The Electricity Tariff Incentive Program (ETIP) was launched by the Industrial Development Bureau (IDB) in July 2019 to boost the industry in Abu Dhabi by reducing electricity tariffs. This was done through tariff rebates based on scores assigned to businesses on certain parameters. The programme covers all industrial sectors except free zones.
The scoring methodology and procedures are streamlined to enable the entire process, from application, uploading of documents, selection of certifying bodies and the issuance of ETIP certificate, to be conducted online within a single portal https://idb.added.gov.ae/en/incentives/etip.
A key highlight of ETIP is that it is a long-term programme. The ETIP certificate has a validity of one year from the date of issue, however, it can be used for 10 years simply by renewing it each year.
This is the right time for existing businesses to apply for ETIP certification using the audited financial statement of 2020 or earlier years as they are assigned a 30 per cent score under the productivity criterion.
Applicants must submit trade license, audited financial statements or management accounts as applicable, WPS statistics report, annual production capacity details, certified labour list issued by the Ministry of Human Resources and Emiratisation (MOHRE), Asset Declaration Letter, ETIP Manpower Declaration, ETIP Skilled Labor declaration, ETIP Plant and Machinery declaration, etc. There are no online fees for applying for the ETIP certificate.
The certifying bodies grant scores based on four criteria, namely Economic Impact, Productivity, Connectivity Load, Electricity Management Load. Companies need a minimum score of 50 to be eligible for discounted tariff. There are three tariff categories for eligible companies: A, B and C for scores of 50-59, 60-79 and greater than 80, respectively.
Once the ETIP certificate is approved online, the IDB will issue an enrolment certificate determining the category placement based on the final score. Scores below 50 points will not qualify for the reduced tariff applicable for the qualified category. The supplier must submit the online ETIP enrolment certificate to the Abu Dhabi Distribution Company (ADDC) to avail of the programme's reduced tariffs.
The ETIP certification is done by independent third-party certifying bodies appointed by the programme. No other auditor or consultant may do it without this accreditation. As an accredited certifying body, MBG is ideally placed to help companies seeking the valuable ETIP certificate.
If you are an Abu Dhabi business and want to get the ETIP certification, contact MBG at:
Manoj Pandey, partner, MBG Corporate Services