What is a Designated Establishment?
Designated Establishments or DEs refers to private entities in the commercial, industrial, transport, power, agriculture, public works, and other sectors identified as energy-intensive industries.
The Classification for designated establishment shall be based on the annual energy consumption threshold expressed in kWh equivalent (for this purpose DOE will use kWhe) as the standard unit of energy. During normal business operation, industrial, commercial and transport establishments may be using a mixed source of energy, and therefore all of these energy sources will be converted and expressed into only one standard unit of energy which is kWhe.
The classification of DEs shall be based on the following thresholds:
Classification of Designated Establishments | Annual Energy Consumption threshold for the Previous Year |
---|---|
Other Designated Establishment | 100,000 kWh but less than 500,000 kWh |
Type 1 Designated Establishment | 500,001 kWh to 4,000,000 kWh |
Type 2 Designated Establishment | More than 4,000,001 kWh and higher |