Hamdan bin Mohammed issues Resolution regulating district cooling services in Dubai

Dubai: Dubai Crown Prince and Chairman of The Executive Council of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued Executive Council Resolution No. (6) of 2021 regulating district cooling services in the emirate of Dubai.

The Resolution establishes a legal framework for regulating district cooling services including power generation for cooling plants, distribution and delivery of services and billing systems.

The Resolution supports the implementation of the Dubai Integrated Energy Strategy by facilitating an increase in the share of renewable electricity and the reduction of Dubai’s total energy consumption. Furthermore, the Resolution supports sustainable development and the development of a green economy, apart from enhancing the operational performance of district cooling systems.

Regulation and supervision

The Resolution is applicable to providers of district cooling and billing services, including service providers in private development zones, free zones and Dubai International Financial Centre.

According to the Resolution, the Regulatory and Supervisory Bureau for Electricity and Water of Dubai (RSB) is responsible for regulating the district cooling service sector and billing services.

RSB will define the standards and requirements for licensing, set the technical specifications for district cooling systems, regulate the relationship between service providers and the customer, and seek to amicably settle disputes between service providers and the customer. After coordination with concerned government departments, RSB will prepare and approve the contracts and forms needed to implement the provisions of this Resolution.

Licencing service providers

Pursuant to this Resolution, only service providers duly licenced by RSB and other concerned departments are permitted to provide district cooling and billing services in Dubai.

District cooling service providers and billing service providers are required to obtain necessary approvals before installing cooling units and connecting them to district cooling systems. Service providers and billing agents must meet all requirements and provide the equipment necessary to install cooling units, use approved energy-efficient systems and satisfy all safety conditions.

The Resolution also obligates concerned government departments and real-estate developers to provide adequate spaces and pathways for installing district cooling networks.

The Resolution outlines the terms for measuring the consumption and issuing the bills based on the tariff system of the cooling capacity, or any other system approved by RSB.

Penalties and fines

The Resolution also specifies the penalties and fines imposed on violators and the functions of RSB in this regard. The Chairman of the Dubai Supreme Council of Energy, or whoever he delegates, will receive and review all grievances related to penalties and fines, provided they are submitted in writing within 30 days of the date of receiving the notification of the administrative decision or penalty imposed on him. The Chairman of the Dubai Supreme Council of Energy will issue his decision within 60 days of the date of receiving the grievance.

All providers of district cooling and billing services must comply with the provisions of this Resolution within a year of the date of its activation. The Chairman of the Dubai Supreme Council of Energy is authorised to extend the grace period for compliance for another year if required.

The Chairman of the Dubai Supreme Council of Energy will issue all the decisions required to implement the provisions of this Resolution.

This Resolution annuls any other legislation that contradicts or challenges its articles. The Resolution will be published in the Official Gazette and will be valid from the date pf publication.