Executive Council Resolution No. (6) of 2021
Regulating the
Provision of District Cooling Services in the
Emirate of Dubai[1]
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We, Hamdan bin Mohammed bin Rashid Al Maktoum,
Crown Prince of Dubai, Chairman of the Executive Council,
After
perusal of:
Law No. (3) of 2003 Establishing the Executive
Council of the Emirate of Dubai;
Law No. (10) of 2003 Establishing the Emirates
Central Cooling Systems Corporation and its amendments;
Law No. (9) of 2004 Concerning the Dubai
International Financial Centre and its amendments;
Law No. (14) of 2009 Concerning the Pricing of
Government Services in the Emirate of Dubai and its amendments;
Law No. (19) of 2009 Establishing the Supreme
Council of Energy;
Law No. (12) of 2010 Concerning Protection of the
Service Network of the Emirates Central Cooling Systems Corporation;
Law No. (6) of 2011 Regulating Participation of
the Private Sector in Electricity and Water Production in the Emirate of Dubai;
Law No. (1) of 2016 Concerning the Financial
Regulations of the Government of Dubai;
Law No. (8) of 2016 Regulating the Grant of Law
Enforcement Capacity in the Government of Dubai and its Implementing Bylaw;
Law No. (6) of 2019 Concerning Ownership of
Jointly Owned Real Property in the Emirate of Dubai;
Decree No. (22) of 2009 Concerning Special Development
Zones in the Emirate of Dubai;
Executive Council Resolution No. (27) of 2008
Concerning the Use of Thermal Storage and Saline Water in District Cooling Systems
in the Emirate of Dubai;
Executive Council Resolution No. (2) of 2010
Establishing the Regulatory and Supervisory Bureau for the Electricity and
Water Sector in the Emirate of Dubai;
Regulation No. (4) of 2009 Regulating Work in the
Right of Way in the Emirate of Dubai and its Implementing Bylaw; and
The legislation establishing and regulating free
zones in the Emirate of Dubai,
Do hereby issue this Resolution.
The following words and expressions, wherever
mentioned in this Resolution, 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. |
|
Chairman:
|
The
chairman of the SCE. |
|
RSB: |
The
Regulatory and Supervisory Bureau for the Electricity and Water Sector in the
Emirate of Dubai established pursuant to the above-mentioned Executive
Council Resolution No. (2) of 2010. |
|
Government
Entity: |
Any of
the Government departments, public agencies or corporations, Government
councils and authorities in the Emirate, or similar entities. |
|
District
Cooling System: |
The
system determined by the RSB which comprises fixed and moveable assets, a
District Cooling Plant, and a District Cooling Network. |
|
District
Cooling Plant: |
This
includes pumping stations, chillers, thermal storage facilities, cooling
towers, electrical substations, emergency power supply equipment, system
control units, switchgear, ancillary electrical installations, pipes and
connections, and other ancillary equipment used for the production and
distribution of chilled water. |
|
District
Cooling Network: |
The
distribution pipelines comprising supply and return lines, and their
appurtenances which are used to transport chilled water from a District
Cooling Plant to one or more District Cooling Plants and to one or more
Buildings. |
|
District
Cooling Service: |
The
activity related to generating, distributing, selling, or billing Cooling Energy. |
|
Billing
Service: |
The
activity of installing meters and billing and collecting the District Cooling
Service charges based on the quantities supplied to a Customer. Billing
Services may be provided directly by a Service Provider or by a Billing
Agent. |
|
Cooling
Energy: |
The
energy generated from chilled water through a District Cooling System. |
|
Service
Provider: |
A
private company or establishment authorised by the RSB to provide District
Cooling Services to Customers. |
|
Billing
Agent: |
A
private company or establishment authorised by the RSB to provide Billing
Services to Customers on behalf of a Service Provider. |
|
Permit
Holder: |
A
Service Provider or a Billing Agent. |
|
Customer: |
The
beneficiary of a District Cooling Service with whom the relevant service
contract is concluded. |
|
Permit: |
A
document issued by the RSB authorising a Permit Holder to conduct his
activities in accordance with the provisions of this Resolution, and the
standards and requirements stipulated in this document and in the Addendum. |
|
Addendum: |
The
document attached to a Permit in which the RSB prescribes the technical
specifications and requirements that must be met in respect of the District
Cooling System, including its Cooling Capacity, the location where the system
will be implemented, and the area within which the District Cooling Service
will be provided. |
|
Terms
of the Permit: |
The
technical, regulatory, and performance requirements stipulated in a Permit or
an Addendum. |
|
Cooling
Capacity: |
The
production capacity of the District Cooling System measured in refrigeration
tonnes that a Service Provider is authorised to provide in accordance with
his Permit. |
|
Exemption
Certificate: |
A
document issued by the RSB exempting a Permit Holder from compliance with one
or more of the Terms of the Permit. |
|
Building: |
Any Real
Property Unit that is provided with a District Cooling Service. |
|
Person: |
A
natural person or a public or private legal person. |
a. This Resolution will apply to all Persons who
provide District Cooling Services or Billing Services in the Emirate, including
in Special Development Zones and free zones, such as the Dubai International
Financial Centre.
b. Notwithstanding the provisions of paragraph (a) of
this Article, the provisions of this Resolution related to obtaining Permits
and imposing penalties will not apply to the Government Entities that conduct
activities related to providing District Cooling Services or Billing Services
in accordance with the legislation in force in the Emirate. Likewise, these
Government Entities will not be subject to any provision that conflicts with
the legislation establishing them or regulating their work.
This Resolution aims to:
1. provide a legislative framework that regulates all
aspects related to providing District Cooling Services in the Emirate, and the
relationship amongst all the parties involved in this service;
2. contribute to implementing the Dubai Integrated
Energy Strategy by promoting the implementation of various energy efficient
practices in the fields of air conditioning and cooling;
3. contribute to protecting the environment and
developing natural resources by reducing greenhouse gas emissions;
4. encourage the development of the green economy with
a view to achieving sustainable development in the Emirate; and
5. enhance the operational performance of District
Cooling Systems.
a. In addition to its functions under the above-mentioned
Executive Council Resolution No. (2) of 2010, the RSB is the competent entity
in charge of regulating the provision of District Cooling Services and Billing
Services in the Emirate. For this purpose, the RSB will have the duties and
powers to:
1. establish the criteria for determining the
entities required to obtain Permits, and submit the same to the SCE for
approval;
2. establish the requirements for obtaining Permits
and the criteria for determining their validity period; establish the
requirements for issuing Addenda; and submit the same to the SCE for approval;
3. consider and determine the applications submitted
to obtain or amend Permits, in accordance with the relevant approved standards;
4. develop the standards and rules that must be followed
by Permit Holders to conduct their activities, and submit the same to the SCE
for approval;
5. develop the rules governing the measures that may
be taken by a Permit Holder against any Customer who fails to pay his bills,
and submit the same to the SCE for approval;
6. monitor and supervise the Persons who provide
District Cooling Services or Billing Services; verify their compliance with
this Resolution and the resolutions issued in pursuance hereof; and take the
necessary action against violators;
7. collect from Permit Holders any data or
information the RSB deems appropriate to support its regulatory and supervisory
activities;
8. consider any dispute that may arise between
Customers and Permit Holders or amongst Permit Holders in respect of providing
District Cooling Services or Billing Services; and attempt to settle such
disputes amicably through a committee formed by the SCE pursuant to a
resolution it issues in this respect, wherein it determines the terms of
reference and applicable procedures of the committee;
9. prepare the procedures regulating the provision of
District Cooling Services and Billing Services in coordination with the
concerned Government Entities, and submit the same to the SCE for approval;
10. approve the forms required for implementing the
provisions of this Resolution, including the standard District Cooling Service
contract to be concluded between a Permit Holder and a Customer; and
11. exercise any other duties or powers assigned to it
by the SCE and required for the achievement of the objectives of this
Resolution.
b. The functions of the RSB under paragraph (a) of
this Article will not prejudice the functions of Government Entities under the
legislation in force.
a. No Person may provide District Cooling Services or
Billing Services in the Emirate, whether with or without consideration, unless
he is licensed by the competent licensing authorities to operate in the Emirate
and holds a Permit.
b. A Permit will be issued in accordance with the
provisions of this Resolution and the resolutions issued in pursuance hereof,
and subject to the legislation in force in the Emirate.
a. An application to obtain a Permit or Addendum will
be submitted to the RSB on the form prepared for this purpose. The application
must be supported by the information and documents required by the RSB.
b. The RSB will consider the Permit or Addendum
application and determine it within sixty (60) days from the date of its
submission, unless the RSB decides to extend this period for valid reasons and
notifies the applicant of the extension.
c. The RSB will determine the validity period of the
Permit in accordance with the relevant criteria and rules adopted by the SCE.
a. The RSB may, for reasons relating to public
interest, amend any of the Terms of the Permit or those of the Addendum,
provided that the RSB notifies the Permit Holder of the nature of, and reasons for,
the amendment.
b. A Permit Holder must inform the RSB in writing of
its acceptance of or objection to the proposed amendment within thirty (30)
days from the date of being notified of the amendment. Where the Permit Holder
fails to inform the RSB of his objection to the amendment within the prescribed
time frame, the amendment will become binding on the Permit Holder.
a. The RSB may, in coordination with the concerned
Government Entity, exempt a Permit Holder from compliance with certain technical
requirements or rules stipulated in the Permit or Addendum for a period to be
determined by the RSB.
b. The RSB may extend or otherwise modify the
exemption period determined in accordance with the provisions of paragraph (a)
of this Article, or revoke the exemption, pursuant to an Exemption Certificate
which states the type, term, and conditions of the exemption, in addition to
the reasons for amendment or cancellation of the exemption where applicable.
A Permit Holder must:
1. obtain approval from the Government Entity in
charge of licensing buildings and classification of land use before installing
a District Cooling Plant and connecting it to a District Cooling System;
2. obtain an environmental clearance from the concerned
Government Entity before operating a District Cooling Plant;
3. obtain approvals from the concerned Government
Entities for the design and implementation of the infrastructure required for the
establishment of a District Cooling Network; and comply with the relevant
procedures, conditions, and requirements adopted by these entities;
4. meet all the requirements and provide all the
equipment required for installing a District Cooling Plant, including Cooling Energy consumption meters, and connecting it to a
District Cooling System; and use power efficient systems and technologies, in
accordance with the standards approved in this respect, and particularly
security and safety requirements;
5. comply with the Terms of the Permit, the standards
and technical requirements stated in the Addendum, and any other requirements
prescribed by the RSB;
6. determine the complaints submitted to it by
Customers concerning any dispute that may arise between the Permit Holder and the
Customers or between the Customers and the Billing Agent, in accordance with
the procedures and processes developed by the Permit Holder and approved by the
RSB;
7. conclude District Cooling Service contracts with
Customers on the forms adopted by the RSB; and
8. meet any other obligations determined pursuant to
a resolution of the Chairman or required by the legislation in force in the
Emirate.
a. The concerned Government Entities and Developers
must provide the required service corridors within the areas they supervise to
lay down District Cooling Networks and allow Service Providers to provide
District Cooling Services. These service corridors must be implemented in line
with the routes, plans, specifications, conditions, procedures, time frames,
planning requirements, and land use prescribed by the concerned Government
Entities and adopted by Developers.
b. These service corridors provided for laying down
District Cooling Networks in accordance with the provisions of paragraph (a) of
this Article will be shared by all Service Providers. The concerned Government
Entities will not be responsible for providing any Service Provider with any
additional service corridors.
c. A Service Provider may not object to any request submitted
by another Service Provider to lay down District Cooling Networks within the
Right of Way, unless it is established to the RSB and the competent entities that
the objecting Service Provider has infrastructure existing within the Right of
Way, which renders the other Service Provider’s request technically unfeasible.
d. The Service Provider will bear all costs related
to laying down District Cooling Networks and must meet the relevant obligations
imposed on him by the concerned Government Entities and the Developers.
a. The tariff for District Cooling Services provided
to Customers will be calculated on the basis of Cooling Capacity, Cooling Energy, or any other basis approved by the RSB.
b. The bills must include the following details:
1.
the contracted Cooling Capacity;
2.
the contracted Cooling Capacity unit rate in UAE
dirhams;
3.
volume of consumption;
4.
consumption unit rate in UAE dirhams;
5.
Billing Service charges in UAE dirhams; and
6.
any other details determined pursuant to the
relevant resolution of the RSB.
a. The SCE will approve all charges and tariffs
proposed by Permit Holders for the services they provide, and any subsequent
changes thereto. These include without limitation the following:
1.
District Cooling Service connection charges;
2.
disconnection and reconnection charges of District
Cooling Services;
3.
Cooling Capacity charges;
4.
District Cooling Service consumption tariffs;
5.
meter maintenance tariffs;
6.
surcharge on low chilled water temperature
difference (low Delta T);
7.
surcharge on excess cooling load; and
8.
Billing Service charges.
b. No Permit Holder may collect from a Customer any
charges or tariffs for the services it provides unless such charges or tariffs
are approved by the SCE.
No District Cooling System asset may be disposed
of without first obtaining the written approval of the RSB. This will not apply
to the following dispositions:
1. internal sale or transfer of ownership of assets
by a Permit Holder;
2. mortgage of assets for the purpose of obtaining
finance for a District Cooling System;
3. creation of step-in rights in respect of a
contract for the provision of District Cooling Services to ensure continuity of
service in the event of termination of such a contract; and
4. replenishment or replacement in whole or in part
of assets, provided that the Service Provider’s ability to meet service quality
and standards is not compromised.
Where a Permit Holder commits any of the
violations stipulated in the Schedule attached to this Resolution, the RSB must
serve the violator with a violation notice which must:
1. state the details and type of the violation; and
2. determine the time frame for remedying the
violation and the measures that will be taken in case of failure to remedy the
violation within the prescribed time frame.
a. Without prejudice to any stricter penalty
stipulated in any other legislation, a Person who commits any of the violations
stated in the Schedule attached to this Resolution, and fails to comply with
the notification of violation served on him pursuant to Article (14) hereof,
will be punished by the fine indicated opposite that violation.
b. Upon repetition of the same violation within one
(1) year from the date of the previous violation, the amount of the fine prescribed
in the Schedule referred to in paragraph (a) of this Article will be doubled. A
fine must not exceed two hundred thousand dirhams (AED 200,000.00).
c. In addition to the penalty of a fine prescribed in
paragraph (a) of this Article, the RSB may, without prejudice to the interests
of Customers, take either of the following measures against a violator:
1. suspension
of the Permit for a period not exceeding three (3) months; or
2. revocation
of the Permit.
d. The penalties and administrative measures
prescribed in this Article will not prejudice the right of the party affected
by the violation to claim compensation from the violator for the damage
sustained on account of the violation.
The RSB employees nominated pursuant to a
resolution of the Chairman or his authorised representative will have the
capacity of law enforcement officers to record the acts committed in breach of
the provisions of this Resolution and the resolutions issued in pursuance
hereof. In this capacity, they may issue the necessary violation reports, and,
where necessary, seek assistance from police personnel.
Any affected party may submit a written grievance
to the Chairman or his authorised representative against any decision,
procedure, administrative penalty, or measure taken against him in accordance
with this Resolution and the resolutions issued in pursuance hereof, within
thirty (30) days from the date of being notified of the contested decision,
procedure, administrative penalty, or measure. The grievance will be
determined, within sixty (60) days, by a committee formed by the Chairman or
his authorised representative for this purpose, and the decision issued by the
committee on the grievance will be final.
The fines collected pursuant to this Resolution
will be paid to the Public Treasury of the Government of Dubai.
a. A Person who provides a District Cooling Service
or a Billing Service by the effective date of this Resolution must comply with
the provisions hereof within a period not exceeding one (1) year from that
effective date. The Chairman may, where required, extend this grace period for
the same period.
b. A Permit Holder must amend the terms and
conditions of the contracts concluded with his Customers before the effective
date of this Resolution to comply with the standard contract form approved by
the RSB, upon expiry of these contracts or within one (1) year from the
effective date of this Resolution, whichever comes first.
The Chairman will issue the resolutions required
for the implementation of the provisions of this Resolution.
Any provision in any other resolution will be
repealed to the extent that it contradicts this Resolution.
This Resolution will be published in the Official
Gazette and will come into force on the day on which it is published.
Hamdan
bin Mohammed bin Rashid Al
Maktoum
Crown Prince of Dubai
Chairman
of the Executive Council
Issued in Dubai on 4 March 2021
Corresponding
to 20 Rajab 1442 A.H.
Schedule of
Violations
and Fines
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|
SN |
Violation |
Fine (in
dirhams) |
|
1 |
Violating
any of the Terms of the Permit or Addendum |
50,000.00 |
|
2 |
Providing
District Cooling Services without a Permit |
65,000.00 |
|
3 |
Providing
Billing Services without a Permit |
35,000.00 |
|
4 |
Disposing
of District Cooling System assets in violation of Article (13) of this
Resolution |
20,000.00 |
|
5 |
Failure
to comply with any of the exemption terms stated in the Exemption Certificate |
3,000.00 |
|
6 |
Failure
to comply with the standards or rules adopted by the RSB under this
Resolution and the resolutions issued in pursuance hereof |
3,000.00 |
©2021
The Supreme Legislation Committee in the Emirate of Dubai
[1]Every effort
has been made to produce an accurate and complete English version of this
legislation. However, for the purpose of its interpretation and application,
reference must be made to the original Arabic text. In case of conflict, the
Arabic text will prevail.