Legislation Details
- Full Title: Federal Law by Decree Regarding Union Water and Electricity Company (UWEC)
- Law Type: Federal Law by Decree
- Law Number: [31] of 2020
- Issued Date: 27 Sep 2020
- Effective Date: 29 Dec 2020
- Official Gazette: No. 687
- Sector: Government Affairs
- Status: Active
- Number of Articles: 40
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law by Decree establishes the Union Water and Electricity Company (UWEC) as a public joint stock company fully owned by the Emirates Investment Authority (EIA). UWEC replaces the Federal Electricity & Water Authority (FEWA) and takes over all its rights, assets, and obligations. UWEC is tasked with providing electricity and water services, as well as sewerage and sanitation services, across the UAE, including in free zones. The law outlines UWEC's activities, management structure, budget, and regulatory framework, including penalties for damaging its public network. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Arts. 1-19) The establishment of UWEC as a commercial, investment-focused entity is expected to improve the efficiency and sustainability of the UAE's water and electricity services. The law grants UWEC significant autonomy and regulatory powers, which could streamline operations and enable better coordination with the private sector. This is particularly important as the UAE continues to develop its infrastructure and diversify its economy. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Arts. 1-19)
What is the scope and purpose of this law?
The purpose of this Federal Law by Decree is to transform the Federal Electricity & Water Authority (FEWA) into a public joint stock company called the Union Water & Electricity Company (UWEC), which will be fully owned by the Emirates Investment Authority (EIA). UWEC is tasked with providing electricity, water, sewerage, and sanitation services across the UAE, including in free zones. The law grants UWEC an independent legal personality and the authority to carry out its activities on a commercial and investment basis. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Arts. 1-5)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Authority: The Federal Electricity & Water Authority (FEWA) and the Emirates Investment Authority (EIA)
- Government Body: Ministries, Public Authorities and Institutions, Federal and Local Government Bodies
- Company: Union Water and Electricity Company (UWEC)
- Articles of Association: Articles of Association of UWEC
- Board of Directors: Company Board of Directors
- Chairman of the General Assembly: Chairman of the General Assembly
- Public Network: Facilities, plants, equipment, fittings, systems, power, water and fibre optic lines, and assets owned, managed or supervised by UWEC
(Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include: 1. UWEC must establish power generation, water supply, and capacity-raising projects. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 5(1)) 2. UWEC must establish power and water transmission and distribution lines. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 5(2)) 3. UWEC must establish sewerage and sanitation drainage services projects and the necessary infrastructure in the UAE. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 5(3)) 4. UWEC must invest funds in any commercial, financial, service or industrial fields related to its activities, subject to coordination with the EIA. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 5(4)) 5. UWEC must conclude contracts with the private sector to establish power plants and water supply plants in the areas where it operates. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 5(5))
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements for UWEC.
What rights and protections does this law provide?
The law provides the following rights and protections: 1. UWEC has the right to issue decisions and take necessary measures to protect its public network from any destruction. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 11(2)) 2. UWEC has the right to repair any damage to its public network at the expense of the violator. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 11(3))
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this law are: 1. The Cabinet, which is responsible for issuing the Articles of Association for UWEC and amending them if UWEC is fully owned by the EIA. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 6) 2. The Board of Directors of UWEC, which is responsible for exercising all powers and competencies related to UWEC's management. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 8(1)) 3. The Minister of Justice, who, in agreement with the Chairman of the Board of Directors, designates UWEC employees as judicial officers for establishing violations of the law. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 14)
What are the penalties for non-compliance?
The law specifies the following penalties: 1. Any person who harms the public network or UWEC property or exploits the same illegally shall be punished by imprisonment and a fine of a minimum of 50,000 AED and a maximum of 1,000,000 AED, or one of these two penalties. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 13) 2. The Cabinet, upon the recommendation of the Board of Directors, shall issue a decision including a schedule of the violations of the damage caused to the public network or service lines of UWEC, the administrative fines collected from natural or legal persons in exchange for such damage, fines deduction and exemptions. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 12)
What fees, charges, or financial provisions are specified?
The law states that the Cabinet shall determine the following by a decision upon the recommendation of the Board of Directors: 1. Prices of electricity and water consumption services provided by UWEC. 2. Fees and insurance for the services provided by UWEC, and cases of exemption. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 17)
What exemptions or exceptions apply?
The legislation does not specify any exemptions or exceptions.
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms under this law.
What are the key deadlines and time limits?
The law specifies the following key deadlines and time limits: 1. The Board of Directors shall issue the regulations and decisions necessary for the application of the provisions of this law within one year as of the effective date. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 15(3)) 2. This law by decree shall come into force 90 days after the date of its publication in the Official Gazette. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 19)
How does this law interact with other UAE legislation?
This law interacts with the following other UAE legislation: 1. It repeals Federal Law No. (31) of 1999 on the establishment of the Federal Electricity & Water Authority (FEWA). (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 18) 2. It states that the provisions of the Federal Law No. (2) of 2015 on Commercial Companies shall apply to UWEC, unless otherwise provided in this law or the Articles of Association. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 16) 3. It references several other federal laws, including those related to labor, pensions, and taxation. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Preamble)
When did this law come into effect?
This Federal Law by Decree came into effect 90 days after its publication in the Official Gazette No. 687 on 30 September 2020, which was 29 December 2020. (Federal Law by Decree Regarding Union Water and Electricity Company (UWEC), 2020, Art. 19)
Source Documents
This article analyses Federal Law by Decree Regarding Union Water and Electricity Company (UWEC) for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.