhou aimed at protecting renters from unfair utility charges. The Guangzhou Municipal People’s Congress Standing Committee, in its 54th session, has approved the ‘Management Measures for the Collection of Water and Electricity Fees for Resident Living in Rented Houses’ (hereinafter referred to as the ‘Regulations’). This measure awaits final approval from the Provincial People’s Congress Standing Committee before it can be implemented.
Key Protections for Renters
The core principle of the new Regulations is the requirement for utility fees to be collected strictly ‘by price and by volume.’ This means that landlords or agents collecting water and electricity fees from tenants must adhere to the government’s established pricing for resident utilities and charge based on the actual consumption recorded by the tenant.
Prohibited Overcharging Practices
The Regulations explicitly outline eight types of prohibited practices related to overcharging for utilities:
- Charging tenants a higher per-unit price for water or electricity than what is legally due.
- Collecting fees that exceed the tenant’s actual metered usage.
- For properties with sub-meters installed for individual tenants, manipulating these meters or their accuracy to artificially inflate the recorded usage.
- The total amount of utility fees collected from all tenants exceeding the total amount paid by the landlord or agent to the water and electricity supply companies for the billing period.
- Including a tenant’s share of common area utility costs (e.g., for shared hallways or facilities) into their individual unit’s charges.
- Adding any fees other than legitimate water and electricity charges.
- Imposing management or service fees calculated based on the tenant’s utility consumption volume.
- Any other form of surcharging that violates existing laws and regulations.
Enforcement and Tenant Rights
If any of these violations are confirmed, landlords will be required to refund the overcharged amounts. Furthermore, penalties can be imposed, reaching up to five times the amount of the illegally collected fees. To ensure transparency, landlords are now obligated to proactively present detailed utility payment statements before collecting fees from tenants. In parallel, tenants have the right to directly verify their utility bills with the water and electricity companies by presenting their rental contracts.
This new regulation signifies a significant step towards fairer rental practices in Guangzhou, providing renters with clearer rights and protections against predatory utility billing. The move is expected to bring more accountability to the rental market concerning essential service charges.
