Dubai: The Dubai Government has created a regulatory body for the utilities sector and will soon put a framework in place that could pave the way for the private sector to enter the power generation and utility businesses, Gulf News has learnt.
The Dubai Executive Council has created a regulatory authority under the Higher Committee for Energy and Environment, Saeed Mohammad Al Tayer, CEO of the Dubai Electricity and Water Authority (Dewa), told Gulf News in an exclusive interview yesterday.
"The regulator will set up a legislative and monitoring agency that will create a healthy environment to encourage private-public sector partnerships," Al Tayer said.
In January, the government said it will allow public-private partnership in the emirate's utility sector, which has so far been controlled by the government. Dewa, which was formerly the Dubai Electricity Company in the early 1990s, has been controlling the power generation, transmission and distribution business across the emirate.
"The regulatory authority will have its own budget. It aims to create a transparent system for private investors that will include water and electricity tariff."
Dispute
As an example, he said any dispute on power tariffs will be governed by agreements between producers and buyers. The new entity will develop rules and regulations for a new investment model, based on international best practices for licensing new power generation and water desalination companies.
"The mission of the regulator might include the transmission and distribution sectors in future," Al Tayer said. The new regulator will contribute towards building a solid framework for the privatisation of the sector in Dubai.
The main role of the regulator is to control tariffs in a transparent manner.
Al Tayer said that no Dewa staff would serve on the regulatory authority's board.
Independence
"It is going to be an independent body and will control and license the establishments related to the power and water sector.
"The authority will develop the economic, technical, environmental and safety standards that all establishments that work in power generation and water desalination will have to adhere to."
A regulator in Dubai will encourage private sector participation in this field and will create a competitive atmosphere among them as well as protecting the rights of the investors and enhance their confidence, he said.
