Law No. (11) of 2018 Concerning the Establishment of the Department of Energy

Article 1 — In the implementation of the provisions of this Law, the following words and ¶

phrases shall have the meanings corresponding thereto unless the context
requires otherwise:
State : The United Arab Emirates.
Emirate : The Emirate of Abu Dhabi.
Executive
Council
: The Executive Council of the Emirate.
Department : The Department of Energy.
Energy Sector : Covers all activities, works and services related to:
1. The Production, treatment, storage, transportation,
distribution, supply, sale and purchase of gas, oil
and derivatives thereof.
2. The generation, storage, transportation,
distribution, supply, sale and purchase of electricity
of all kinds (clean, renewable, traditional).
3. The production, treatment, desalination, storage,
transportation, distribution, supply, sale and
purchase of water.
4. The collection, treatment and disposal of sewage
and wastewater and the recycling of treated
wastewater.
5. The production, storage, distribution and supply of
coolant liquid for the central cooling applications.
Affiliates : The entities operating in the Energy Sector, affiliated to
the Department, under its control and supervision and
which are specified by a resolution of the Executive
Council.

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Section (2)
Establishment, Objectives and Competencies of the Department

Article 2 — • Pursuant to the provisions of this law, a department called "Department ¶

of Energy" shall be established and shall replace Abu Dhabi Water and
Electricity Authority and the Regulation and Supervision Bureau for the
Water and Electricity Sector.
• The employees and staff of Abu Dhabi Water and Electricity Authority
and the Regulation and Supervision Bureau for the Water and Electricity
Sector, along with all of their assets, properties, rights and obligations,
shall be transferred to the Department. The Department shall be the legal
successor to the two entities.

Article 3 — The Department aims at providing the best level of services related to the ¶

Energy Sector, advancing it and keeping pace with the global developments
in this field, in accordance with the applicable legislations and in coordination
with the competent bodies within the State.

Article 4 — Without prejudice to the competencies of the Supreme Petroleum Council, ¶

the Department shall, when the need arises and in coordination with the
Council, assume the following competencies:
1. Propose the strategic and implementing plans for the Energy Sector
in the Emirate, have them approved by the Executive Council and
supervise their implementation.
2. Follow-up the Affiliates’ undertaking to implement the strategic and
implementing plans for the Energy Sector.

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3. Monitor and supervise all Affiliates such as their disbursements from
their budgets and revenues earned, as well as their commitment
to their duties and competencies, and approve their strategic and
implementing plans.
4. Regulate the Energy Sector in all aspects through the development
of policies, standards, regulations, resolutions and implementing and
operational circulars for said Sector.
5. Monitor and supervise the Energy Sector in accordance with the
relevant legislations, conventions and treaties in force for said Sector
on the local and international levels, and in coordination with the
relevant entities in the State and abroad.
6. License all institutions, entities, companies and persons working in
the Energy Sector and monitor their commitment to providing the
optimum level of quality of services in accordance with the legislations
in force, and in coordination with the relevant entities.
7. Propose the fees, tariffs and prices related to its competencies and
submit them to the Executive Council for approval, in accordance
with the applicable regulations.
8. Submit periodic reports and analytical studies to Abu Dhabi Executive
Office in relation to the department’s competencies.
9. Encourage investments and partnerships with the private sector
for projects related to the competencies of the Department in
coordination with the relevant entities.
10. Any other competencies or duties assigned thereto by the Executive
Council.
• The Department may delegate some of its competencies to any other
governmental entity or outsource some to the private sector upon the
approval of the Executive Council.

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Article 5 — • The Chairman of the Executive Council shall issue a resolution to specify ¶

any additional competencies for the Department.
• The Executive Council may amend the Department’s competencies
mentioned in this Law or in any other legislation by deletion, addition or
transfer.

Article 6 — All persons, entities and public and private companies shall provide the ¶

Department with the documents and information it requires to carry out or
execute its competencies.

Article 7 — The Executive Council shall issue a resolution to determine the Affiliates that ¶

shall be under the monitoring and supervision of the Department.
Section (3)
General Provisions

Article 8 — In agreement with the Chairman of the Department, the Chairman of ¶

Abu Dhabi Judicial Department shall issue a resolution identifying the
Department’s officers who have been granted the law enforcement authority
for offences within their jurisdiction. They shall have the right to inspect and
monitor all entities, companies and persons operating in the Energy Sector,
in order to verify the implementation of the provisions of this Law and its
implementing regulations, resolutions and circulars.

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Article 9 — Any establishment or individual shall be prohibited from engaging in any ¶

activity in the Energy Sector in the Emirate without having obtained the
required license from the Department, in accordance with the applicable
regulations.

Article 10 — • Without prejudice to any more severe penalty provided for by any other law, ¶

an administrative fine of no more than AED (10,000,000) ten million shall
be imposed on whoever violates the provisions of this Law and its regulatory
and implementing rules, as well as its implementing regulations, policies,
resolutions and circulars.
• The Department shall take charge of collecting the administrative fines.
Upon the approval of the Executive Council, the Chairman of the Department
shall issue a schedule specifying the offences and the administrative fines
prescribed for each of them, without exceeding the fine provided for in this
Article.
• The Chairman of the Department or whom he authorises, may propose
reconciliation to the offender, provided that this is established in the record
of proceedings. The offender who accepts the reconciliation shall pay a fine
equivalent to 75% of the total administrative fine determined for the offence
within a period not exceeding sixty days from the date of proposing the
reconciliation.
• In all cases, if the offender fails to remove the effects of the offence on the
date scheduled, the Department shall remove such effects at the offender’s
expense.
• The regulatory and implementing rules of this Law shall specify the
procedures of the above-mentioned reconciliation, including its timeframes.

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Article 11 — • The Department may impose any of the following administrative penalties: ¶

1. Notice.
2. Warning.
3. Placing the establishment under financial, administrative and technical
supervision.
4. Temporary suspension of the activity.
5. Cancellation or suspension of the licence.
6. Closing of the establishment temporarily or permanently.
• Grievances may be filed against the administrative penalties before the
Department within sixty days from the date of notification of the grievant.
Failure to decide upon the grievance within 90 days from the date of its
submission shall be regarded as an acceptance of the grievance.
• The regulatory and implementing rules of this Law shall determine the
procedures and controls required for the application of the aforesaid
administrative penalties.

Article 12 — The Department shall propose its organisational structure and submit it ¶

to the Executive Council for approval, in accordance with the applicable
regulations.

Article 13 — • The financial laws and regulations in force in the Emirate shall apply to the ¶

Department.
• The human resources laws and regulations in force in the Emirate shall
apply to the employees of the Department.
• The Civil Retirement Pensions and Benefits law in force in the Emirate
shall apply to the nationals.

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Article 14 — • Upon the approval of the Executive Council, the Chairman of the ¶

Department shall issue the regulatory and implementing rules of this Law.
• The policies, regulations, rules, resolutions and circulars in force shall
remain applicable in a manner consistent with the provisions of this
Law until the issuance of its implementing policies, regulations, rules,
resolutions and circulars.
• The Chairman of the Department shall issue the implementing and
operational policies of this Law.

Article 15 — • Any text or provision in the aforesaid Law No. (2) of 1998 or any other ¶

legislation which is contrary to the provisions of this Law, shall be repealed.
• Any text or provision, prescribed in the legislations establishing Affiliates
which is contrary to the provisions of this Law, shall be repealed.
• Any text or provision contrary to the provisions of this Law shall be
repealed.

Article 16 — This Law shall be effective from the date of its issuance and shall be published ¶

in the Official Gazette.
Issued by us in Abu Dhabi
On: 20 February 2018
Corresponding to: 4 Jumada Al Akher 1439 H
Khalifa bin Zayed Al Nahyan
Ruler of Abu Dhabi

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