Abu Dhabi’s Department of Energy (DoE) has issued the second regulatory control for water, wastewater and electricity operators, capping the revenue limit at 50 billion UAE dirhams ($13.61 billion) for January 2023 to December 2026.
Those controls will apply to Abu Dhabi Distribution Company, Al Ain Distribution Company, Abu Dhabi Transmission & Despatch Company, and Abu Dhabi Sustainable Water Solutions Company, the department said in a statement published by Abu Dhabi Media Office.
“The newly implemented procedures reflect the ongoing transformations in Abu Dhabi’s regulatory framework and ensure the efficiency of companies operating in the sector,” said Ahmed Mohamed Al Rumaithi, DoE Undersecretary.
The controls will enable companies to effectively carry out their operations and manage their activities with increased efficiency, reinforcing their capacity to finance economically and technically viable capital projects in the future, he added.
The emirate’s water, wastewater and electricity sectors will also see an estimated AED16.2 billion ($4.41 billion) of investments in infrastructure development over the next four years, according to an accompanying infographic tweeted by the Media Office.
The statement said the main objectives of the controls are to protect customer interests by ensuring the security of supplies, accommodating the ongoing growth of the sector and safeguarding investor interests by offering a reasonable return on infrastructure investments.
(Writing by P Deol; Editing by Anoop Menon)