The Bureau, under the Law, has a general duty to protect the interests of water and electricity consumers as to ..
The Bureau, under the Law, has a general duty to protect the interests of water and electricity consumers as to the terms and conditions and price of supply. In practice, the Bureau discharges this duty in relation to price through the economic regulation of the sector’s licensed companies. In particular, the Bureau caps the revenue that can be recovered by the distribution companies. This revenue capping is based on the total economic costs of distribution and supply.
However, in recognition of the fact that the government of Abu Dhabi has historically subsidised the supply of water and electricity, the licence for the distribution companies allows ADWEA to direct that certain customers are 'subsidy customers', and that such customers are charged a tariff determined by ADWEA. The difference between the total revenue that can be recovered by the distribution companies and the revenue they receive from customer tariffs represents the government subsidy to the sector.
Standard tariffs are published by the distribution companies as indicated by ADWEA. Given that, presently, the total economic costs of a unit of water or electricity exceed the published tariffs, the standard tariff customers benefit from the government’s subsidy.
The present standard tariffs are charged on a per unit basis, the electricity customers are charged a unit rate per kilowatt-hour for electricity and cubic meter for water if they have a meter; otherwise, they are charged a fixed monthly amount for their water consumption.
Currently, electricity tariffs vary according to the type of customer (for example, commercial, farms or domestic) and their nationality.
The Bureau's current understanding of ADWEA's tariffs for final customers is as listed in the table see link, below.
Large user tariffs
Large user tariffs are available to customers whose daily consumption of electricity or water is in excess of 1 megawatt (MW) and 10,000 litres respectively. These are required to be cost-reflective and are subject to the Bureau's approval.
Please refer to our ‘Electricity tariffs for large-users in the Emirate of Abu Dhabi’ for further details on electricity tariffs, obtaining large user tariff and the role of subsidy.
New connections for electricity and water are subject to connection charges levied by the distribution companies, subject to the Bureau's approval. TRANSCO also levies connection charges on all parties connecting directly to its transmission system. In this case, connection charges cover the capital costs and the on-going operation and maintenance costs of providing assets required to connect a user to the transmission system.