Capital expenditure assessment in the United Arab Emirates

Capital expenditure assessment of the water and electricity transmission and distribution companies.

Client
Regulation & Supervision Bureau, United Arab Emirates

Background
The Regulation & Supervision Bureau (RSB), the independent regulatory body for the water, waste water and electricity sector of the emirate of Abu Dhabi, appointed DNV - Energy to assess the capital expenditure (capex) efficiency of the electricity businesses of the three water and electricity network companies operating in Abu Dhabi in two consecutive projects.

Services provided by DNV
The first project included the assessment of capex incurred during the third price control period (PC3 2006-2009) and the development of an innovative independent dual methodology providing parallel evaluation utilizing the process scoring and monetary quantification methodologies.
The second project pertains to the assessment of capex incurred during the fourth price control period (PC4), and forecasting of capex for the fifth price control period (PC5). For the PC4 review, DNV - Energy developed a dual-layer metho- dology based on high-level process evaluation, underlined by international best practices, to provide a robust platform for the project scoring methodology.

DNV - Energy cooperated closely with RSB and the consultant assessing the water business of the reviewed companies to ensure all prescribed requirements are implemented within robust, yet flexible methodologies that provide tangible assessment and practical improvement recommendations.