The Abu Dhabi water and electricity sector is structured on the well understood "Single buyer" model, where all production capacity (power or water) is purchased centrally by ADWEC*. Water and electricity is then sold to distribution and supply companies via an annually adjusted Bulk Supply Tariff (BST).
The single buyer, transmission, distribution, supply and wastewater networks are monopoly activities so are regulated economically via the CPI-X system.
The transmission company (TRANSCO) generates income by the carriage of units using a Transmission Use of System (TUoS) tariff.
Both the BST and TUoS are approved annually by the Bureau.
* ADWEC - The Abu Dhabi Water and Electricity Company.