AD electricity fines from Dh2,000 to Dh10 million

Eudore R. Chand

ABU DHABI 22 October 2020: The Abu Dhabi Department of Energy (DoE), has announced it updated its Schedule of Violations and Administrative Fines, affecting all licensed entities, real estate developers, facility owners, energy services companies, and individuals.

There are now 72 violations, with fines ranging from Dh2,000 to Dh10 million.

New violations include restricting, distorting, or preventing competition in the sector, or damaging consumer and public interests; imposing fees, tariffs, and prices that have not been approved; non-compliance with the DoE’s environment, health and safety management systems; non-compliance with the installations, fittings and equipment standards set by the DoE; and delay or failure to implement corrective actions against violations, said Wam.

The new rules aim to ensure that entities providing wastewater management, district cooling, water or electricity services adhere to the terms of their licenses, which protects customers and end-users.

It also seeks to ensure that the sole energy provider in the emirate commits to preparing tenders and purchasing production capacity, as well as electricity and water output, in accordance with the regulatory frameworks set by the DoE. These procedures ensure the transparency and integrity of the regulations, and avoid any discrimination between potential investors by the energy provider.

Fines for each violation are calculated based on the costs of inspection, control and follow-up, the severity of the violation and its impact on the emirate’s energy sector, customers and individuals, and any damages caused.

The violations and penalties are in line with local and international standards and global best practice. They will be implemented in accordance with Abu Dhabi’s regulatory environment and frameworks.

The decision builds on the responsibilities and authorities given to the DoE as per Law no. 11 of 2018 on the Establishment of the Abu Dhabi Department of Energy, which tasked the department with licensing and regulating institutions, entities, companies, and individuals operating in Abu Dhabi’s energy sector, as well as monitoring their compliance with the terms of their licenses and the regulatory requirements in force in the sector.

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