Electrical Tariff Incentive Program

Electrical Tariff Incentive Program

The Electrical Tariff Incentive Program (ETIP) in Abu Dhabi was established by the Department of Economic Development to enhance Abu Dhabi’s reputation as a preferred location for industrial projects and boost both the economic impact of the industrial sector and the efficiency of energy use in the Emirate.

The ETIP offers discounted electricity tariffs to manufacturers with an active industrial license in the Emirate of Abu Dhabi. The scoring criteria differs for new companies as compared to the operative entity(s) for more than 6 months.

The criteria for ETIP certification for manufacturing entities that are in operation/production for more than 6 months from the date of issue of the production/operational license from ADDED is as below:

  • Economic Impact (50% weight), comprising
    • Investment in Abu Dhabi
    • Emiratization
    • Expatriate contribution
    • Supply Chain score
  • Productivity (30% weight)
    • A measure of Value Add (= Output minus Input value) per worker
  • Connectivity Load (10% weight)
    • EMS score if <5MW in ADDC/AADC Site Power Connection detail form
  • Energy Management System (10% weight)
    • Based on EMS score

For new companies (manufacturing entities that have under construction license from ADDED or which have been in operation/production for less than 6 months production/operational license from ADDED) the following criteria applies

  • Economic Impact (50% weight), comprising
    • Investment in Abu Dhabi
  • Supply chain score (30% weight)
    • Third-party logistic fees and charges in Abu Dhabi
  • Connectivity Load (10% weight)
    • EMS score if <5MW in ADDC/AADC Site Power Connection detail form
  • Energy Management System (10% weight)
    • Based on EMS score

The applicant company is assigned a ‘Balanced Score Card’. This is a composite weighted score across the three criteria. Companies need a minimum score of 50 to be eligible for discounted electricity tariff. For eligible companies, there are three tariff slabs for scores of 50-59, 60-80 and > 80 respectively. The auditing process for the scoring is done by a panel of select certifying bodies.

Eligible companies reap the benefit of lower electricity tariffs, a critical input for any manufacturer, and thereby lower operating costs and improved financial results.

As a top DED-empaneled certifying body for the ETIP, MBG Corporate Services helps you obtain your ETIP certificate with expert guidance and skill. Our consultants have experience and in-depth insider knowledge of ETIP execution across various manufacturing industries.

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