Under Law No 11 of 2018, the Department of Energy (DoE) has a duty to regulate the central / district cooling sector in the Emirate of Abu Dhabi. Following extensive consultation with the public and private stakeholders, theDOE has launched the District Cooling regulations upon the government approval, comprising technical, legal and economic dimensions.

The economic dimension of this framework will look into aspects of market competition and price regulation, to ensure that:

There is increased fairness and transparency in the market as well as enhance service levels for end-users.
The price for new district cooling schemes is fair and lower than the cost of the best alternative available for cooling.
The benefits of district cooling are properly reflected in end-users tariffs.
District cooling providers can recover their efficient costs and sector profitability is fostered.
The price control process is easy to implement and sustainable in the long term.

District Cooling Regulations are published here, and effective since September 2019.

(a) charges applied at an intra-sector level between operating companies

Electricity and Water Bulk Supply Tariff (BST): Emirates Water and Electricity Company (EWEC) is responsible for setting the Bulk Supply Tariff (BST), which defines the terms on which it sells bulk power and water to its licensed customers within the Emirate of Abu Dhabi, mainly Al Ain Distribution Company (AADC) and Abu Dhabi Distribution Company (ADDC). The BST may also be used to define the terms on which EWEC allocates costs to unlicensed sales outside the Emirate of Abu Dhabi.

Transmission Use of System (TUoS): Abu Dhabi Transmission and Dispatch Company is responsible for setting the TUoS charges to be levied to its customers, mainly Al Ain Distribution Company (AADC), Abu Dhabi Distribution Company (ADDC) and Emirates Water and Electricity Company (EWEC), for their use of TRANSCO’s electricity and water transmission systems. The objective of the TUoS charge is to allow TRANSCO to recover its MAR as per the price control as well as provide suitable economic signals to its customers for efficient use of its transmission systems.

Recycled Water Bulk Supply Tariff (BST): Abu Dhabi Sewerage Services Company (ADSSC) is responsible for setting the Bulk Supply Tariff (BST) rate for the sale of bulk recycled water to its customers, mainly Al Ain Distribution Company (AADC) and Abu Dhabi Distribution Company (ADDC). The Distribution companies sell the recycled water to their customers (end-users) who pay a standard tariff decided by the government for the use of recycled water.

(b) tariffs charged to end-users

Customer tariffs or standard tariffs are applied to the majority of customers for the use of electricity, water and recycled water. All tariffs are decided by the government, however DoE advises on tariff/subsidy levels and importantly appropriate tariff structures to provide signals to customers to drive efficient consumption.
For more information on end-user tariffs, please refer to the main websites of the Distribution Companies (AADC and ADDC).

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