District Cooling Supply Code

Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

District Cooling Supply Code

(Compliance guidelines)

)43/1( 001 - ‫هـ خ و – ف ن‬

ERD - TA – 001 (V1/43)

1
 ‫‪District Cooling Supply Code‬‬
‫‪Date :‬‬
‫)‪(Compliance guidelines‬‬
‫هـ خ و – ف ن – ‪)43/1( 001‬‬
‫)‪Version (1‬‬
‫)‪ERD - TA – 001 (V1/43‬‬

‫مرجعية هذه الوثيقة‬

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

‫الربيد اإلليكرتوني ‪Technicala.dept@wera.gov.sa :‬‬

‫هاتف ‪00966112019112 :‬‬

‫فاكس ‪00966112019113 :‬‬

‫دورة حتديث هذه الوثيقة ‪:‬‬

‫يتم حتديث هذا الدليل حسب ما تقتضي احلاجة‪.‬‬

‫لغة الوثيقة ‪:‬‬

‫مت إعداد هذه الوثيقة باللغة اإلجنليزية‬

‫حقوق النسخ والنشر حمفوظة هليئة تنظيم املياه والكهرباء‬

‫‪2‬‬
 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

Table of Contents

1. Introduction ........................................................................................................................... 4

2. Objectives ............................................................................................................................... 4

3. Overview ................................................................................................................................. 4

4. Compliance elements ............................................................................................................. 5

5. Derogation requests ............................................................................................................... 6

6. WERA supervision and assessment ..................................................................................... 6

6.1 Assessment objectives…..……………………………………………………….………..7
6.2 Roles…………………………...…………………………………………………………..7
6.3 Assessment methodology………………...……………………………………………….8
6.4 Process review scoring…………………………..………………………………………..8
6.5 Assessment report……………………………..……………………………………..….10

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

1. Introduction

The District Cooling Supply Code (DCSC) has been officially approved by the Board
of Directors of the Water and Electricity Regulatory Authority (WERA) (Resolution
No. 39/43/6 dated 03/11/1439 AH).

The code is one of the regulatory tools that aim to ensure district cooling services are
provided in a safe, efficient, and reliable manner. It includes the rights and obligations
of both Licensees1 and Consumers2, including operational performance requirements
and technical delivery conditions, as well as specifications and standards for reading
meters, billing, and payment.

2. Objectives

These Compliance Guidelines are intended to:

 Improve compliance with the DCSC by the Licensees and the Consumers.

 Improve the effectiveness of DCSC compliance monitoring by Licensees.

3. Overview

The DCSC sets forth the following for the provision of a District Cooling Service in a
defined District Cooling Supply Area:

(a) The minimum performance standards to be met by the Licensees and the
Consumers when supplying the service.

(b) The rights and obligations of Licensees and Consumers.

(c) The technical requirements and connection arrangements for the supply.

1
Licensee: an entity granted the right to supply District Cooling Services within a defined District Cooling Supply Area.
2
Consumer: a person with a subsisting supply agreement with a Licensee.

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

This guidance document clarifies the most important obligations of the parties as set
out in the DCSC:

 Licensees are responsible for monitoring compliance with the DCSC.

 WERA is responsible for supervising Licensees compliance with the DCSC.

This includes reporting an annual analysis of compliance, reviewing and
updating these DCSC Compliance Guidelines, and reviewing all Derogation
requests.

4. Compliance elements

WERA has developed a set of elements for monitoring Licensee compliance with the
DCSC. The elements are defined in Table 1 and are subject to amendment as needed.

Table 1: Elements for monitoring DCSC compliance.

Reference Reporting
# Element Description Responsible Monitoring Mechanism
(DCSC) Period

1 Supply Number of cases 3.1.1 Quarterly Licensee Licensee shall record the
temperature where the Licensee cases when the supply
did not supply temperature is out of
chilled water within specification (within 6°C ±
6°C ± 0.5°C under 0.5°C under Normal
Normal Operating Operating Conditions).
Conditions.

2 Return Number of cases 3.1.2 Quarterly Consumer Licensee shall record the
temperature where the Consumer cases when the return
did not return the temperature from the
chilled water at Consumer side is out of
14°C or higher. specification (14°C or
higher).

3 System Number of cases of 3.2.3 Quarterly Licensee Licensee shall record the
interruptions planned cases when planned

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

interruptions where interruptions occurred

the Licensee did not without giving the
give the Consumer Consumer at least 14 days
at least 14 days prior written notice to prior to the
written notice interruptions.
stating the date(s) on
which the planned
interruptions would
occur and the
duration of the
planned interruption.

4 Billing Number of cases 7.1 Quarterly Licensee Licensee shall record the
where the Licensee cases when
failed to issue monthly/quarterly invoices
invoices to the to the Consumer were not
Consumer at least issued in accordance with
monthly/quarterly in the agreed schedule.
accordance with its
published tariffs.

5. Derogation requests

In accordance with Section 1.6 of the DCSC, WERA is responsible for Derogation
requests. WERA may grant a Derogation or may, if necessary, consult with the
Consumer concerned. (The Derogation application form is shown in Appendix A).

6. WERA supervision and assessment

Compliance to the DCSC operates under the overall supervision of WERA. Consumers
and Licensees shall make every effort to comply with the DCSC. Licensees shall
monitor and record compliance according to the compliance elements and submit
quarterly reports detailing case of noncompliance to WERA. After reviewing the

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

reports, WERA shall conduct an internal analysis, and provide recommendations and
necessary actions to be taken.

6.1 Assessment objectives

The assessment objectives are twofold:

(1) To ensure compliance monitoring elements reported by Licensees to WERA

are sufficiently accurate. To achieve this, WERA shall perform assessments of
both the data collection processes and the actual data collected.

(2) To provide independent feedback to Licensees so that they can continually

improve their processes and levels of compliance.

6.2 Roles

Table 2 provides an outline of the roles played by WERA and Licensees when
conducting an assessment.

Table 2: Outline of assessment roles for WERA and Licensees.

WERA Licensee

 Determines assessment scope.  Provides information to WERA.

 Investigates Licensee operations and  Provides access and necessary cooperation

systems. to conduct assessment.

 Assesses quality of data submitted to  Permits WERA to conduct inspections and

WERA. investigations relevant to data validation
process.

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

6.3 Assessment methodology

Compliance elements are assessed in two stages:

(1) A Process Review focuses on how data about compliance elements are
collected. This stage aims to provide a qualitative measure of the robustness of
the management processes implemented by the Licensee. The Process Review
is explained in more detail in section 6.4.

(2) A Data Validation provides quality assessment of the data. The aim of this stage
is to verify whether data submitted by the Licensee are correct.

6.4 Process review scoring

During the Process Review, WERA critically assesses how robustly and consistently
Licensee management systems are implemented against six criteria across three
capacities.

(1) Organizational structure and competencies include (i) position and roles,
and (ii) competencies.

(2) Implementation methods includes (iii) information systems and process flow,
(iv) data transfer, and (v) data trails.

(3) Calculating compliance elements includes (vi) guidance on checks and

reviews.

WERA shall enumerate Licensee implementation of these criteria against the

requirements detailed in Table 3. Each criterion is scored on a symmetrical Likert scale
(bad = 1, poor = 2, acceptable = 3, good = 4, excellent = 5). Scores are summed and
reported with critical comments and required action using Process Review scoring form
in Appendix B.

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

Table 3: Criteria for Process Reviews.

Organizational Structure and Competencies

(i) Position and roles: The data management process for each element comprises several steps
including ● raw data collection, ● checking data correctness, ● collection and storage of
supporting data and information, ● generation of final data, ● data transfer to relevant
templates, and ● submission of final data to WERA. Roles and responsibilities for each of
these steps must be clearly described, and senior management accountability must also be
demonstrated.

(ii) Competencies needed: The competencies needed to process each compliance element
must be analyzed. Personnel competencies must be assessed, and training programs
implemented as required.

Implementation methods

(iii) Information systems and process flow: Suitable IT systems to collect and record data
must be available. Information/process flow diagrams, describing the entire assessment
process, from raw data to reported totals, must be developed.

(iv) Data transfer: Where data is transferred between or within systems/spreadsheets, the
method of transfer (automatic/manual) must be highlighted. This is particularly important
when data are transferred from individual departments to centralized data facilities for
analysis and reporting.

(v) Data trails: Requirements for documented data trails must be defined, implemented, and
all documentation made physically available.

Calculating compliance elements

(vi) Guidance on checks and reviews: Guidance must be provided on when, where, and how
checks and reviews are to be carried out, and what evidence needs to be documented. This
includes spot checks by someone not involved in the calculations, to cover errors in manual
data transfers, changes in assumptions, and the overall reliability of calculation processes.

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

6.5 Assessment report

The assessment concludes with an Annual Assessment Report based on random data
sampling. The report contains the findings of the Process Review and Data Validation,
as well as recommended actions to be completed before the following year’s
assessment. Figure 2 shows the assessment timeline.

January February March June September December

Assessment Prepare the 1st Q Report 2nd Q Report 3rd Q Report 4th Q Report
plan and site assessment
selection report

Figure 2: Assessment timeline. (Q = Quarter)

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

Appendix A

Application form for District Cooling Supply Code derogation

Organization Details:
Name: Department: Location:

Applicant Details:
Submitted by: Date of Submission : Registration No:
Name:

Address:
Signature:

official stamp: P.O. Box …

Tele:
Fax:

Sections/clauses of the District Cooling Supply Code from which derogation is sought:

Reasons/justification for seeking a derogation:

Implications if the request is denied:

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 District Cooling Supply Code
Date :
(Compliance guidelines)
)43/1( 001 – ‫هـ خ و – ف ن‬
Version (1)
ERD - TA – 001 (V1/43)

Appendix B

Process Review scoring form

Score
Assessment Criteria Motivation/ Reason Action Items
(1-5)

1. Position and roles

2. Competencies needed

3. Information systems and process flow

4. Data transfer

5. Data trails

6. Guidance on checks and reviews

Total Score …

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