The Federal Electricity and Water Authority launched an initiative to support the investment and tourism sector in the areas it serves, which includes exempting project developers from connection fees with rates ranging between 80% and 85%, and replacing them with a fee for using the network, so that it ranges from 15% to 20% only as a advance payment by the developers Project, and the rest of the fees are replaced by the network usage fee with the monthly consumption bills.
The Authority’s Director-General, Mohamed Saleh, stated that hotels, malls and residential complexes benefit from the initiative, noting that the service delivery fees were approved according to the loads provided by the developer, and the classification of its connection fees, if they are free or commercial property.
Saleh stated, during a press conference held by the authority yesterday, that the initiative aims to reduce the capital cost burdens on investment projects, reduce other sources of self-generation outside the federal network, and increase demand for buying and selling housing units in complexes implemented by project developers, and the initiative includes standardizing the tariff for bills Monthly and applying the commercial slideshow system approved by the authority to all the targeted groups in the initiative to become 28 fils, 33 fils, 38 fils, 43 fils ». Saleh explained that the network usage fee will be calculated according to the type of facility and the nature of the investment in the customer’s monthly consumption bill, as an alternative to paying delivery fees for new orders.
He said: "There is no specific period for the completion of the payment of the fee, as it was calculated based on the cost of the Authority's investment in the network, in addition to the network fee, and a percentage of the connection fees is paid as an advance payment based on the nature of the facility." He added, "In the event the developer requests a change of the beneficiary information or a clearance procedure, then a new contract is prepared for the new developer, provided that he pledges to abide by what was stated in the previous agreement of the first developer." He pointed out that the initiative's mechanism of work boils down to submitting an application to approve the plans and the delivery procedures approved by the authority, and the developer signs a contract for inclusion in the initiative of the authority to support the investment and tourism sectors, and the developer’s request is also presented to a specialized committee to ensure that it meets the conditions for inclusion in the initiative, and accordingly The developer is notified of approval or rejection to join the initiative.
The "initiative" aims to reduce the capital cost on investment projects.