Empower launches awareness campaign on district cooling billing

Empower launches awareness campaign on district cooling billing

Company’s billing is based on actual metered consumption of cooling service

Dubai, UAE, 22nd May, 2011: Emirates Central Cooling Corporation (Empower) has launched an awareness campaign on the billing of its services in an attempt to increase transparency and loyalty among its rapidly increasing customer base in Dubai.

Ahmed Bin Shafar, CEO, Empower, said: “We were the first district cooling (DC) company in the UAE to introduce metering in 2007. We consider customers as the backbone of our operations and raising customer awareness of our services and billing systems is the key to winning their loyalty.”

As and when customers of Empower use the air-conditioning, the meter will run at the rate of 0.568 fils per RT per hour. It is billed in arrears at the end of each month. On the other hand, there is the demand charge, which is a recurring annual fee, levied by Empower for providing District Cooling Service at AED 750 per Refrigeration Ton (RT) per annum, billed and paid quarterly in advance.

Bin Shafar emphasized that Empower bills its customers based on the actual metered consumption of cooling services. The RT of the customer’s unit is pre-determined by the developer depending on its unit area and premise type.

Forming part of the bill is the Meter Maintenance which is charged quarterly at Dhs 50 per quarter to cover the testing and maintenance of each meter installed in the apartment. It is billed in arrears in the last month of each quarter, while the connection charge is a one-off fee to be paid by the owner for the connection, which is different from the Refundable Security Deposit that is paid at the time of registration.

Bin Shafar said that like any other utilities, Empower charges are linked to the cost of inputs and general inflation index and are subject to revision, and, as such, tariffs are subject to change.

To save energy, customers must control their consumption by optimizing the setting of their thermostat or reducing cooling losses through their windows and doors.

Bin Shafar added: “Empower's District Cooling system is underpinned by a skilled round-the-clock service team and a comprehensive set of emergency back-up systems that ensure complete reliability.”

District cooling is measured in refrigeration ton which is equivalent to 12000 BTU's per hour. Refrigeration Ton is the unit measure for the amount of heat removed. Refrigeration Ton is defined as the heat absorbed by one ton of ice (2000 pounds) causing it to melt completely by the end of one day (24 hours).

District cooling systems can replace any type of air conditioning system, but primarily compete with air-cooled reciprocating chiller systems serving large buildings which consume large amounts of electricity.

Bin Shafar added: “This air-conditioning system is subject to a difficult operating environment, including extreme heat, saline humidity and windborne sand. Over time, performance, efficiency and reliability suffer, leading to significant maintenance costs and ultimately to equipment replacement.”

This awareness campaign reflects the core values of Empower and it reinforces its position on the global front as an organization that delivers efficient service with transparent billing system.

About Empower: Emirates Central Cooling Systems Corporation (Empower) is a joint venture between Dubai Technology and Media Free Zone (TECOM) Investments and Dubai Electricity and Water Authority (DEWA), created to provide energy-efficient district cooling services to large-scale real estate developments. Empower plans to diversify into other energy efficiency and conservation services. Empower's district cooling systems (DCS) provide effective and efficient means of air conditioning. Water is cooled in central plants and distributed through a network of piping systems to individual customer buildings. DCS achieves economies of scale by using centralised plants instead of individual cooling units in each building. The centralised system results in reduced capital and operating costs, thus reducing air-conditioning set-up and energy costs per building. Empower is set to become one of the largest district cooling companies in the region.

Empower calls on banks to invest in the district cooling industry

Empower calls on banks to invest in the district cooling industry

Ahmad Bin Shafar: district cooling business has low risks and offer high returns

Dubai, UAE, 2nd May 2011: Emirates Central Cooling Systems Corporation (Empower), a joint venture between TECOM Investments and Dubai Electricity and Water Authority (DEWA) and the largest district cooling services provider in the Middle East, has urged regional and local banks to enhance their funding to district cooling industry which is considered one of the safest industries in terms of risks and return on investment (ROI).

Ahmad Bin Shafar, CEO of Empower, added: “Key players in the district cooling industry in the UAE and the Gulf have succeeded in building a world-class district cooling infrastructure. The demand has risen rapidly in the UAE in the last decade, which lowers the risks of such investments significantly compared to other opportunities.”

Demand for district cooling has been increasing rapidly in the last decade. In the UAE, it was first used in the 1970s at the Dubai International Airport. It began to be adopted commercially in 1998 with the real estate boom in the country. The adoption rate in this technology has remarkably increased in the past five years especially amongst large scale projects.

In Dubai, residents are becoming increasingly aware of the importance of using district cooling system as an alternative to conventional AC system, leading to energy saving and environment conservation, as well as lower operations and maintenance costs.

“Despite the positive scenario, banks are reluctant to invest in the sector due to lack of understanding of the nature of the business.. As a result, a golden opportunity is being lost to invest in a promising and safe industry in the nature of utility, considering high ambient temperatures prevailing almost through out the year.”

“We have succeeded in building world class district cooling infrastructure that is considered an ideal economic and environmental solution for residential and commercial units, offices and hotels,” added Bin Shafar.

Through an ambitious strategy to finance its projects through an optimal mix of debt and equity structure, Empower announced late last year that it had successfully refinanced a US$175 million credit facility through a consortium of Royal Bank of Scotland, Standard Chartered, Citibank, Emirates NBD and Mashreq. This was part of an earlier facility of US$225 million, out of which Empower settled US$50 million. The company has refinanced the balance of US$175 million for a five-year tenor repayable between 2011 and 2015.

Bin Shafar added: “Refinancing of a facility of this magnitude clearly demonstrates the robustness and sustainability of Empower’s business model and the confidence of the international and local banks and financial institutions in the company’s leading position in the Middle East. Moreover, it signals promising future for the district cooling industry on the global and regional stage.”

Empower has been growing steadily as part of its plans to position itself as a major player in the global front.

Empower to help peers in the region to boost district cooling industry that is growing between 15 and 20% annually

Empower to help peers in the region to boost district cooling industry that is growing between 15 and 20% annually

Bin Shafar: Absence of long term planning is biggest obstacle facing District Cooling companies


Dubai, UAE, 16th January, 2011: Ahmad Bin Shafar, CEO of Emirates Central Cooling Corporation (Empower), the largest district cooling service provider in the region, has invited District cooling companies in the Middle East to benefit from EMPOWER’s experience and boost the growth of the industry that is growing between 15 and 20 per cent annually.

Shafar said district cooling industry is faced with obstacles like absence of long term planning. He said though the Middle East is still in its fancy in the field district cooling, the potential is great as government support is huge and new real estate projects launched over the past five years demand this technology. Further, this technology is environment friendly and is in line with government approach to energy conservation.

Bin Shafar pointed out that other challenges include lack of high caliber technical and marketing personnel which has led to financial issues. In contrast, Empower achieved a revenue growth of 27 percent in 2010, driven by a prudent policy.

Bin Shafar added: “We are ready to support our peers in the industry so that we can enhance the global competiveness of the Gulf district cooling industry. We have developed expertise that has been acquired through seven years of hand work and international collaboration.”

Bin Shafar said that the Gulf has a competitive edge compared to many other countries in the world because of its recent adoption of district cooling and this technology is seamlessly integrated into the real estate projects, unlike places in Northern America and Europe where the technology has to be added to existing projects.

Bin Shafar added that the UAE was the first in the Middle East to realize the importance of district cooling as an alternative to conventional cooling, compared to very modest usage in other parts of the Middle East.

Empower succeeded in adopting world class district cooling infrastructure to implement this system that is considered an ideal economic and environmental solution for residential and commercial units, offices and hotels. The operational savings in a residential unit compared to conventional AC technologies is remarkable.

Empower tops the list of companies providing district cooling service in the region. The company, owned by DEWA and TECOM, had adopted a clear strategy to preserve environment through aggressively disseminating this technology and conducting campaigns to highlight its strategic value in the short and long run to the people and the society in general.

About Empower:
Emirates Central Cooling Systems Corporation (Empower) is a joint venture between Dubai Technology and Media Free Zone (TECOM) Investments and Dubai Electricity and Water Authority (DEWA), created to provide energy-efficient district cooling services to large-scale real estate developments. Empower plans to diversify into other energy efficiency and conservation services. Empower's district cooling systems (DCS) provide effective and efficient means of air conditioning. Water is cooled in central plants and distributed through a network of piping systems to individual customer buildings. DCS achieves economies of scale by using centralised plants instead of individual cooling units in each building. The centralised system results in reduced capital and operating costs, thus reducing air-conditioning set-up and energy costs per building. Empower is set to become one of the largest district cooling companies in the region.

Empower to adopt a conservative demand-based strategy in investing in new plants

Empower to adopt a conservative demand-based strategy in investing in new plants

Bin Shafar: This has been the company’s strategy since inception to ensure high return on investment

Dubai, UAE, 20th December, 2010: Ahmed Bin Shafar, CEO of Empower, the largest district cooling service provider in the region, revealed that the company has adopted a conservative strategy in investing in building plants based on actual rather than projected demand.

He said the company has adopted this strategy since inception so that the investments are done prudently, thus enhancing the financial status of the company and putting it on par with international companies in the domain of district cooling.
Bin Shafar added: “The decision of increasing the number of plants is based on the actual demand from customers for district cooling, driven by the actual consumption instead of anticipated consumption.”

He added: “Inspite of the 60 percent increase in the number of customers (16,000 by the end of this year), we plan to take a cautious approach. Our strategy is simple, we build permanent, semi permanent and temporary plants to ensure that our supplies meet the demand in the most feasible way possible in the short and long run.”
Empower increases its plants to meet the increased demand for district cooling systems as the main alternative to the traditional air conditioning systems in Dubai. This technology leads to energy saving and environment conservation, as well as lowering operations and maintenance costs.

The increase in the consumption of district cooling provided by EMPOWER has reached 45 percent, while the number of plants belonging to the company increased by 37 percent in 2010. The actual consumption for district cooling has increased remarkably due to the growth in the number of residential units that has entered into this service in projects served by the company like in Business Bay and the entire residential units of Mirdif.

Empower's cooling plants has increased to 29, including news ones in places like DIFC, Dubai healthcare City, Jumeirah Beach Residence and Business Bay.
Empower's district cooling systems provide effective and efficient means of air conditioning. Water is cooled in central plants and distributed through a network of piping systems to individual customer buildings. District cooling achieves economies of scale by using centralised plants instead of individual cooling units in each building.

Empower records 37 percent increase in district cooling plants in 2010

Empower records 37 percent increase in district cooling plants in 2010

Bin Shafar stresses the importance of investing in district cooling sector to reduce energy consumption in the UAE

Dubai, UAE, 7th November 2010: Empower has revealed that the number of its cooling plants has risen to 37, compared to 27 in 2009, an increase of 37 per cent.
Ahmed Bin Shafar, CEO of Empower, said: "The increase in number of plants was a response to the expanding operation plans of Empower and to cope up with the huge demand on the use of district cooling as an alternative solution to the conventional air conditioning systems.”

"The increase in the consumption of district cooling shows that Dubai is becoming more aware of the importance of using district cooling system and its instrumental role in saving energy and conserving the environment, as well as lowering operations and maintenance costs," he added.

Empower increased the number of its work stations to boost the use of district cooling systems which is ideal in reducing carbon footprint.
Bin Shafar added: “District cooling systems are better than conventional ones as they make use of the surplus heat in low-cost and effective cooling systems. Also, district cooling systems are environment friendly which save the natural resources.”
Empower's district cooling systems provide effective and efficient means of air conditioning. Water is cooled in central plants and distributed through a network of piping systems to individual customer buildings. District cooling achieves economies of scale by using centralised plants instead of individual cooling units in each building.

About Empower:
Emirates Central Cooling Systems Corporation (Empower) is a joint venture between Dubai Technology and Media Free Zone (TECOM) Investments and Dubai Electricity and Water Authority (DEWA), created to provide energy-efficient district cooling services to large-scale real estate developments. Empower plans to diversify into other energy efficiency and conservation services. The centralised system results in reduced capital and operating costs, thus reducing air-conditioning set-up and energy costs per building. Empower is set to become one of the largest district cooling companies in the region.