Abu Dhabi DoE updates violation lists for developers, businesses; fines up to $2.72mln

Penalties apply to licensed entities, real estate developers, facility owners, energy services firms

Image used for illustrative purpose. Skyscrapers in Abu Dhabi.

Image used for illustrative purpose. Skyscrapers in Abu Dhabi.

Getty Images

The Abu Dhabi Department of Energy (DoE) announced on Wednesday that it has updated its list of violations and administrative fines that will affect all licensed entities, real estate developers, facility owners, energy services companies and individuals.

Some UAE companies could face hefty fines worth up to 10 million UAE dirhams ($2.72 million) for violating government rules related to the provision of electricity, water, district cooling and wastewater services.

The energy department identified 72 violations, with fines ranging from 2,000 to 10 million dirhams. New violations include restricting, distorting, or preventing competition in the sector, or damaging consumer and public interests.

“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 protect customers and end users,” the Department of Energy said in a statement.

“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,” it added.

According to the updated list, those who restrict, distort or prevent competition in the energy sector, or harm the interests of consumers, could be slapped with an administrative penalty of 10 million dirhams.

The same penalty will be imposed on power producers who fail to provide the required production capacity to cover the expected water and electricity needs at all times, an adequate water and energy capacity to the licensed transmission companies. Those who also fail to comply with the economic purchase methods for the new or additional energy production, the fuel or any other products or services related to their licensed activities, may be liable to pay a fine of 10 million dirhams.

According to the Department of Energy, the 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 energy sector, customers and individuals, and any damages caused.

(Writing by Cleofe Maceda; editing by Seban Scaria)


Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Policy