Electricity Tariff Incentive Program

Electricity Tariff Incentive Program

Objectives

Enhancing the economic impact of the industrial sector in the Emirate of Abu Dhabi
Boosting factories› productivity in the Emirate of Abu Dhabi
Improve the efficiency of energy use.

Values

Efficiency
Transparency
Long Term Clasdarity
Productivity

Overall Description

incentives

Program Criteria

Economic Impact
Existing: Productivity – Value Added New: Supply chain support
Distribution Companies› Eligibility Criteria

Process

01

Here are the steps to register in this initiative: First, visit https://added.gov.ae/

02

Log in to DED e-Service using your current username and password.

03

Choose IDP Industrial Services and then choose “Electricity Tariff Request”.

04

Enter he industrial license number that requires an electricity tariff.

05

Complete the required fields (name, email, and phone number).

06

Select the Certifying Bodies you wish to deal with. You can select one or more certifying body.

07

You will be directed to the upload window to upload the required documents as stated on the website.

08

Click “Submit Application” to submit “Request for Quotation”

09

The Certifying Bodies will review the submitted documents and prepare the quotations or they will ask for more information.

10

When the Certifying Bodies submit the quotation, you will be notified.

11

Right after this notification, log in to your account and review the submitted quotations of the chosen Certifying Bodies and select one (Awarding)

12

The selected Certifying Body will begin auditing the application based on a set of criteria, and they may contact you for further clarification.

13

The selected Certifying Body will issue the balance scorecard as per the criteria, with a summary report of deserved scores.

14

The selected Certifying Body will ask you to sign the balance scorecard.

15

If the industrial establishment achieves 50 points or more, the Industrial Development Bureau (IDB) will issue the program enrollment certificate which determines the granted category.

16

If the industrial establishment achieves less than 50 points, the IDB will send you a regret letter.

17

After meeting the required criteria, you can contact the distribution companies to apply the new tariff for the industrial facility.

Downloadable Documents

Required Documents

Audited Financial Statements/ management accounts as applicable  (Both New & Existing)
Asset Declaration Letter (Both New & Existing)
WPS Statistics Report  (Both New & Existing)
Certified Labor list issued by MOHRE (Both New & Existing)
ETIP Manpower Declaration  (Both New & Existing)
ETIP Skilled Labor declaration  (Only Existing)
Annual Production Capacity details ( recommended) (Both New & Existing)
ADDC Documents (Both New & Existing)
Any other documents as considered necessary for verification

FAQs

The Electric Tariff Incentive Program aims to promote competitiveness and investments in Abu Dhabi as a first option for industrial companies having high-level of automation, productivity and economic impact through boosting the productivity level of industrial facilities, enhancing their economic impact and improving energy efficiency.

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The Program was established by the Industrial Development Bureau to cover all Industrial sectors in Abu Dhabi except Free Zone Entities.

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All industrial activities approved within the emirates of Abu Dhabi are eligible for the program.

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The industrial entities which are more than 6 months from date of issue of the “production/operational” license from ADDED are eligible as Existing companies.

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The industrial Entities which have “under construction” license issued by ADDED and/or companies which are in operation for first 6 months from the date of issue of “production/operational” license issued by ADDED.

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Yes, the program is designed for all Entities both New and Existing with or without production status under different ETIP program parameters. Different applications are processed as applicable for New or as Existing company. One company can be eligible only under one category as “New” or “Existing” based on approved definitions of New and Existing Company.

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All documents will be managed confidentially by the designated teams within the Department of Economic Development.

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All the industrial facilities in Abu Dhabi holding valid industrial license issued by the IDB are eligible to apply for the program.

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Free zones entities are not included in the program therefore they are not eligible.

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Manufacturing Entities could potentially qualify for special tariffs based on a set of criteria reflecting their economic value and their cost-to-serve.

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The program is designed only for the existing manufacturing entities in the Emirate of Abu Dhabi. 

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You can apply online by visiting www.adbc.abudhabi.ae and following the instructions.

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The ETIP certification is done by independent third parties knowns as Certifying Bodies that are selected and empaneled under the program by DED.

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Following criteria will be used to evaluate the manufacturing entities in order to qualify for the ETIP program under various categories:

  • Economic Impact
  • Productivity
  • Connectivity Load
  • Electricity Management System

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Yes, the above parameters apply for both New and Existing Company. However, the evaluation criteria for calculation of Productivity score varies between New and Existing Companies.

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The suppliers may contact any or all of the Certifying Bodies independently for receiving the preferred quotation and select any Certifying Body of their choice.

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  • The Certifying Bodies may require any additional documents from the suppliers during the evaluation process for ETIP along with the following major documents:
  • Trade License (Both New & Existing)
  • Audited Financial Statements/ management accounts as applicable (Both New & Existing)
  • WPS Statistics Report (Both New & Existing)
  • Annual Production Capacity details (Both New & Existing)
  • Certified Labor list issued by MOHRE (Both New & Existing)
  • Asset Declaration Letter (Both New & Existing)
  • ETIP Manpower Declaration (Both New & Existing)
  • ETIP Skilled Labor declaration (Only Existing)
  • ETIP Plant and Machinery Declaration (Only New Companies)
  • ADDC Documents (Both New & Existing)
  • Any other documents as considered necessary for verification

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Yes, it is mandatory that you submit all these documents as applicable for New or Existing companies for formal evaluation process. The Certifying Bodies may also request for any additional documents as needed for the evaluation of the ETIP application.

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A valid industrial license is mandatory for any ETIP application. Supplier must renew any expired licenses before applying to the ETIP program.

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As part of the Electrical Tariff Incentive Program- ETIP, ADDED has empaneled the Certifying Bodies to evaluate and verify all ETIP applications under the Program (A list of certifying bodies is provided in the User Guideline for ETIP).

Manufacturing entities should visit the website of ADDED and submit their ETIP application online for evaluation purpose. All required documentation are required to be uploaded on the ETIP portal for verification by IDB.

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You will receive a system generated ETIP Enrolment Certificate and Evaluation Score Card mentioning the score and category approved under the ETIP Program.

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IDB will issue an enrollment certificate to the Electricity Tariff Incentive Program determining the category placement based on the final score. If the application score is below 50 points the entity won’t be able to able to qualify for the reduced tariff as applicable for the qualified category. The supplier will be required to submit the online ETIP Enrollment certificate to ADDC/ADDC for availing the benefit of reduced tariff under the program.

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There are no fees for the online application on the ETIP portal of ADDED.

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The supplier will be required to pay the charges as levied by the Certifying Bodies for evaluation an issuance of the ETIP certificate scorecard under the ETIP program.

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You can obtain the form from Distribution Company website: www.addc.ae main page under the electric tariff bar.

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The applicable Distribution Company will check the final approved single line diagram for verifying the Electricity Connection Load for the project site. Please note the actual consumption quantity is NOT being checked for the scoring but the approved Connection Load is taken into consideration for the project site.

For example: If the total consumption over the year is greater than 43,800MWH, then it is almost certain that your supply connection has a 5MW capacity.  However, the singe line diagrams provide the actual evidence upon which the ADDC base their decision to provide the earned score.

Moreover, multiple connectivity loads of several sites cannot be combined for one application.

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Different rates will be applied depending on the manufacturing facility performance and the score obtained from the ETIP evaluation process.

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Yes you may call IDB( 800 555 ) or email us on ( Info-idb@ded.abudhabi.ae )

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The program will offer further insight of electricity prices and expected changes based on the economic dynamics such as yearly adjustment of 3% with formal notification and announcement.

Prices are subject to escalation 3% and notification of 6 months in advance.

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The certificate validity is 1 year where the start is the date of issuing the certificate and the end is the expiry date of the certificate. The program is designed for the next 10 year from year 2019.

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For year 2020, the applied rate will be from the date of certificate issuance.

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Mr.Jonathan Churchman Davies

Email: j.churchman-davies@addc.ae

Tel: +971 2 4161853

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The form can be downloaded from addc.ae main page “Electric Tariff”.

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The connected load is the supply capacity at the interconnection with the incoming power cables.

Distribution is connected to ADDC/AADC, and is connected at up to 33KV.

Transmission is connected to the Transco system at 150KV and higher.

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They cannot unless they apply for a new connection to the transmission grid, are above a certain load (70MW) and are given permission.

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The supplier needs to list all their industrial accounts for that site and licenses for the ETIP application.

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No, the program is designed only for manufacturing industries holding industrial license in the Emirate of Abu Dhabi.

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The evaluation and verification of documents by the Certifying Body may take 4-5 weeks. The final ETIP enrollment certificate issued by IDB may take 4-5 working days.

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