UAE Law and Practice Contributed by: Brendan Hundt, Dan Feldman, Sam Anastasiou and Saiesh Kamath, King & Spalding LLP
5.6 Electricity Distribution System Charges and Terms of Service Distribution Charges and Terms of Service The UAE does not have a single national tariff-setting regime for electricity distribution. Charges and terms are set under emirate-level or federal utility frame- works, reflecting the monopoly or exclusive public- utility model in each service area. Abu Dhabi charges are split between intra-sector charges and customer tariffs. Intra-sector charges include the bulk supply tariff, under which EWEC sells bulk power and water to TAQA. The TUoS charge allows TAQA to recover its maximum allowed revenue and signal efficient use of the transmission system. End-user tariffs are decided by the government, while the Department of Energy advises on tariff and subsi- dy levels and tariff structures that encourage efficient consumption. Abu Dhabi customer service terms are regulated through licences, Department of Energy regulations and consumer-protection instruments. The Depart- ment of Energy monitors TAQA Distribution’s compli- ance with customer-service obligations under Law No 2 of 1998, Law No 11 of 2018, operating licences and Department of Energy regulations. The Department of Energy Consumer Protection Policy regulates supply agreements, service fees, monthly billing, disconnec- tion, complaints, debt management and protections for vulnerable customers. DEWA applies published slab tariffs and a fuel sur- charge pursuant to Dubai Supreme Council of Energy decisions. The slab tariff increases progressively with monthly consumption, and the fuel surcharge varies according to changes in fuel prices supplied to DEWA generation plants. DEWA’s July 2026 electricity fuel surcharge is 6 fils/kWh (AED0.060 per kWh), and val- ue-added tax at 5% applies to tariffs. In Sharjah, SEWA publishes electricity tariffs through its energy calculator. The tariff is consumption-based, with slabs of 0–2,000 kWh at 23 fils/kWh (AED0.23 per kWh), 2,001–4,000 kWh at 28 fils/kWh (AED0.28 per kWh), 4,001–6,000 kWh at 32 fils/kWh (AED0.32 per kWh) and above 6,000 kWh at 38 fils/kWh (AED0.38
ry streetworks powers, or negotiated access arrange- ments. Streetworks powers are not the same as a general right to expropriate land. They are access and works powers, subject to conditions such as prior steps before entry, safety obligations, reinstatement of land and buildings, repair of damage, record-keeping and minimising interference with other infrastructure. Compensation depends on the right taken. For full acquisition, compensation is generally based on fair compensation, and in Dubai the amount is determined by reference to the market value of the property on the date of acquisition. For temporary access, trenching, cable laying or main- tenance, compensation is usually limited to reinstate- ment, repair of damage and any amounts required under the relevant NOC, access agreement, wayleave, easement or statutory regime. Formal expropriation is therefore usually a last resort. Most distribution projects proceed through planned corridors, government land, road reserves, municipal approvals and utility NOCs rather than compulsory acquisition of private land. 5.5 Monopoly Rights for Electricity Distribution Entities Electricity distribution in the UAE is organised on a territorial monopoly model, with the relevant state- owned utility providing distribution services within its emirate or federal service area. The UAE does not generally permit competing distribution companies to build parallel public distribution networks and offer retail distribution service in the same territory. Distri- bution exclusivity is not obtained through competitive concessions in the ordinary sense. It is conferred by federal or emirate legislation, government restructur- ing decisions, utility establishment instruments and regulator-issued licences or price-control determina- tions.
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