Under Law No 11 of 2018, the Department of Energy (DoE) has a duty to regulate the central / district cooling sector in the Emirate of Abu Dhabi. Following extensive consultation with the public and private stakeholders, the DoE is currently working closely with the Government to finalise and establish a regulatory framework for district cooling, comprising technical, legal and economic dimensions.
The economic dimension of this framework will look into aspects of market competition and price regulation, to ensure that:
- There is increased fairness and transparency in the market as well as enhance service levels for end-users.
- The price for new district cooling schemes is fair and lower than the cost of the best alternative available for cooling.
- The benefits of district cooling are properly reflected in end-users tariffs.
- District cooling providers can recover their efficient costs and sector profitability is fostered.
- The price control process is easy to implement and sustainable in the long term.
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