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Tariffs
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The Bureau is responsible, amongst other things, for all matters relating to the economic and financial performance of the sector companies in the Emirate of Abu Dhabi, which includes the sector tariffs and charges.
The water and electricity sector companies, all operating as monopolies in their field, carry out transactions with each other at respective tariffs and charges that are approved by the Bureau. There are two distribution companies, Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) each acting as the sole distributor and supplier of electricity and water in its area. Both ADDC and AADC buy water and electricity from the single-buyer, the Abu Dhabi Water and Electricity Company (ADWEC) and utilize the transmission system of Abu Dhabi Transmission and Despatch Company (TRANSCO). ADDC and AADC then distribute their water and electricity to their respective end consumers.
The distribution companies pay ADWEC a Bulk Supply Tariff (BST) for the purchase of water and electricity and TRANSCO a Transmission Use of System Charge (TUoS) for the use of its transmission system. The distribution companies then receive revenue from their final customers and subsidy from the government.
All transactions between the sector companies and any related tariffs take place on the basis of economic cost. This gives the government the assurance that subsidy levels can be kept to the minimum amount consistent with the proper funding of the sector.
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