Abu Dhabi's Department of Energy set capital expenditure allowances of AED 16,202 million for the emirate's four regulated network companies over 2023–2026, 23% below the companies' own adjusted forecasts. That is about AED 4.2 billion a year for transmission, distribution and wastewater networks under the Second Regulatory Control (RC2).
A bigger envelope than RC1, but trimmed
RC2 still allows more than the first control. RC1, covering 2018–2021, allowed AED 12.2 billion of capital spending in total. Operating allowances also rose, from around AED 3.2 billion a year in 2018 prices to around AED 4.2 billion a year in 2023 prices. The regulator set a 4.9% WACC for RC2, while the regulatory asset value sat at around AED 89–93 billion over the period, against AED 114.2 billion (2018 prices) at the start of RC1.
Water is under a third of the revenue
Projected maximum allowed revenue for the four companies was AED 13,739 million in 2023, rising to AED 13,817 million in 2026 in 2023 prices. Water businesses accounted for AED 4,075 million of the 2023 figure, or 29.7%: AED 2,161 million for transmission, AED 1,294 million for ADDC and AED 620 million for AADC.
The clock runs out in December
RC2 ends on 31 December 2026. On 26 October 2026 the Department's price controls page listed no RC3 document, and no RC3 consultation or decision had been published. The network companies have since been rebranded as TAQA Distribution, TAQA Transmission and TAQA Water Solutions, so the next control will apply to a reshaped group.
Which suppliers already hold major desalination and wastewater work, how the Department and EWEC buy, and where suppliers should focus first are set out in the full brief. The full report, Department of Energy, Abu Dhabi Emirate: Utility Account Brief, is available for USD 499 at https://ourfuturewaterintelligence.com/reports/department-of-energy-abu-dhabi-emirate-utility-account-brief. For a free overview, read the Department of Energy, Abu Dhabi Emirate Utility Snapshot at https://ourfuturewaterintelligence.com/utilities/department-of-energy-abu-dhabi-emirate.