District Cooling Services Supply Code

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District Cooling Services Supply Code

)39/01 ‫ (ص‬011 - ‫هـ خ و – ف ن‬

ERD - TA – 011 ( V01 /17)


‫‪District Cooling Services Supply‬‬
‫‪Date :11-2017‬‬ ‫‪Code‬‬

‫هـ خ و – ف ن – ‪( 011‬ص‪)39/01‬‬
‫)‪Version (1‬‬
‫) ‪ERD - TA – 011 ( V01/17‬‬

‫املستند النظامي ‪:‬‬


‫قرار جملس إدارة هيئة تنظيم الكهرباء واإلنتاج املزدوج رقم ( ‪ ) 39/43/6‬وتاريخ ‪1439/03/11‬هـ‬

‫مرجعية هذه الوثيقة ‪:‬‬


‫يف حال وجود أي استفسارات أو مالحظات فإن املرجع فيها هي اإلدارة العامة للشؤون الفنية‬

‫الربيد اإلليكرتوني ‪TechnicalA.Dept@ecra.gov.sa :‬‬

‫هاتف ‪00966112019112 :‬‬

‫فاكس ‪00966112019113 :‬‬

‫دورة حتديث هذه الوثيقة ‪:‬‬


‫يتم حتديث هذا الدليل حسب ما تقتضيه احلاجة‪.‬‬

‫لغة الوثيقة ‪:‬‬


‫مت إعداد هذه الوثيقة بالغة اإلجنليزية‬

‫حقوق النسخ والنشر حمفوظة هليئة تنظيم الكهرباء واإلنتاج املزدوج‬

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TABLE OF CONTENTS

1. GENERAL AND ADMINISTRATIVE PROVISIONS


1.1 Purpose of the Code
1.2 Interpretation
1.3 Definitions
1.4 Hierarchy of Documents
1.5 Modifications to this Code
2. GENERAL OBLIGATIONS
2.1 General Obligations of the Licensee
2.2 General Obligations of the Consumer
3. DISTRICT COOLING SERVICE SPECIFICATIONS
3.1 Supply Temperature
3.2 Supply Availability and Reliability
4. APPLICATION FOR SUPPLY CONNECTION
5. TECHNICAL REQUIREMENTS
5.1 Connection Scheme
5.2 Intake Station
5.3 Service Connection Facilities
5.4 Consumer Installation
6. METERING OF SUPPLY
7. BILLING
8. PAYMENT SECURITY AND DEFAULT
9. DISCONNECTION AND DISCONTINUANCE OF SUPPLY
10. CONDITIONS OF SUPPLY

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1. GENERAL AND ADMINISTRATIVE PROVISIONS

1.1 Purpose of this Code


1.1.1 This Code sets forth the following with respect to the District Cooling Service in the defined District
Cooling Supply Area:
(a) The minimum standards of performance in accordance with which the Licensee is required to supply the
service.
(b) The rights and obligations of the Licensee and a Consumer.
(c) The technical requirements and arrangement for supply connection.
1.1.2 This Code applies to the Licensee and the Consumers of the District Cooling Services in the defined
District Cooling Supply Area.

1.2 Interpretation
1.2.1 Unless the context otherwise requires or the term is otherwise defined in this Code, all terms defined in
the Electricity Law shall have the same meaning when used in this Code.
1.2.2 Headings are for convenience only and shall not affect the interpretation of this Code.
1.2.3 A reference in this Code to any statute, subsidiary legislation, proclamation, ordinance, by-law,
resolution, rule, order, supplements, gazette notification or directive includes all statutes, re-enacting,
extending or replacing it.
1.2.4 A reference in this Code to a document or provision of a document includes a modification or
supplement to, or replacement or novation of, that document or that provision of that document, as well as
any exhibit, schedule, appendix or other annexure thereto.
1.2.5 A reference in this Code to a body, whether statutory or not, which ceases to exist or whose functions
are transferred to another body includes a reference to the body which replaces it or which substantially
succeeds to its functions, powers or duties.
1.2.6 A reference in this Code to the word “including” or a grammatical variation thereof means “including
but not limited to”.
1.2.7 Licensees and consumers shall comply with the requirements of relevant legislation or regulations,
which from time to time are issued by ECRA.

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1.3 Definitions

1.3.1 In this Conditions, unless the context otherwise requires:


“Authority” means The Electricity and Cogeneration Regulatory Authority (ECRA).
“Availability of Supply” with respect to any calendar year, means the ratio the hours in that year during which
the Supply is available to the Consumer, bears to the total number of hours in that year.
“Business day” means any day other than a Friday, a Saturday or public holiday.
“Consumer Installation” means the Consumer’s chilled water reticulation system and associated equipment
constructed and installed by the Consumer at the Premises and connected to the secondary side of the Heat
Exchangers.
“Consumer” means a person who has a subsisting Supply Agreement with the Licensee.
“Contract Capacity” means the Supply capacity that the Consumer has requested and the Licensee has
agreed to provide, as stated in the Supply Agreement.
“District Cooling Service” means the supply of chilled water for space cooling by the Licensee at the
Premises.
“District Cooling Supply Area” means the geographic area covered by the contract to provide District Cooling
Services;
“District Cooling System” means the whole of the facility used or operated by the Licensee for or in
connection with the provision of District Cooling Service comprising the district cooling plant(s), the distribution
pipes, Heat Exchangers and other apparatus including metering equipment but excluding the Consumer
Installation.
“Electricity Law” means the Electricity Law (as Issued by Royal Decree No. M / 56 and dated 20 Shawwal
1426 / 22 November 2005).
“Heat Exchanger(s)” means heat transfer equipment installed by the Licensee at the Intake Station.
“Intake Station” means the site within the Premises in which the Heat Exchangers shall be housed.
“Nominal Flow Rate” in respect of any Heat Exchanger means the flow rate of chilled water at the secondary
side of the Heat Exchanger corresponding to the Contract Capacity at a Supply Temperature of 6°C and Return
Temperature of 14°C.
“Normal Operating Conditions” means all of the following conditions:
i) the Consumer’s demand for District Cooling Service is within the Contract Capacity; and
ii) the chilled water flow rate at the secondary side of each Heat Exchanger is greater than 10%, but not more
than 100%, of the Nominal Flow Rate of the Heat Exchanger.
“Normal Usage Hours” means the period from 7am to 7pm every day excluding Fridays and public holidays.
“Parties” means the Service Provider and the Consumer.
“Premises” means the premises within the defined District Cooling Supply Area at which the Licensee has a
Supply Agreement with the Consumer.
“Professional Engineer” means a professional engineer registered in the Kingdom.

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“Return Temperature” means the temperature of the water returning from the Consumer Installation to the
Heat Exchanger, as measured at the secondary inlet of the Heat Exchanger.
“Service Connection Facilities” means the Heat Exchangers, the connection pipes to the district cooling
distribution pipes and associated valves, fittings, meters, monitoring and control devices for the provision of
District Cooling Service at the Premises.
“Licensee” means the entity granted the right to supply DC Services within the defined District Cooling Supply
Area.
“Supply” means the provision of District Cooling Service at the Premises.
“Supply Agreement” means the contract between the Consumer and the Licensee for the provision of District
Cooling Service.
“Supply Temperature” means the temperature of the chilled water as measured at the secondary outlet of
the Heat Exchangers.
“System” means the District Cooling System.

1.4 Hierarchy of Documents


1.4.1 Nothing in this Code shall be construed as affecting the rights and obligations of the Licensee under the
provisions of relevant legislation and, in the event of an inconsistency between the provisions of relevant
legislation and the provisions of these Conditions, the provisions of relevant legislation shall prevail to the
extent of the inconsistency.

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1.5 Modifications to this Code

1.5.1 The Authority may from time to time modify or approve proposed modification to this Code.
1.5.2 The process by which this Code may be modified by the Authority shall be as follows:
a) Before making any modification to this Code, the Authority shall:
i) state that the Authority proposes to make a modification in the manner specified in the notice;
ii) state the reasons why the Authority proposes to make the modification, including whether the need for the
modification was the subject of a prior representation made by a Licensee or third party; and
iii) specify the period from the date of the giving of notice (not being less than 28 days) within which written
representations with respect to the proposed modification may be made.
b) If no written representation is received by the Authority within the period specified in the notice referred to
in section 1.5.2(a) or if all written representations made in response to such notice are subsequently withdrawn,
the Authority may modify this Code as specified in such notice.
c) Where the Authority receives any written representation under section 1.5.2(a), the Authority shall consider
all such representations, as a whole, and may:
i) reject the representations;
ii) amend the proposed modification in accordance with the representations;
iii) withdraw the proposed modification.
d) The Authority shall, before modifying this Code, respond with reasons to all written representations received
in respect of the modification that were not subsequently withdrawn, and advise the outcome of the Authority’s
deliberations in respect of the modification; and
e) A modification to this Code shall not come into force until such time as the Authority has complied with
section 1.5.2(d), where applicable, and 10 business days, or such longer period of time as may be specified
by the Authority, have elapsed since the date on which the Authority gave notice of the modification under
1.5.2(d).
1.5.3 The Process by which the Authority shall consider Licensee’s proposed modification to this Code shall
be as follows:
a) The Licensee shall apply to the Authority of any proposed modification to this Code and shall with the
approval of the Authority consult all its consumers and other persons likely to be affected by the proposed
modification by way of a written notice. The Licensee shall:
i) state that the proposed modification;
ii) state the reasons for the proposed modification, including whether the need for the modification was the
subject of a prior representation made by a consumer or third party; and
iii) specify the period from the date of the giving of notice (not being less than 28 days) within which written
representations with respect to the proposed modification may be made.

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b) The Licensee shall then submit to the Authority the proposed modification to this Code, all the written
representation received and its response and deliberations to all written representation received in respect of
the modification that were subsequently not withdrawnc) The Authority shall consider the Licensee’s
application to modify this Code together with all representations received and the Licensee’s response and
deliberations to the written representations as a whole, and may:
i) reject the proposed modification to this Code;
ii) reject the representations;
iii) direct the Licensee to amend the proposed modification in accordance with the representations;
iv) approve the Licensee’s application to modify this Code.
d) In the event that the Licensee’s proposed modification to this Code is approved by the Authority under
1.5.3(c)(iv), the Licensee shall, before modifying this Code, respond with reasons to all written representations
received in respect of the modification that were not subsequently withdrawn, and advise the outcome of the
Authority’s deliberations in respect of the modification.
e) A modification to this Code shall not come into force until such time as the Licensee has complied with
section 1.5.3(d), where applicable and 10 business days, or such longer period of time as may be specified by
the Authority, have elapsed since the date on which the Licensee gave notice of the modification under
1.5.3(d).
1.5.4 Nothing contained in section 1.5 shall prohibit any other party from notifying the Authority of suggested
Code changes.

1.6 Derogation Process

1.6.1 ECRA\ Technical Affairs Department is the body which may grant a Derogation from the provisions of
the District Cooling Supply Code. In deciding whether to grant a Derogation, ECRA\Technical Affairs
Department may consult with the affected User, as is considered necessary.
1.6.2 The affected User may seek a Derogation from complying with one or more provisions of the District
Cooling Supply Code. The Derogation may be granted by ECRA\Technical Affairs Department to ease
temporary constraints that prevent compliance and necessitate exemption.
1.6.3 Derogations can be provided to existing plant and/or equipment that has not been designed in
accordance with the provisions of this District Cooling Supply Code, and/or to facilitate a smooth transition to
the District Cooling Supply Code from the existing conditions.
1.6.4 A User seeking a Derogation shall submit a written application to ECRA \the Technical Affairs
Department and shall be required to justify its request in terms of both the specific circumstances and expected
duration of the requested Derogation. As a minimum, the application must include the following information:
a) detail of the applicant;
b) relevant provision(s) of the District Cooling Supply Code and the required performance;
c) description of the relevant plant and/or equipment and the nature and extent of non-compliance;
d) description of the proposal for restoring compliance (where applicable) including details of actions to
mitigate risks and restore compliance, including a proposed timetable;
e) description of the reasonable alternative actions that have been considered; and
f) a statement of expected duration of the non-compliance.

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1.6.5 On receipt of any request for a Derogation, ECRA\ the Technical Affairs Department shall promptly
consider such request, by seeking expert advice/opinion on the request, if it considers it necessary,
1.6.6 Technical Affairs Department may consult with any affected User, as it considers appropriate, to seek
clarification or views on the requested Derogation.
1.6.7 ECRA\ Technical Affairs Department shall communicate its final decision to the relevant User.
1.6.8 A Derogation from the District Cooling Supply Code will normally have an expiry date in order to review
its continued need and to assist in monitoring performance towards compliance.
1.6.9 Every Derogation will be entered on a register maintained by Technical Affairs Department for this
purpose
1.6.10 A Derogation granted to the User shall be non-transferable. Therefore, if a non-compliant plant and/or
equipment has its ownership transferred, the new owner will need to seek a new Derogation.

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2. GENERAL OBLIGATIONS

2.1 General Obligations of the Licensee


2.1.1 The Licensee shall, at its own costs, be solely responsible for planning, designing, constructing, installing,
testing, commissioning, operating and maintaining the District Cooling System (“the System”).
2.1.2 The Licensee shall, in committing to provide District Cooling Service to a new consumer, ensure that
there is adequate capacity in the System and the new supply connection will not cause any adverse impact to
existing consumers and the stability, security and reliability of the System.

2.2 General Obligations of the Consumer


2.2.1 The Consumer shall use the District Cooling Service for the purpose of space cooling in accordance to
this Code.
2.2.2 The Consumer shall not install any independent chilled water production facilities in the Premises and
cause such facilities to operate in parallel with the System unless otherwise agreed to in writing by the
Licensee.
2.2.3 The Consumer shall not under any circumstances supply District Cooling Service received from the
Licensee to any building or premises other than the Premises.
2.2.4 The Consumer shall at its own cost make suitable standby arrangements (including the installation of
standby chiller facilities) for the cooling need of the Premises if the operations of the Premises cannot tolerate
any failure, reduction, interruption, variation or inconsistency in the Supply.

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3. DISTRICT COOLING SERVICE OBLIGATIONS

3.1 Supply Temperature


3.1.1 The Licensee shall operate the System and Service Connection Facilities to regulate the Supply
Temperature within 6°C ± 0.5°C under Normal Operating Conditions.
3.1.2 The Consumer shall ensure that the Return Temperature shall be 14°C or higher or such other
Temperature that may be agreed between the Parties.

3.2 Supply Availability and Reliability


3.2.1 Subject to Section 3.2.3, the Supply shall be provided at all times on a 24 hourly basis.
3.2.2 The Licensee shall operate and maintain the System such that the Availability of Supply with respect to
any calendar year shall be at least 99.5%.
3.2.3 The Licensee may schedule interruptions to the provision of District Cooling Service at the Premises for
the purpose of maintenance, repair, connection, disconnection, extension and other work in the System
(“Planned Interruption”) provided that:
(a) Except for operational emergency arising from any fault in the System, the Licensee shall give the
Consumer at least 14 days' prior written notice stating the date(s) on which the Planned Interruption will occur;
the duration of the Planned Interruption;
(b) the Licensee shall to the extent possible, carry out the Planned Interruption outside the Normal Usage
Hours.

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4. APPLICATION FOR SUPPLY CONNECTION

4.1 Any person within the service area applying for supply connection to the System is required to submit a
formal application through a Professional Engineer to the Licensee. The application shall contain the following
information:
(a) Location and type of the development;
(b) Target supply date;
(c) Projected demand growth;
(d) Typical daily load pattern; and
(e) Typical annual usage pattern

4.2 Upon receipt of an application for supply connection, the Licensee:


(a) May require additional information to be submitted by the Applicant;
(b) Shall advise the Applicant of the connection scheme, technical requirements and the indicative connection
charges.
(c) shall use its best endeavour to respond to an application for supply connection within 14 days.

4.3 The Licensee may, as a condition of supply, require the Consumer to commit to a Contract Capacity for
an initial period not exceeding 5 years.

4.4 The Licensee shall endeavour to make supply available upon 12 months of the Consumer accepting the
commercial terms of supply.

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5. TECHNICAL REQUIREMENTS

5.1 Connection Scheme


5.1.1 Heat exchangers are used as interfacing equipment between the System and the Consumer Installation.

5.2 Intake Station


5.2.1 The Consumer shall at its own cost provide and construct the Intake Station in accordance with the plans
and specifications agreed by the Parties. Such plans and specifications shall not be altered without the
agreement in writing of the Parties. The Consumer shall ensure that the Intake Station shall be used for plant
and equipment linked to the provision of District Cooling Service at the Premises.
5.2.2 The Consumer shall at its own cost maintain the Intake Station inclusive of the building structure,
infrastructure, mechanical and electrical services within the Intake Station and general cleanliness of the Intake
Station.

5.3 Service Connection Facilities


5.3.1 The Consumer shall pay for the cost of the Service Connection Facilities. Notwithstanding the payment
by the Consumer, the Service Connection Facilities shall be the property of the Licensee, and the Licensee
shall be solely responsible for the operation, maintenance and repair of the Service Connection Facilities.

5.4 Consumer Installation


5.4.1 The Consumer shall arrange for a Professional Engineer to design and install the Consumer Installation
in accordance to the technical guidance issued by the Licensee and which shall incorporate the following
minimum requirements:
(a) A control arrangement, via a variable flow system or otherwise, to maintain the Return Temperature at or
higher than 14ºC.
(b) A filtration system for the return water to the exchanger with a minimum filtration performance of no more
than 1.5mm. .
(c) A pressure relief device at the interfacing connection set to operate at a pressure at 16 barg or such other
pressures that may be agreed between the Parties.

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6. METERING OF SUPPLY

6.1 The District Cooling Service shall be measured by metering equipment with accuracy within ±3% at the
nominal flow of chilled water. The accuracy of the metering equipment shall be verified at first installation and
subsequently at intervals not exceeding 5 years by an independent testing laboratory.
6.2 The metering equipment shall be supplied, installed and maintained by the Licensee.
6.3 If the Consumer disputes the accuracy of the metering equipment, the Consumer may on payment of a
reasonable fee based on expenses incurred by the Licensee, request the Licensee to have the metering
equipment tested and calibrated by an independent testing agency.
6.4 If, on testing, the metering equipment is found to be inaccurate (within the meaning of subsection 6.1), the
Licensee shall refund the fee stated in subsection 6.3 to the Consumer and cause the metering equipment to
be repaired or replaced. The Licensee shall also make a fair and reasonable assessment of the amount of
District Cooling Service provided to the Consumer during the period when the meter equipment was faulty or
inaccurate by using historical validated data of an equivalent period from the most recent previous like day
(e.g. business day for a business day, Friday for a Friday, Saturday for a Saturday, public holiday for a public
holiday).

7. BILLING

7.1 The Licensee shall invoice its customers at least monthly / quarterly1 in accordance to its published tariffs.
7.2 An invoice to the Consumer shall, at a minimum, include information on the following:
(a) The published tariffs;
(b) Details on Contract Capacity, maximum demand and usage;
(c) Other related charges;
(d) Payment due date;
(e) Contact details of the Licensee for invoice clarification.

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8. PAYMENT SECURITY AND DEFAULT

8.1 Power to Require Security


8.1.1 The Licensee may mitigate the risk of non-payment by the Consumer by requiring the Consumer to
provide reasonable security for the payment to it of all money which may become due, which may include:
(a) Cash deposits;
(b) Bankers’ guarantee; or
(c) A combination of the above.
8.1.2 The maximum amount of security that the Licensee may require from the Consumer shall be based on
the Licensee’s estimate of the financial exposure faced by it.

8.2 Default Process


8.2.1 In the event of a default in the payment by the Consumer, the Licensee shall not realise on any security
held until 8 days have elapsed from the date of notification given pursuant to section 8.2.2.
8.2.2 The Licensee shall, on the business day following a default of payment by the Consumer, notify the
Consumer that payment was not received and to remedy the situation. If the amount owing remains unpaid 16
days after the date of the giving such notice, the Licensee may notify the Consumer that it shall discontinue
the supply of District Cooling Service and subsequently disconnect the supply connection from the System.
8.2.3 The Licensee may charge interest on any overdue payment at such rate stipulated in the Supply
Agreement or, in the absence of such stipulation at a rate as may be approved by the Authority from time to
time.

9. DISCONNECTION AND DISCONTINUANCE OF SUPPLY

9.1 The Licensee shall not disconnect any supply connection or discontinue the supply or District Cooling
Service to any installation except as permitted by, and in accordance with, the Electricity Law, its licence, this
Code or Supply Agreement.
9.2 The Licensee shall report to the Authority any incidence of discontinuance of service, other than on mutual
agreement between the Consumer and Licensee.

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10. CONDITIONS OF SUPPLY

10.1 The Licensee shall develop a Supply Agreement that describes the terms and conditions under which the
District Cooling Service will be provided.
10.2 The Supply Agreement shall comply and be consistent with the Code, and such other requirements as
notified by the Authority to the Licensee.
10.3 The Licensee shall file a copy of its Supply Agreement with the Authority, make its Supply Agreement
available for public inspection and provide a copy of its Supply Agreement to any person who requests it.

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