New regulations in Dubai for district cooling services

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New regulations have been introduced in Dubai for district cooling services.

Dubai's Crown Prince and Chairman of The Executive Council of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has issued Executive Council Resolution No. (6) of 2021 in this regard.

It 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 is applicable to providers of district cooling and billing services, including service providers in private development zones, free zones and Dubai International Financial Centre (DIFC).

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.

Following the latest announcement, only service providers duly licensed by RSB and other concerned departments are permitted to provide district cooling and billing services in Dubai.

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

It also 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.

The Chairman of the Dubai Supreme Council of Energy (DSCE) 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.

The DSCE's Chairman 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.

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