Frequently Asked Questions: The Industrial Incentive Tariff Scheme
- 1. What is the difference between being “Eligible” for the new Tariff and “Qualifying” for it?
Only sites that are on an industrial tariff with their electricity supplier can become members of this scheme. If a site is not on an industrial tariff, they cannot join the scheme, whatever activity is being carried out on site. Sites who are on an industrial tariff must go through two stages to actually receive the incentive tariff. Firstly they must demonstrate that their business activities make them “Eligible” for the tariff. Secondly they must then meet some Electricity Demand Management (“EDM”) Qualification” criteria. In year 1 these EDM criteria do not apply and they gradually come into the scheme during years 2 and 3.
• Eligibility is proven through:
• The initial and annual issuance of the certificate by IDB.
• Qualification is proven through:
• Issuance of a conformance report by an approved Certification Body stating that the initial EDM qualification criteria have been met for years 2, 3 and subsequent years.
• Ongoing EDM qualification is proven through ongoing checks by the distribution companies on adherence to any commitments made by scheme members, depending on the year of the scheme.
- 2. How do I become eligible for the incentive tariff?
• If you are a distribution connected industrial tariff payer, in order to be eligible for an incentive tariff you must have a score of at least 50 out of a maximum of 100 according to four separate scoring mechanisms:
• Abu Dhabi value, (Maximum 40 points);
• Productivity, (Maximum 40 points);
• Connected load: Your connected load must be greater than 5MW as stated in your approved single line diagram or verified as-built drawing for your electricity supply in order to score 20 points. If your stated connected load is less than 5MW, your score will be zero.
• If you are a transmission connected customer, in order to be eligible for an incentive tariff you must have a score of at least 50 out of a maximum of 100 according to:
• Abu Dhabi value, (Maximum 40 points);
• Productivity, (Maximum 40 points);
• Connected load: You automatically score 20 points
- 3. Can I check my eligibility for the tariff before I have to spend any money on developing the evidence that I must submit?
Yes. There are two checks that you must carry out.
Check 1: The first check is on the IDB website, where you can enter estimated information about your business. This will indicate your likely score for the Abu Dhabi Value and the Productivity tests - depending on the accuracy of your estimates.
Check 2: The second check you should carry out is on your updated approved single line diagram or a verified as-built drawing of your electrical supply. If you are a distribution customer of ADDC/AADC and the connected load in your diagram is over 5MW, then you will score 20 points. If your connected load is less than 5MW you will score zero.
Transmission connected customers automatically score 20 points on the connected load test.
Based on your score you can then decide whether you want to devote resources to applying for the scheme. You should also check whether you can meet the Energy Demand Management qualification criteria in Years 2, 3 and ongoing– see the following note.
- 4. If I am, eligible, can I check whether I can qualify to receive the incentive tariff?
You must commit to paying your bills by Direct Debit, clearing any bill arrears and to paying on time. You should examine the Energy Demand Management qualification criteria, available from the IDB website, to ensure that you are happy that your site can satisfy the criteria.
- 5. If I am eligible, what forms of evidence must I submit to initially qualify?
For Year 1, no additional evidence needs to be submitted. For Years 2, 3 and subsequent years, you must submit Energy Demand Management evidence documents according to the timescales and quality requirements stated in Table 2 (Given on later pages of this document).
- 6. Is there a form that I must use to give the details of my electrical supply?
Yes. The form is called “Distribution Company Supply Details” and it is available from your supplier or from the Certification Bodies. You will use the form to record details of your site, and you will also insert images of your approved single line diagram or your verified as-built drawing and the relevant verification letter from your supplier. The form will then be uploaded to the IDB website so that your Certification Body can then access it.
- 7. What are the exact steps that I must go through to become eligible and qualify for the tariff?
The steps that you must follow are:
a). Check on the IDB website and use the online calculators that allow you to estimate your scores for Abu-Dhabi Value and Productivity.
b). Check your updated approved single line diagram or verified as-built line diagram (Verified by your electricity supplier), to confirm that you are either distribution connected with over 5MW connected load, or that you are transmission connected.
c). Examine the applicable Energy Demand Management, (EDM), qualification criteria that are relevant for each year after Year 1, and decide whether or not you are happy to sign up to them. d). Examine your estimated score and the EDM qualification criteria together and decide on whether or not you should apply for the scheme.
e). If you decide to apply, approach approved Certification Bodies (list on the IDB website) and discuss fees for issuing you with the following four items: • Abu Dhabi Value certificate;
• Productivity certificate;
• Report that EDM evidence submitted conforms with qualification criteria (Depending on the year).
f). Provide Certification Body with necessary evidence, (Including information on your electricity supply via the appropriate form), and upload EDM evidence to IDB website, depending on the year.
g). Certification Body will review evidence provided and (Depending on the year of the scheme), check Energy Demand Management evidence uploaded to IDB website. Certificates and report will be provided back to you as per your agreement with the Certification Body.
h). The Certification Body will upload certificates and EDM evidence conformance report, (Depending on the year), to the IDB website.
i). IDB will check your score and issue an incentive eligibility certificate, depending on whether you qualify, and for which band you are eligible. If you fail to qualify you will be informed.
j). Approach your distribution company and request that you receive the new incentive.
k). The distribution company will check your certificates, your connected load and your EDM conformance report, (Depending on the year), and if these are satisfactory, you will be immediately moved to the new tariff.
l). The distribution company will monitor your account to ensure that it conforms with any commitments you have made. Any failure to meet the ongoing commitments will be brought to the attention of the site for immediate remedy. In the case of significant default and at the discretion of the distribution company access to the incentive tariff may be withdrawn for a period.
Table 1: Ongoing Criteria: Must be satisfied during years 2,3 and subsequent years.
S# | Element | When? | Qualification Criteria | Checked by? |
1 |
Maintain valid appointment of Senior Executive Responsible for energy |
After start of year 2, if staff member changes or review date passes |
Spot checks. Failure to fill post or maintain valid job description date may place incentive tariff at risk. |
DISCO |
2 |
Maintain valid appointment of Energy Manager |
After start of year 2, if staff member changes or review date passes |
Spot checks. Failure to fill post or maintain valid job description date may place incentive tariff at risk. |
AADC |
3 |
Maintain valid Policy for Energy Management |
After start of year 2, if review date passes |
Spot checks. Failure to ensure policy is in date may place incentive tariff at risk. |
AADC |
4 |
Pay by Direct Debit & Promptly |
Ongoing requirement |
Monthly check. Ongoing full bill payment must be by Direct Debit and before the due date. Failure to conform with requirement may place incentive tariff at risk. |
AADC |
5 |
Peak Demand Management Commitment |
1). If approached. 2). Ongoing requirement (If agreement reached) |
1). Make reasonable endeavours to meet with the distribution company when approached to discuss peak demand and to hold open discussions. 2). Fulfil terms of any agreement reached with the distribution company. Failure to conform with these requirements may place incentive tariff at risk. |
AADC |
6 |
Power Factor Compliance |
1). If approached. 2). Ongoing requirement (If agreement reached) |
1). Make reasonable endeavours to meet with distribution company when approached to discuss power factor and to hold open discussions. 2). Fulfil terms of any agreement reached with the distribution company, including wiring regulations. Failure to conform with these requirements may place incentive tariff at risk. |
AADC |
- 8. How do I maintain my qualification for the tariff during a given year?
In order to keep the tariff for which you have initially qualified, you must meet ongoing Energy Demand Management criteria. These criteria only apply during years 2, 3 and subsequent years. They do not apply during year 1, except for the requirement to pay promptly. The criteria are explained in Table 1, that follows this paragraph.
Note that sites that entered the scheme using their ISO 50001 and ISO 14001 certificates to satisfy the relevant EDM criteria must still satisfy the scheme requirements for maintaining qualification for the incentive during each year.
- 9. How to I requalify for the tariff at the start of each new year of the scheme?
At the start of each new year of the scheme you must submit certificates to IDB for your economic performance as you did when initially joining. You must also submit the appropriate Energy Demand Management evidence documents for that year and an Certification Body’s certificate of conformance according to Table 2 that follows.
Note that for rejoining the scheme, a valid ISO 50001 or ISO 14001 certificate can be submitted in place of these documents and in place of the Certification Body’s certificate of conformance for documents. However sites with ISO 50001 and ISO 14001 certificates must still satisfy the ongoing scheme requirements for maintaining qualification for the incentive tariff during the year.
Table 2: Electricity Demand Management renewal criteria: Must be satisfied for the site to qualify to receive the tariff for Year 2 and subsequent years.
S# | Element | When? | Qualification Criteria | Checked by? |
1 |
Nominate Senior Executive Responsible for energy |
Start of year 2 and ongoing years |
Submit a nomination letter for Senior Executive to be responsible for energy that meets the minimum quality requirements as assessed in Certification Body’s report. Ensure that nomination is still valid at start of ongoing years. |
Third Party |
2 |
Nominate Energy Manager |
Start of year 2 and ongoing years |
Submit a nomination letter for a manager to be responsible for energy that meets the minimum quality requirements as assessed in Certification Body’s report. Ensure that nomination is still valid at start of ongoing years. |
Third Party |
3 |
Policy for Energy Management |
Start of year 2 and ongoing years |
Submit an energy policy that meets the minimum requirements checklist as assessed in Certification Body’s report. Ensure that policy is still valid at start of ongoing years. |
Third Party |
4 |
5 Year Power Forecast |
Start of year 2 and ongoing years |
Submit an annual 5 year demand forecast that meets the minimum quality requirements as assessed in Certification Body’s report. |
Third Party |
5 |
Executive Team/ Main Board Energy Reporting |
Start Year 3 and ongoing years |
When available, and definitely at start of Year 3, the site must submit examples of reports that meet the minimum quality requirements as assessed in Certification Body’s report. |
Third Party |
6 |
Basic Energy Survey |
Start of year 3 and ongoing years |
First submit latest at the start of year 3 or have submitted earlier, a site energy survey report which must be no more than 3 years old and which meets minimum quality requirements, as assessed in Certification Body’s report. |
Third Party |
7 |
Energy Plan and Reduction Targets |
Start Year 3 and ongoing years |
By the start of Year 3 and the start of each subsequent year, the site will submit an updated annual plan and targets to reduce energy consumption which meets minimum quality requirements, as assessed in Certification Body’s report. |
Third Party |
- 10. I do not understand what some of the documents are. Is there guidance on how to prepare them?
Yes. Checklists will be provided that clearly identify what contents will be expected in each of the documents to be submitted.
In addition, specimen templates will be available, together with guidance that clearly states what information to gather, how to analyze it and what commentaries should accompany it. ADDC/AADC will provide training to assist your staff in developing the more complex documents which are due in year 3 of the Program.
- 11. Some of the documents sound very complicated. Will I be able to develop them without spending too much time or paying expensive consultancy fees?
Yes. The documents have been specified so as to be very simple to develop and to check. The guidelines we will provide will allow energy managers and executives to develop materials on their own and with only very limited amounts of time required. The intention is that the information contained in the documents will encourage organizations to invest further money and resources in more sophisticated versions only if the value gained from doing so is appropriate for their business.
- 12. Are there clear quality criteria that submissions must meet?
Yes. We have developed checklists that will be available to help you understand the quality thresholds that must be exceeded.
- 13. Do I need to adopt ISO 50001?
No, but if you have it you will be judged to be in automatic compliance with the initial Energy Demand Management criteria for a given year. Note that you will still be required to satisfy ongoing requirements, such as holding discussions with your distribution company on power factor and peak demand, paying promptly and submitting ongoing items of evidence.
- 14. I have ISO14001 certification. Does that help?
Yes. If you have a certified ISO 14001 system you will be judged as automatically meeting the initial qualification criteria. Note that ongoing requirements will be the same as for all organizations, (See previous note for ISO 50001 certificate holders).
- 15. I have several separate sites. Do I need to register each one separately?
Yes. Each one should register and upload evidence separately. However for EDM, the same staff members can act as Director with responsibility for energy or Energy Manager. In addition, the same formats of evidence can be submitted, and joint reports, plans and targets can be submitted for multiple sites so as to make the process more efficient.
- 16. I have several sites. Can I aggregate demand between them to come up with >5MW connected load?
No. Each site must individually exceed 5MW to receive the connected load score.
- 17. If I am on a time of use tariff, what will happen?
The underlying tariff that applies will be discounted down to the final billed amount by IDB. This amount will change as the present time of use tariff changes to give a constant discounted rate that appears on your bill.
- 18. How will I receive the incentive?
The incentive will be received directly on my bill. Any arrears that apply will be credited to your next bill.
- 19. If I drop out of the scheme for any reason, will I still receive the incentive?
No. As soon as you decide to leave the scheme or you are removed for reasons of non-compliance with terms set by either IDB or the distribution company, you will cease to receive the tariff from the date that your leaving applies. Any incentives received while you were still an approved member of the scheme will remain yours.