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The Regulation and Supervision Bureau issues the first Self-Regulating Generation Licence

The Bureau has granted a Solar Photovoltaic (PV) Self-Regulating Generation Licence to Khalifa Khamis Saeed...

The Regulation and Supervision Bureau issues the first Self-Regulating Generation Licence
Book of Humanitarian Pioneers; local and international achievements - Khalifa Foundation

To take a look at the book click here

Book of Humanitarian Pioneers; local and international achievements - Khalifa Foundation
Tawdheef exhibition 2017

The Bureau will be participating in the Tawdheef Exhibition 2017 which is taking place at...

Tawdheef exhibition 2017
The Launching of new Bureau’s publications in the International Water Summit 2017

Abu Dhabi: 18 January 2017: The Regulation and Supervision Bureau (“Bureau”) has shed lights on...

The Launching of new Bureau’s publications in the International Water Summit 2017
IWS 2017

The Bureau will be participating in the 5th International Water Summit (IWS) that is taking...

IWS 2017
The Regulation and Supervision Bureau receives the “Outstanding Government Services” Award

Given the remarkable and outstanding accomplishments achieved, the Regulation and Supervision Bureau had received the...

The Regulation and Supervision Bureau receives the “Outstanding Government Services” Award
Saudi Delegation of Electricity & Cogeneration Regulatory Authority visited the RSB

The Regulation and supervision Bureau held a meeting with the Saudi delegation of Electricity &...

Saudi Delegation of Electricity & Cogeneration Regulatory Authority visited the RSB
Abu Dhabi Energy Authority chaiman visits SkyLab & meets with Singapore’s Energy Market Authority

The Abu Dhabi Energy Authority has concluded its participation at the Singapore International Energy Week....

Abu Dhabi Energy Authority chaiman visits SkyLab & meets with Singapore’s Energy Market Authority
Chairman of Abu Dhabi Energy Authority visits Singapore International Energy Week Exhibition

The Abu Dhabi Energy Authority is participating at the Singapore International Energy Week, held during...

Chairman of Abu Dhabi Energy Authority visits Singapore International Energy Week Exhibition

Tariffs and charges


All transactions within the water and electricity sector now occur on an economic basis. At the point at which the distribution companies come to supply customers, the government can set tariffs below cost and make up the shortfall in revenue to the distribution companies by way of subsidy. The tariffs and charges can be categorised as:

  • customer tariffs or standard tariffs;
  • the transmission use of system (TUoS); and
  • the bulk supply tariff (BST)

Our statement on water and electricity costs gives the actual cost of supplying water and electricity to the different customer classes.

These unit costs are shown on customer utility bills under ‘Actual cost’.

Customer tariffs & charges

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

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.

Connection charges

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.

Bulk supply tariffs

The distribution companies in the Emirate of Abu Dhabi pay ADWEC a bulk supply tariff (BST) for any water and ..

The distribution companies in the Emirate of Abu Dhabi pay ADWEC a bulk supply tariff (BST) for any water and electricity supplied to them. This charge is calculated each year and is approved by the Bureau.

The calculation of the BST requires the estimation of the cost of procuring and despatching water and electricity to meet the forecasted demand. The calculation of the BST is required to contend with the additional complexity of allocating fuel costs separately to water and electricity from cogeneration plants and the allocation of costs in general to customers inside and outside the Emirate of Abu Dhabi.

Since 2012, the structure of the BST for water and electricity consists of three components:

  • a ‘system marginal price (SMP) charge’ estimated to indicate the short-term marginal costs (excluding back-up fuel (BUF) costs) of providing units at different times of the day;
  • a ‘BUF levy charge’ estimated to reflect the additional costs associated with the burning of back-up fuel rather than primary fuel; and
  • a ‘high peak period charge’ assessed to cover the costs associated with the estimated capacity payments and charged only in the peak demand occurring during the months of June to September inclusive.

The BST is expressed in fils/kWh for electricity and AED/TIG for water. It is charged on an hourly basis for electricity and water purchased at different times of the day, for ‘Fridays’ and ‘Non-Fridays’ and in different months of the calendar year.

Transmission use of system charges

TRANSCO charges the distribution companies (ADDC and AADC) and ADWEC (for exports to utilities outside the Emirate of Abu Dhabi) ..

TRANSCO charges the distribution companies (ADDC and AADC) and ADWEC (for exports to utilities outside the Emirate of Abu Dhabi) a transmission use of system (TUoS) fee for use of its transmission system.

Since 2013, TUoS charges have been restructured and are applied on volume basis, expressed in fils per kilowatt hour (kWh) and AED per thousand imperial gallons (TIG). Each utility now pays TUoS charges based on the units of electricity and water it receives. Similar to BST, TUoS charges are set to vary from off-peak period to peak period of each day, from Fridays to Non-Fridays, and from winter months to summer months.

Therefore, TUoS send the appropriate signals to customers about the economic cost of meeting their demand. Previously, they were expressed in AED per kilowatt (kW) and AED per thousand imperial gallons per day (TIGD) and were paid by the utilities on the basis of their respective shares to the total system peak demands.

TUoS charges cover the investment, operation and maintenance costs of the infrastructure of the transmission systems, excluding assets that are dedicated entirely to a particular customer (which are covered by the connection charges). The TUoS charges are calculated for each calendar year on a basis approved by the Bureau pursuant to the licence granted to TRANSCO.

Tawdheef exhibition 2017

The Bureau will be participating in the Tawdheef Exhibition 2017 which is taking place at ADNEC starting on 30 January to 01 February. The Bureau aims to attract and hire...

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We regulate the

water, wastewater and electricity

sector of the Emirate of Abu Dhabi