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Price Controls
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The economic regulation of the sector companies draws upon the general duties of the Bureau set out in the Law to promote competition in the sector, to ensure the operation and development of an efficient and economic sector, and to protect the interests of consumers of water and electricity as to the terms and conditions and price of supply.
These objectives are achieved mainly by the implementation of price controls for the monopoly companies (ADWEC, TRANSCO, ADDC, AADC, RASCO and ADSSC) and by ensuring the economic purchase of water, electricity and fuel by ADWEC.
The price controls cap the revenue of the monopoly companies, whereas the revenues of the generation and desalination companies are constrained by the power and water purchase agreements (PWPAs) which are in turn subject to the economic purchasing licence obligation of ADWEC.
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