Law
No. (6) of 2011
Regulating
Participation of the Private Sector in
Electricity
and Water Production in the Emirate of Dubai[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After
perusal of:
Law
No. (6) of 1997 Concerning Contracts of Government Departments in the Emirate
of Dubai and its amendments;
Law
No. (7) of 1997 Concerning Land Registration Fees and its amendments;
Law
No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law
No. (19) of 2009 Establishing the Supreme Council of Energy;
Law
No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate
of Dubai;
Law
No. (35) of 2009 Concerning Management of the Public Funds of the Government of
Dubai;
The
legislation regulating free zones in the Emirate of Dubai;
Decree
No. (1) of 1992 Establishing the Dubai Electricity and Water Authority and its
amendments;
Decree
No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
and
Executive
Council Resolution No. (2) of 2010 Establishing the Regulation and Supervision
Bureau for the Electricity and Water Sector in the Emirate of Dubai,
Do
hereby issue this Law.
Title of the Law
Article (1)
This
Law will be cited as "Law No. (6) of 2011 Regulating Participation of the
Private Sector in Electricity and Water Production in the Emirate of
Dubai".
Definitions
Article (2)
The following words
and expressions, wherever mentioned in this Law, will have the meaning
indicated opposite each of them unless the context implies otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
SCE: |
The Supreme Council of Energy. |
|
DEWA: |
The Dubai Electricity and Water Authority. |
|
Bureau: |
The Regulation and Supervision Bureau for the Electricity and Water
Sector in the Emirate of Dubai. |
|
Regulated Activity: |
Any of the activities related to the production of electricity and/ or
the desalination and remineralisation of water for the purpose of supplying the
Transmission System with the produced Electricity and/ or Water. |
|
Licence: |
A document issued by the Bureau authorising a Licensee to conduct any
of the Regulated Activities specified therein. This includes the terms and
conditions contained in this document. |
|
Licensee: |
Any entity licensed by the Bureau to produce Electricity and/ or Water
in the Emirate in accordance with the provisions of this Law. This includes, a
Project Company. |
|
Exemption: |
A document issued by the Bureau exempting a Licensee from compliance
with all or any of the requirements for obtaining a Licence to conduct any of
the Regulated Activities. |
|
Project Company: |
A company established in accordance with the provisions of this Law to
conduct any of the Regulated Activities in the Emirate. |
|
Conditions: |
The technical, financial, and regulatory requirements specified by the
Bureau in a Licence; and the grounds and cases based on which an Exemption is
issued to a Licensee by the Bureau; as the case may be. |
|
Principal Assets: |
Movable and immovable assets allocated by a Licensee to conducting
Regulated Activities. These include, everything provided to enable the
operation of power plants and/ or desalination plants owned by, or allocated
by the RTA to, the Licensee, together with any real rights related to the
land on which such assets exist. |
|
Transmission System: |
The system of DEWA which is entirely or mainly comprised of: 1. water pipelines, and water storage and
transportation facilities and installations, that are used for transporting
water from one or more desalination plant(s) to a pumping station or storage
facilities; or for transporting water between pumping stations; and 2. high voltage cables and power facilities and installations
owned or operated by DEWA and used for transmission of power from a power
plant to a power sub-station or to another power plant. |
Scope of Application
Article (3)
The provisions this
Law will apply to all Regulated Activities and to all public and private
entities conducting such activities in the Emirate, including in free zones and
Special Development Zones.
Duties of the Bureau
Article (4)
For the purposes of
this Law, the Bureau will have the duties and powers to:
1.
develop,
in coordination with the concerned Government Entities, the standards and rules
for conducting the Regulated Activities, including those related to the
technical, health, environmental, and safety aspects; regularly review and
update such standards and rules; and submit the same to the SCE for approval;
2.
receive
and consider applications for Licences and Exemptions related to conducting the
Regulated Activities; and determine such applications upon obtaining the
approval of the SCE;
3.
verify,
as per the relevant regulations and procedures prescribed by the SCE,
compliance by the Licensees with this Law, the terms of the issued License or
Exemption, and the adopted rules and requirements for conducting the Regulated
Activities;
4.
develop
the rules and standards related to the operation of the transmission and
connection system between the power generation facilities and/ or desalination
facilities of the Licensee, to the Regulated Activities, and to the Transmission
System;
5.
prepare
the required studies and research on conducting the Regulated Activities in the
Emirate by the Licensees; and make the necessary proposals for developing their
activities;
6.
take
the necessary actions and measures stipulated in this Law against violating
Licensees and against any other entity that violates the provisions hereof;
7.
keep
and regulate records containing all the data and information of Licensees;
8.
seek
assistance from experts and specialists who have the qualifications and
experience required to enable the Bureau to perform its duties under this Law;
9.
represent
the Emirate in regional and international conferences, forums, meetings, and
organisations in all matters related to Regulated Activities;
10.
give
opinions and advice on all cases and issues presented to it by the SCE and
other concerned Government Entities;
11.
form
the necessary committees and work teams and determine their duties and powers;
and delegate any of the powers vested in the Bureau under this Law to such
committees and work teams; and
12.
perform
any other duties assigned to it by the SCE.
Conducting Regulated
Activities
Article (5)
a.
No public or
private entity may conduct the Regulated Activities in the Emirate without
first obtaining a Licence from the Bureau. The Licence will be granted in accordance
with the provisions of this Law and the resolutions issued in pursuance hereof.
b.
Notwithstanding
the provisions of paragraph (a) of this Article, DEWA will be exempt from
obtaining the Licence referred to herein as it is the entity having the exclusive
authority, under the above-mentioned Decree No. (1) of 1992, to implement electricity and water production projects in the Emirate.
Restricted Regulated
Activities
Article (6)
The SCE, upon the
recommendation of DEWA, may determine the Regulated Activities that may be
conducted, and the facilities that may be managed or constructed, by a Licensee
for the purpose of supplying the Transmission System with electricity and/or
water.
Establishment of Project
Companies
Article (7)
For the purpose of achieving
its objectives under the above-mentioned Decree No. (1) of 1992, DEWA may
establish various types of Project Companies, either solely or in partnership
with any other persons, including non-UAE national individuals, companies, and
corporations.
Criteria for Selecting
Partners
Article (8)
Notwithstanding the
provisions of the above-mentioned Law No. (6) of 1997, partners in Project
Companies established for the purpose of conducting the Regulated Activities
will be selected in accordance with the relevant rules adopted by the SCE upon
the recommendation of DEWA.
Allocation of Real Rights
Article (9)
For the
compensation it determines, DEWA will have the authority to grant a Project
Company the usufruct right or any other real right in any part of the land
plots demarcated on the map attached hereto or in any other land owned by DEWA
for a period not exceeding ninety-nine (99) years.
Granting Licences and Exemptions
Article (10)
The Bureau is the
sole entity in the Emirate assigned with the duty to issue Licences and
Exemptions under this Law. Such Licences and Exemptions, as the case may be,
will be issued subject to the technical, financial, and regulatory conditions
and requirements prescribed by the SCE in this respect. For this purpose, the
Bureau will:
1.
evaluate Licence
applications in accordance with the criteria stipulated in Article (12) of this
Law and with the requirements adopted by the SCE in this respect; and
2.
coordinate
with the concerned entities in the Emirate to issue
Licences and Exemptions.
Applications for Licences
Article (11)
A Licence
application will be submitted on the form prescribed by the Bureau for this
purpose, accompanied by the required supporting data and information, and by proof
of payment of the relevant prescribed fees.
Criteria for Issuing Licences
Article (12)
The SCE will, upon
the recommendation of the Bureau, approve the technical, financial, and
administrative criteria for evaluating an application for Licence submitted by
an applicant entity to conduct a Regulated Activity. This includes the criteria
related to any party that the applicant intends to subcontract to fully or
partially conduct the Regulated Activity.
Exemption
Article (13)
The Bureau may,
within the scope of its duties and functions under this Law, exempt a Licensee,
upon its request, from compliance with certain terms of its Licence. The Bureau
may also amend, extend, or revoke such an Exemption at any time. In any event,
the Bureau must inform the exempted entity in writing of the nature, extent,
and terms of such an Exemption or of any amendment or revocation thereof.
Procedures for Exemption
Article (14)
a.
The Bureau may exempt a Licensee, upon its request, from compliance
with all or any of the terms of its Licence, in accordance with the relevant
rules adopted by the SCE.
b.
An Exemption granted pursuant to this Article will be in the form
of a document issued by the Bureau stating the terms and conditions that ensure that the
exempted Licensee will conduct the Regulated Activities for which the Licence
is issued.
Where
a Licensee fails to comply with the terms of the Exemption, the Bureau may,
based on the exigencies of public interest and subject to a written notice,
fully or partially revoke such an Exemption.
In issuing an Exemption,
the Bureau must:
1.
request
the Licensee to provide the data and information required for supporting the
Exemption application; and
2.
coordinate
with the concerned Government Entities.
Term of Licences and Exemptions
Article (15)
A Licence or an
Exemption will be valid throughout the period specified therein, unless such a
Licence or an Exemption is revoked in the cases, or pursuant to the rules,
stipulated in this Law or in the Licence.
Announcement of Licences and Exemptions
Article (16)
The Bureau must
announce the Licences and Exemptions issued pursuant to this Law and any
amendments to such Licences or Exemptions to the extent possible and by all the
means available, including means of publication and direct notification.
However, the Bureau may not announce the details of any Exemption it issues if
it believes that disclosing such details does not serve the public interest.
Subcontracting
Article (17)
a.
A Licensee is
prohibited from subcontracting any entity to perform any work related in whole
or in part to the Regulated Activities, unless this is disclosed upon applying
for the Licence. Such a disclosure must include the details of that entity, the
Regulated Activity it will conduct, and any other information requested by the
Bureau.
b.
Notwithstanding
the provisions of paragraph (a) of this Article, where a Licensee wishes, after
obtaining the Licence, to subcontract any entity, or replace any subcontracted
entity, the Licensee must obtain the prior approval of the Bureau, whereupon the Licensee must amend its Licence to reflect
the subcontracting or replacement.
Amending Terms of Licences or
Exemptions
Article (18)
The Bureau may, for
reasons relating to public interest, amend the terms of a Licence or Exemption
issued to a Licensee. In this case, the Bureau must notify the Licensee of such
an amendment and of the details and reasons for the amendment. Upon receiving
the proposed amendment, the Licensee must inform the Bureau in writing of its
approval of the proposed amendment or object to the same as per the procedures
and within the time frame prescribed in Article (19) of this Law. Where a
Licensee fails to inform the Bureau of its approval or objection within thirty
(30) days from the date of being notified of the amendment, the amendment will
become binding on the Licensee.
Objection to Licence Terms
Amendment
Article (19)
a.
A licensee may
submit a written appeal to the Bureau against the amendment of the terms of the
Licence within thirty (30) days from the date of being notified of the same.
The appeal must be accompanied by the relevant supporting documents.
b.
The
Bureau must consider the appeal referred to in paragraph (a) of this Article
within (30) days from the date of its submission, and must issue its decision
to uphold or cancel the amendment.
Where the Bureau dismisses a
request made by the Licensee under the appeal for cancellation of an amendment,
the Licensee may submit a grievance in respect of the dismissal to the SCE
within twenty (20) days from the date of the dismissal. The grievance will be
determined by a committee formed by the SCE for this purpose.
Criteria for Conducting Regulated
Activities
Article (20)
Upon the
recommendation of the Bureau and in coordination with the concerned Government
Entities in the Emirate, the SCE will issue the environmental, health,
technical criteria, and safety criteria for conducting the Regulated Activities
in order to ensure the conduct by the Licensee of such Regulated Activities is in
line with best international practices adopted in this respect.
Assignment of Licences
Article (21)
a.
A Licensee is
prohibited from assigning its Licence to any other party without first
obtaining the relevant written approval of the Bureau.
b.
The
approval referred to in paragraph (a) of this Article must be issued in
accordance with the relevant terms and conditions prescribed by the Bureau.
Assignment of Assets
Article (22)
a.
Under the pain of nullity, a Licensee may not dispose of any of
its Principal Assets, in any manner whatsoever, without first obtaining
the written approval of the Bureau. In particular, these dispositions include:
1.
selling
or transferring the ownership of such assets or leasing them out to third
parties with or without consideration;
2.
granting
or consenting to granting security rights in, or mortgaging, such assets;
3.
forfeiting,
or causing the forfeiture of, any real rights attached to such assets; and
4.
creating,
or consenting to creating, any real right in such assets.
b.
Notwithstanding the provisions of paragraph (a) of this Article,
the Bureau may, subject to requirements it prescribes, approve creating any
security rights in, or mortgaging, any Principal Assets of the Licensee to the
extent required for facilitating financing of electricity and water production
operations.
Sale of Electricity and Water
Article (23)
A Licensee is
hereby prohibited from selling the electricity or water it produces, or from supplying
or providing it to any entity within or outside of the Emirate, except for
DEWA.
Governing Law
Article (24)
a.
The contracts
concluded by Licensees with third parties for conducting Regulated Activities,
including seats and rules for settlement of disputes, will be subject to the
rules and provisions stipulated in such contracts. The legislation in force in
the Emirate will apply to all matters on which such contracts are silent.
b.
All
matters related to performance of the contracts concluded by Licensees with
DEWA and other local Government Entities will be subject to the legislation in
force in the Emirate. This includes seats and rules for settlement of disputes
arising in connection with such contracts.
Notices
Article (25)
The Bureau must, to
the extent practicable, inform Licensees and the concerned Government Entities
in the Emirate, and provide them with copies, of the resolutions relating to
them and of the grounds for issuing such resolutions in order to enable them to
plan, manage, and finance their various activities in the short and the long
term.
Notices of Non-Compliance
Article (26)
a.
If it is established to the Bureau that a Licensee has violated any of the
terms of its Licence or Exemption, the Bureau must notify the Licensee of such
a violation taking into consideration the following:
1.
The
notice must state the nature of violation.
2.
The
notice must determine the deadline for remedying the violation.
3.
The
notice must determine the actions and penalties that the Bureau will take in
case of failure to remedy the violation within the set deadline.
4.
The
violating Licensee must keep the Bureau informed of the measures to remedy the
violation and provide it with any other information the Bureau deems necessary.
b.
The Licensee must comply with the requirements stipulated in the
notice it receives from the Bureau, failing which a fine of no less
than one thousand Dirhams (AED 1,000.00) and no more than three million Dirhams
(AED 3,000,000.00) will be imposed on it.
c.
In addition to the penalty of a fine, the Bureau may, subject to the
approval of the SCE, take any of the following measures against a violating
entity:
1.
suspension
of the Licence for a period not exceeding three (3) months; or
2.
revocation
of the Licence or Exemption of the Licensee.
The penalties and
measures stipulated in this Article will not preclude from claiming any damages
from the violating entity for the harm resulting from the committed
violation.
Objection to Notices or
Penalties
Article (27)
a.
A Licensee may
file a written appeal against the notice of non-compliance served on, or the
penalty imposed against, it within thirty (30) days from the date of receiving
the notice or being notified of the penalty. The appeal must be accompanied by
the supporting documents.
b.
The
Bureau must consider the appeal referred to in paragraph (a) of this Article
within (30) days from the date on which the appeal is filed.
Where the Bureau
dismisses a request made by the Licensee under the appeal for withdrawal of the
notice or cancel the penalty, the Licensee may submit a grievance to the SCE
within twenty (20) days from the date of dismissal. The grievance will be
determined by a committee formed by the SCE for this purpose.
Announcement of Non-Compliance
Notices
Article (28)
The Bureau must:
1.
announce
the non-compliance notice and any amendment thereto or cancellation thereof in
the manner it deems appropriate;
2.
provide
a copy of the non-compliance notice or any amendment thereto or cancellation
thereof to any entity that the Bureau believes is affected by the violation
committed by the concerned Licensee.
Implementation of
Non-Compliance Notices
Article (29)
A non-compliance
notice issued by the Bureau will be deemed a writ of execution. Where the
Licensee fails to comply with the provisions of the non-compliance notice, it
will be enforced by the Execution Department of the Dubai Courts.
Audit and Inspection
Article (30)
The Bureau will
have the power to conduct audit and inspection of Licensees. For this purpose,
the Bureau will have the authority to:
1.
request
concerned Licensee to provide it with any documents the Licensee controls or
holds in its possession, together with any information the Bureau deems
necessary to have access to, within the time frame it prescribes for this
purpose;
2.
send
any of its employees or its authorised representatives to access the premises
and other offices of the Licensee to review its records, documents, procedures,
systems, equipment, facilities, and sites.
Penalties
Article (31)
Without prejudice
to any stricter penalty stipulated in any other law, a person who commits any
of the following violations will be punished by imprisonment for not more than
one (1) year and/ or a fine of no more than three million Dirhams (AED
3,000,000.00):
1.
Conducting
any of the Regulated Activities without a Licence issued by the Bureau;
2.
providing
false or misleading statements or information to obtain the Licence or
Exemption;
3.
refraining, without a valid reason, from
providing the documents or information requested by the Bureau within the
prescribed time frame;
4.
deliberately altering, destroying, or
concealing any document or information requested pursuant to this Law; or
5.
performing by himself or in partnership with
others any act that may restrict, impact, or prevent competition in any of the
Regulated Activities; or any other act that may harm the interests of
electricity and water consumers or may harm in any way whatsoever .
Law Enforcement
Article (32)
Employees of Bureau
nominated pursuant to a resolution issued by the chairman of the SCE will have
the capacity of law enforcement to record the acts committed in breach of the
provisions of this Law and the bylaws issued in pursuance thereof. For this
purpose, they may access the premises of the Licensee, audit its operations,
and issue the relevant violation reports.
Fees
Article (33)
a.
In return for
issuing Licences and providing services under this Law, the Bureau will charge
the fees prescribed by a resolution of the Chairman of the Executive Council,
upon the recommendation of the Department of Finance.
b.
The
fees and fines collected pursuant to this Law and the resolutions issued in
pursuance hereof will be paid to the Public Treasury of the Government of
Dubai.
Compliance
Article (34)
All entities
conducting any of the Regulated Activities by the effective date of this Law
must comply with the provisions of this Law within no later than six (6) months
from the date on which this Law comes into force.
Issuing Resolutions and Bylaws
Article (35)
The SCE will issue
the resolutions and bylaws required for the implementation of the provisions of
this Law.
Repeals
Article (36)
Any provision in
any other legislation will be repealed to the extent that it contradicts the
provisions of this Law.
Publication and Commencement
Article (37)
This Law will be published in the
Official Gazette and will come into force on the day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 4 April 2011
Corresponding to 1 Jumada
al-Ula 1432 A.H.
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