Is it permissible to pay the water bill from interest [money] if Kahramaa has imposed it on us due to an error on their part, and we are made to bear this error?

It is impermissible to benefit from usurious gains for oneself or for dependents, even if it is to repel injustice, unless the person is poor and in need, in which case they may take only what suffices their need. The holder of ill-gotten wealth must dispose of it by spending it on the welfare of Muslims.