Dubai: New District Cooling Regulations Will Cut Back Off Overbilling

With a global target of zero net emission by 2050, the district cooling sector is quickly advancing in UAE, GCC, and the rest of the Middle East along with North Africa. These regions have also been thinking about ways of offering district cooling cost savings to consumers. In accordance with this target, a two-day MENA district cooling projects conference was organized in Dubai on June 14, 2022.

The conference welcomed more than 250 delegates which included key stakeholders, industry experts, senior government officials, utility suppliers, project owners, and developers. Project opportunities worth $15 billion(Dh 55 billion) were discussed during the conference.

Speakers at the conference revealed that governments in the Middle East like Saudi Arabia and Abu Dhabi are working on regulations to ensure that the air-conditioning industry has a structured growth.

James Grinnell, head of RSB(Regulatory and Supervisory Bureau)* spoke at the conference and elaborated on the plans of the bureau to bring in new regulations in the district cooling sector. These regulations have been created to make district cooling companies accountable, customer-centric(affordable district cooling rates) and more transparent.

The district cooling service providers have been provided with a grace period till September 30, 2022, the new regulations will come into effect after that. Grinnell added that all the district cooling companies would be monitored to ensure compliance with the newly formed regulations.

At present 22 district cooling companies are functioning with permits issued by RSB. The new regulations include the following obligations for district cooling companies:

• Last year's reduction in fuel surcharge should be returned to the customers by the companies.

• The companies have to ensure that the occurrence of excess contract capacity estimates is reduced and the deposits are promptly returned.

• Faulty meters should be quickly replaced.

• Prolonged estimated billing is prohibited.

• Companies are allowed to take only one deposit-either from the landlord or the tenant.

• Create and publish a customer charter and measure the performance.

• The companies need to monitor and report health and safety.

These regulations have been implemented to offer low-cost cooling solutions to the maximum number of people. The RSB will also impose penalties for those companies that have poor energy performance.

*The Dubai Government established the RSB in 2010 to regulate the power and water sector in Dubai. Since last year it has also been regulating the district cooling sector as per Executive Council Resolution No. 6 of 2021.