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The Electricity & Cogeneration Regulatory Authority Case Study

Development of the regulatory framework for district cooling services

Electricity & Cogeneration Regulatory Authority

Kingdom of Saudi Arabia

IPA was appointed by the Electricity & Cogeneration Regulatory Authority (ECRA) to help them develop a regulatory framework which would enable them to effectively play their role as the Regulator for District Cooling services throughout the Kingdom of Saudi Arabia.

IPA worked with ECRA to determine the economic regulatory guidelines applicable for District Cooling service providers and assessed the nature and scope of the regulatory oversight required.  IPA also developed the licensing requirements for the sector based on the physical and operational market structure; developed and reviewed potential pricing methodologies to be adopted by ECRA and developed the criteria for when District Cooling regulations should be applied.

As part of this assignment, IPA also assessed the potential implications of mandating the use of district cooling and assessing the potential economic and regulatory impacts. An international best practice review was also conducted to identify regulatory structures adopted by other jurisdictions in order to outline their benefits and weaknesses in implementing similar structures in the Kingdom.