EXPLORE

The Abu Dhabi water and electricity sector is structured on a ‘single buyer’ model, in which all production capacity (power or water) is purchased centrally by the Emirates Water and Electricity Company (EWEC) Previously called Abu Dhabi Water and Electricity Company (ADWEC). Water and electricity are then sold to distribution and supply companies via an annually adjusted bulk supply tariff (BST) for onward sale to the final customers. The two distribution companies (AADC and ADDC) also pay the Abu Dhabi Transmission and Despatch Company (TRANSCO) the transmission use of system (TUoS) tariffs for using its transmission system to transport water and electricity from the production plants to the distribution systems.

The Abu Dhabi Sewerage Services Company (ADSSC) collects, treats, and disposes of the wastewater received from the customers.

Except for the sale of water and electricity to the final customers, all transactions in the water and electricity sector are carried out on an economic basis reflecting the true costs and do not involve any subsidies.

The single buyer, transmission, distribution, supply, and wastewater network companies are monopolies in their service or business areas, so they are regulated economically via price control reviews.

The DoE approves, on an annual basis, a bulk supply tariff and a transmission use of system (TUoS) tariff being imposed to ensure that EWEC and TRANSCO receive certain returns via the applied price control system. As for AADC, ADDC, and ADSSC, any revenue deficiency shall be determined via the applied price control system, which is the difference between customers’ tariffs and the government subsidy.

The Abu Dhabi Energy Sector is governed by the following Laws:
• Law No. 11 of 2018 concerning the establishment of the Department of Energy;
• Law No. 17 of 2005 concerning the establishment of the Abu Dhabi Sewerage Services Company (as amended by Law No. 18 of 2007, Law No. 12 of 2008, and Law No. 12 of 2009, among others);
• Law No. 2 of 1998 concerning the regulation of the water and electricity sector (as amended by Law No. 19 of 2007 and Law No. 9 of 2009, among others)
The Energy Sector is defined in Law No. 11 as including all activities, businesses, and services relating to the following:
• The production, processing, storage, transmission, distribution, supply, sale, and purchase of gas, petroleum, and their by-products.
• The generation, storage, transmission, distribution, supply, sale, and purchase of electricity of all types (from clean, renewable, and conventional sources).
• The production, treatment, desalination, storage, transmission, distribution, supply, sale, and purchase of water.
• The collection, treatment, and disposal of wastewater and wastes, as well as the recycling of the by-products of wastewater treatment.
• The production, storage, distribution, and supply of cooling liquids for central cooling usages.
Department of Energy
Law No. 11 sets out the responsibilities of the Department of Energy, and these responsibilities include the following:
• Proposing strategic and executive plans for the Energy Sector and supervising their execution.
• Proposing strategic and executive plans for the Energy Sector and supervising their execution.
• Monitoring and supervising all affiliate entities, with respect to disbursement from their budgets, revenues, compliance with their duties and responsibilities, and approving their strategic and executive plans.
• Regulating all aspects of the Energy Sector through developing policies, codes, standards, rules, resolutions and executive and operating circulars.
• Monitoring and supervising the Energy Sector as per the related legislations, agreements, and treaties applicable locally and internationally in the Sector, and in coordination with the concerned entities inside and outside the UAE.
• Licensing all authorities, entities, companies, and personnel working in the Energy Sector and monitoring their compliance with providing services of optimal quality as per the applicable legislation and in coordination with the concerned entities.
• Proposing fees, tariffs, and prices related to its authorities and submitting the same to the Executive Council for approval, as per the applicable systems.
• Submitting periodic reports and analytical studies to the Executive Council with respect to the Department’s authorities.
• Encouraging investment and partnership with the Private Sector for projects relating to the Department’s authorities in coordination with the concerned entities.
• Representing the Energy Sector within and outside the UAE.
• Promoting energy and water efficiency initiatives and programs.
• Developing, regulating, and supervising technical, safety, and customer care standards.
• Monitoring the compliance of the Energy Sector (in coordination with relevant entities within Abu Dhabi and outside the Emirate).
• Coordinating with all relevant stakeholders in connection with matters affecting the Energy Sector.
• Other authorities or tasks assigned to the Department by the Executive Council.

One of the responsibilities of the Licensing and Compliance section at the DoE is to grant licences to entities and individuals authorising them to conduct and engage in a wide range of regulated activities and to supervise the manner in which such regulated activities are undertaken.

The license may be issued for a specific activity or multiple activities, which can be conducted in the Emirate of Abu Dhabi.

The following is a list of the regulated activities that must be carried out under the Licence issued by the Department of Energy:
• Generation, storage, transmission, distribution, supply, sale and purchase of electricity of all types (clean, renewable, traditional).
• Production, treatment, desalination, storage, transmission, distribution, supply, sale and purchase of water.
• Collection, treatment and disposal of wastewater, and wastes, as well as recycling the by-products of wastewater treatment.
• Production, storage, distribution and supply of coolant for district cooling systems.

DoE ensures customer satisfaction through its online services, allowing easy and fast access to its services. For licensing services, please visit the DoE Services page

License Compliance 2014 - 2018
Under Article (55) (2) of Law No. 2 concerning the Regulation of the Water and Electricity Sector (as amended), the Department of Energy (the Department) is required to issue, monitor, and enforce compliance with Licences pursuant to this Law.


Full compliance with the Licence conditions will lead to the development, operation, and maintenance of a safe, efficient, and economic water, wastewater, and electricity sector in the Emirate of Abu Dhabi.

Over the last three years, the Regulator has been working with its Licensees to develop a framework for monitoring, measuring, and reporting Licensees’ levels of compliance with the conditions of their Licences.

The Department is now in a position to release our Licensees’ compliance figures, and these statistics will be updated each quarter.