December 2, 2020

Federal Electricity and Water Authority exempts developers from service delivery fees by up to 85%

The Federal Electricity and Water Authority has launched an initiative to support the investment and tourism sector in the areas served by the authority, which includes exempting project developers from connection fees with rates ranging between 80% and 85%, and replacing them with a fee for using the network, so that the payment ranges from 15% to 20% Just as a down payment by project developers, and replacing the rest of the fees with a network fee with monthly consumption bills.

The Director General of the Federal Electricity and Water Authority, Mohamed Mohamed Saleh, stated that the initiative benefits the hotels, commercial centers, and residential complexes, noting that the service delivery fees in the past were approved according to the loads provided by the developer, and classification of his connection fees if it was “freehold” “Mother” commercial.

Saleh stated during a press conference held by the authority today, Sunday, that the initiative launched by the authority aims to reduce the burden of capital costs on investment projects, reduce other sources of self-generation outside the federal network, and support increased demand for buying and selling housing units in the complexes that are implemented by developers The project, which includes the initiative to standardize the monthly invoicing tariff and apply the commercial slides system approved by the Authority to all target groups in the initiative, to become “28 fils, 33 fils, 38 fils, 43 fils.”

Saleh explained that the network usage fee will be calculated according to the type of facility and the nature of the investment in the customer’s monthly consumption bill as an alternative to paying delivery fees for new orders, and the network usage fee will also be applied in requests to add the required loads.

He said: “There is no specific period regarding the completion of the payment of the aforementioned fee, as it was calculated based on the cost of the Authority’s investment in the network, in addition to the network fee and a portion of the connection fees is paid as an advance payment based on the nature of the facility.

“In the event that the developer requests a change of the beneficiary information or a clearance procedure, a new contract is prepared for the new developer, provided that he pledges to abide by what was stated in the previous agreement of the first developer.”

He pointed out that the initiative’s work mechanism is summarized in submitting an application to approve the plans and delivery procedures approved by the authority, and the developer signs a contract for inclusion in the initiative of the authority to support the investment and tourism sectors, and the developer’s request is presented to a specialized committee to ensure that it meets the conditions for inclusion in the initiative, and accordingly The developer is notified of approval or rejection to join the initiative.

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