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Kingdom of Saudi Arabia
Electricity & Cogeneration Regulatory Authority
The Electricity Law's
Implementing Regulations
Related to The Duties of The Authority
Disclaimer: This is a translation of these regulations from the Arabic original. It is provided for the convenience of
non-Arabic speakers. The Arabic text is the official reference and shall govern in case of disagreement
between the English and Arabic versions.
For further information about the Authority please contact :

The Public Relations Department
P.O.Box 4540 Riyadh 11412, Kingdom of Saudi Arabia
Operator: +966 1 201 1900 Tel.: +966 1 201 9040 Fax: +966 1 201 9044 Email : info@ecra.gov.sa
non-Arabic speakers. The Arabic text is the official reference and shall govern in case of disagreement between the
English and Arabic versions.
C Electricity and Co-Generation Regulatory Authority, 2007

King Fahd National Library Cataloging-in-Publication Data
Saudi Arabia Electricity and Cogeneration Regulatory Authority
The Electricity Law Implementing Regulations related to the duties of
Authority, Saudi Arabia.
Electricity and Cogeneration Regulatory Authority, Riyadh, 2007
112 p; 21 x 30 cm
ISBN: 9960 9939 0 6
1- Electricity- Saudi Arabia 2- Electric Utilities- Regulation Saudi
Arabia
1- Title
333, 79309531 dc
1428/ 3666
L.D. No. 1428 / 3666

ISBN: 9960 9939 0 - 6
ALL RIGHTS RESERVED

FIRST EDITION
1428 H. 2007 A.D

The Electricity Law's
Implementing Regulations
Related to The Duties of The Authority
non-Arabic speakers. The Arabic text is the official reference and shall govern in case of disagreement
between the English and Arabic versions.
TABLE OF CONTENTS
TABLE OF CONTENTS
CHAPTER ONE PRELIMINARY PROVISIONS

ARTICLE 1 DEFINITIONS ........................................................................................... 12
ARTICLE 2 INTERPRETIVE PROVISIONS ................................................................ 18
CHAPTER TWO DATA & INFORMATION ...........................................................
ARTICLE 3 SUBMISSION OF INFORMATION TO AUTHORITY .......................... 20
ARTICLE 4 PROVISION OF INFORMATION BY AUTHORITY ............................. 20
CHAPTER THREE LICENSING
PART 1 LICENSING OF ELECTRICITY ACTIVITY
ARTICLE 5 DEFINITION OF ELECTRICITY ACTIVITY ......................................... 26
ARTICLE 6 ELECTRICITY ACTIVITIES EXMEPTED FROM LICENSING OR
28
SOME OF ITS REQUIREMENTS .............................................................

ARTICLE 7 AUTHORIZATION PROCEDURES AND CRITERIA ............................ 29
ARTICLE 8 LICENSING PROCESS AND CRITERIA ................................................ 30
ARTICLE 9 LICENCE RENEWAL, AMENDMENT, SUSPENSION,
32
REVOCATION, AND WITHDRAWAL ...................................................

ARTICLE 10 LICENSING FEES ................................................................................... 34
ARTICLE 11 CONDITIONS OF LICENSING .............................................................. 35
PART 2 CONNECTION
ARTICLE 12 STANDARD CONNECTION OFFERS .................................................. 40
ARTICLE 13 CONNECTION AND USE OF SYSTEM OFFERS ................................ 40

ARTICLE 14 PROVISION OF INFORMATION ON CONNECTION
44
AGREEMENTS ........................................................................................
ARTICLE 15 NON- COMPLIANT CONNECTION OFFERS AND AGREEMENTS 44
PART 3 RELATIONSHIP OF LICENSEES WITH USERS AND CONSUMERS

ARTICLE 16 NO UNDUE DISCRIMINATION ........................................................... 48
ARTICLE 17 AVAILABILITY OF INFORMATION TO CONSUMERS ................... 48
ARTICLE 18 QUALITY OF SERVICE FOR CONSUMERS ....................................... 49
ARTICLE 19 SUSPENSION OR TERMINATION OF SERVICE TO
50
CONSUMERS...........................................................................................
PART 4 ACCESS TO PROPERTY

ARTICLE 20 RIGHT OF ENTRY ON LANDS ............................................................. 52
ARTICLE 21 RIGHTS OF EXPROPRIATION OF LAND ........................................... 52
ARTICLE 22 SITES WITH ENVIRONMENTAL OR HISTORICAL SIGNIFICANCE ..... 53
CHAPTER FOUR TARIFFS

ARTICLE 23 TARIFFS .................................................................................................. 56
CHAPTER FIVE COMPETITION AND ANTI-COMPETITIVE CONDUCT

ARTICLE 24 ANTI-COMPETITIVE PRACTICES ...................................................... 60
ARTICLE 25 REMEDIES FOR ANTI - COMPETITIVE PRACTICES ...................... 61

ARTICLE 26 MERGERS OR ACQUISITIONS ............................................................ 62
CHAPTER SIX RESTRUCTURING OF THE ELECTRICITY INDUSTRY

ARTICLE 27 RESTRUCTURING OF THE ELECTRICITY INDUSTRY .................. 68
CHAPTER SEVEN DISPUTES AND VIOLATIONS

PART 1 DISPUTES & DISPUTE RESOLUTION PROCEDURES
ARTICLE 28 GENERAL................................................................................................. 74
ARTICLE 29 CONSUMER DISPUTES ......................................................................... 76
ARTICLE 30 MEDIATION ............................................................................................ 77
ARTICLE 31 DISPUTE RESOLUTION PROCESS BY THE AUTHORITY .............. 79
ARTICLE 32 EXPLANATORY MEMORANDUM ...................................................... 81
PART 2 ENFORCEMENT ACTION
ARTICLE 33 INTRODUCTION .................................................................................... 84
ARTICLE 34 CONTRAVENTIONS .............................................................................. 84
ARTICLE 35 INVESTIGATIONS OF VIOLATIONS .................................................. 87
PART 3 URGENT ACTIONS

ARTICLE 36 PROCUREMENT OF ADDITIONAL GENERATION CAPACITY...... 92
ARTICLE 37 CONTINUITY OF SERVICE .................................................................. 92
ARTICLE 38 APPLICATION OF CUSTODIANSHIP ACTION .................................. 93
CHAPTER EIGHT FINAL PROVISIONS

ARTICLE 39 POWERS .................................................................................................. 96
ARTICLE 40 EFFECTIVE DATE OF THE IMPLEMENTING REGULATIONS ....... 96
ARTICLE 41 AMENDMENTS ...................................................................................... 96
ANNEX 1
RULES AND PROCEDURES OF THE ELECTRICITY INDUSTRY
DISPUTES RESOLUTION COMMITTEE........................................................................ 98
ANNEX 2
RULES AND PROCEDURES FOR APPLICATION OF CUSTODIANSHIP .................... 106
ARTICLE 1 - DEFINITIONS
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1.1
The terms defined in the Electricity Law shall have the same meaning in these
Implementing Regulations, unless the context otherwise requires. For ease of
reference, these are included in the list of definitions below and are marked with an
asterisk (*).
1.2
The following words and expressions, when used in these Implementing Regulations,
shall have the corresponding meanings assigned to them, unless the context otherwise
requires:
Ministry*
The Ministry of Water and Electricity.
Minister*
The Minister of Water & Electricity.
Authority*
The Electricity & Cogeneration Regulatory Authority.
Governor
Governor of the Authority
Board*
The Board of directors of the Authority.
The Law
The Electricity Law issued under the Royal Decree No. (M/56)
dated 20 Shawal 1426H.
The Charter
Founding Charter of the Electricity & Cogeneration Regulatory

Authority.
Person*
Natural or juridical person.
Cogeneration *
The simultaneous production of electricity and desalinated water, or

steam used in other production processes, or both.
Electricity Industry*
Electricity services that Persons undertake or intend to undertake,

including electricity generation, cogeneration, and the transmission
of electricity, its distribution, supply and trading.
Electricity Activity*
Any of the activities mentioned in the definition of Electricity

Industry.
Dominant Position*
Having the ability to influence the fairness of decision-making or

legitimate competition.
Consumer*
Any Person supplied with electricity services for his own

consumption.
Licence*
An authorization granted by the Authority to carry out an Electricity

Activity pursuant to the Law, its Implementing Regulations and
the Authoritys Charter.
Licensee*
Every Person holding a valid Licence issued by the Authority

authorizing him to carry out an Electricity Activity.
Trading*
The sale, purchase, import or export of a product or service included

in an Electricity Activity.
Tariff*
The approved monetary charge for the provision of a service or

product included in Electricity Activities.
Price*
Monetary or in-kind charge agreed upon between two or more

Persons for the provision of a service or product included in
Electricity Activities.
Electricity Market*
The circumstance in which sale and purchase of electricity are

subjected to free market factors where the Price is governed by the
law of supply and demand.
Merger or
Acquisition
The merger, acquisition or establishment, direct or indirect, by one or

more Licensees, whether by purchase of shares, purchase or lease of
assets, amalgamation, combination or otherwise, to have Control over
a significant interest in the whole or a material part of a business of a
Licensee.
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14
Charging Statement
An explanatory statement approved by the Board setting out the basis

and criteria on which the costs of connection to, and use of the
network are based by the Licensee or the Consumer as stated in
Article (13.4).
Authorization
Means a statement given by the Authority in relation to preparatory

work (including the developing of plans and carrying out of studies)
prior to the commencement of the construction works for the
Electricity Activity.
Mediation
A process in which a representative of the Authority conducts

discussions among the parties to a dispute designed to enable them to
reach a mutually acceptable agreement, and the term Mediate shall
be construed accordingly.
Cogeneration
Licence
A Licence issued by the Authority pursuant to Article 5.1.2 and a

"Cogeneration Licensee" shall be a Person holding a Cogeneration
Licence.
Retail Licence
A Licence issued by the Authority pursuant to Article 5.1.6 for the

sale of electricity to Consumers. A Retail Licensee shall be a
Person holding a Retail Licence.
Distribution Licence
A Licence issued by the Authority pursuant to Article 5.1.4. A

Distribution Licensee shall be a Person holding a Distribution
Licence.
Generation Licence

Generation Licensee shall be a Person holding a Generation
Licence.
Trading Licence
A Licence issued by the Authority pursuant to Article 5.1.5 for the

Trading of electricity or Cogeneration products. A Trading
Licensee shall be a Person holding a Trading Licence.
Transmission
Licence

Transmission Licensee shall be a Person holding a
Transmission Licence.
National Electricity
Registry
The registry that includes all information, Decisions, and Licences

as described in Article 4.
Control
Control in any manner that results in control in fact, whether directly

through the ownership of shares or other securities or indirectly
through an agreement, arrangement or otherwise.
Standard Offer
An offer prepared by any Network Licensee, concerning the

connection to and the use of the network by the Licensees and
Large Consumers as approved by the Authority, as stated in
Article (12.1).
Decision
An instrument in writing made or issued pursuant to the Law, the

Charter, these Implementing Regulations, or the Rules and
Procedures by any of the Board, the Governor, or the Committee
or an officer of the Authority authorized for that purpose.
Rules and
Procedures
Further regulations adopted and updated from time to time by the

Authority, in accordance with Article (4.1) of the Law and these
Implementing Regulations, to be approved by the Governor.
These regulations provide further or detailed rules relating to the
provisions of the Law, these Implementing Regulations, Licence
procedures or matters incidental to the foregoing and includes any
other legal instrument that is enforceable by the Authority.
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Distribution Code
The code established by the Distribution Licensee for the operation

and maintenance of the Distribution System with the approval of
the Authority and covering all material technical aspects relating to
connections to and the operation and use of the Distribution System
and all associated installations required for the operation of the
Distribution System.
Transmission Code
The code established by the Transmission Licensee for the

operation and maintenance of the Transmission System with the
approval of the Authority and covering all material technical aspects
relating to metering, connections to and the operation and use of the
Transmission System and all associated installations required for the
operation of the Transmission System and including all information
requirements relating to planning.
The Committee
The dispute resolution committee for the Electricity Industry,

established pursuant to Article (13) of the Law.
Generating Station
A station comprising of one or more units for:

(a) The generation of electricity.
(b) Cogeneration.
including buildings, plant and machinery, the site used for the
Generating Station and its associated equipment or structures and all
other associated equipment or structures used for that purpose.
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Violation
A violation as described in Article (14) of the Law.
Network Licensee
A Transmission Licensee or a Distribution Licensee, as the case

may be.
Large Consumer
A Consumer which has electricity consumption above such threshold

as may be specified from time to time by the Authority in the Rules
and Procedures.
Distribution System
Subject to the specific provisions of the relevant Distribution

Licence, a system consisting of cables, overhead lines, electrical
apparatus having such design voltage(s) as may be specified in the
relevant Distribution Licence used for the distribution of electricity
from connection points with the Transmission System or with
Generating Stations to points of delivery to Consumers or other
Distribution Systems and includes any electrical installations and
meters owned or operated in connection with the distribution of
electricity, but shall not include any part of a Transmission System.
Transmission System Subject to the specific provisions of the relevant Transmission

Licence, a system consisting of high voltage electricity substations,
lines and underground cables having such design voltage(s) as may be
specified in the relevant Transmission Licence, for the conveyance
of electricity from a Generating Station to a transmission substation
or to another Generating Station or between two transmission
substations or to or from any external high voltage interconnection,
and includes any transmission lines, transformers, switchgear and
other equipment necessary for and used in connection with such
electrical equipment up to the interconnection with a Distribution
System, but shall not include any part of a Distribution System.
Affiliate
In relation to any entity, a Person who Controls, or who is

Controlled by the entity, or any other Person who is Controlled by
the Person who Controls the entity.
Day
Any day of the week including vacation days, and if the deadline
happened to be an official vacation, it shall be extended to the first
working day thereafter .
Business Day
Any day on which Government offices are officially open for business
in the Kingdom.
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ARTICLE 2 - INTERPRETIVE PROVISIONS

2.1
Definition of class of persons referenced: Where the Law, these Implementing Regulations
or the Rules and Procedures require or prohibit an activity by a Person, the
Authority may issue a Decision defining Persons related to that Person or associated
entities to that Person to which such requirement or prohibition shall apply either
generally or in relation to a specific situation.
2.2
Hierarchy of documents: :
2.3
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2.2.1
In the event of conflict between these Implementing Regulations and the

Law, the Law shall prevail over the Implementing Regulations;
2.2.2
In the event of conflict between these Implementing Regulations and the

Rules and Procedures these Implementing Regulations shall prevail over
the Rules and Procedures; and
2.2.3
In the event of conflict between the Implementing Regulations and the

conditions of any Licences, unless specifically provided for in the
Implementing Regulations, the Implementing Regulations shall prevail
over the conditions of Licences.
A reference in these Implementing Regulations to an Article or a Chapter is, unless

the context otherwise requires, a reference to an article or chapter of these
Implementing Regulations.
CHAPTER TWO DATA AND INFORMATION
CHAPTER TWO DATA AND INFORMATION
ARTICLE 3 - SUBMISSION OF INFORMATION TO AUTHORITY

3.1
Requirement to provide information: Where the Authority believes that a Licensee has
information that the Authority considers necessary for the administration of the Law
and these Implementing Regulations, the Authority may require that Licensee to
submit the information to the Authority in accordance with Article 3.2.
3.2
Compliance by Licensees: Licensees shall comply with requests for information by the
Authority pursuant to this Article 3 within such reasonable time period as specified by
the Authority. Where the Licensee cannot provide the information as requested,
within the time period specified, or in the form and manner specified, it shall immediately
submit to the Authority a response stating why the information cannot be provided and
what alternative information is available that may meet the Authoritys requirements.
The Authority may:
3.2.1 accept the alternative information stated in the response and may reserve the right
to require the Licensee to provide the information originally requested at a later
date; or
3.2.2 reject the explanation for non-availability of information in the response and
require the original information to be provided within the original period or such
further time period as may be stated.
3.3
Use of information: The Authority may use any information received by it in carrying out
its functions.
ARTICLE 4 - PROVISION OF INFORMATION BY AUTHORITY

4.1
Keeping of register: The Authority shall maintain a National Electricity Registry. The
National Electricity Registry shall contain:
4.1.1 the full text of all Licences;
4.1.2 a record of Decisions;
4.1.3 the full text of all codes and standards approved by the Board, and amendments to
such codes and standards from time to time;
20
4.1.4 standard connection offers and standard connection agreements approved by the
Authority;
4.1.5 current licence fees payable to the Authority pursuant to the Law and the
Charter and these Implementing Regulations;
4.1.6 electricity and Cogeneration capacities of Generating Stations in the Kingdom;
4.1.7 the installed capacity of the Transmission System(s) and Distribution Systems
operated by Licensees in the Kingdom;
4.1.8 updated information on system expansion plans and demand forecast information
submitted to the Authority by Licensees pursuant to the conditions of their
Licences; and
4.1.9 any other information the Authority deems appropriate.
4.2
Exclusion of entries: The Authority may exclude an entry from the National Electricity
Registry where in its opinion inclusion of the entry would be against the public interest
or otherwise be contrary to the objectives of the Law and shall exclude information
provided to it which is confidential in accordance with Article 4.7.
4.3
Inspection of register: The list of contents of the National Electricity Registry shall be
made available to the public by the Authority. Any Person may inspect the list of
contents and request copies of items on, or extracts from, the register during the times,
and subject to payment of the fees, specified by the Authority.
4.4
Availability of Licences: Licences shall be in writing and, subject to Article 4.7, shall be placed
by the Authority on the National Electricity Registry and may be made available on the
Authoritys website. Licence application forms shall also be available on the Authoritys
website. There shall be no requirement under this Article 4.4 for documents that may be
referenced in Licences to be placed on the National Electricity Registry.
4.5
Provision of reasons for Decisions: The Authority shall issue written justifications in respect of
the following:
4.5.1 its Decision to grant, exempt or deny any Person a Licence;
21
4.5.2 any Decisions affecting the existing rights of any Person, if the affected Person
requests such written reasons;
4.5.3 any Decision as the Authority deems necessary.
4.6
Determination of facts: The Authority may, in exercising its functions and performing its
duties under any provision of the Law and these Implementing Regulations, assess the
evidence and prepare a statement of its findings of the facts of the matter under
consideration. The Authority may:
4.6.1 update such statement of facts;
4.6.2 rely on such statement of facts in issuing any Decisions, including in determining
whether there has been a Violation of the Law or the Charter, or the
Implementing Regulations or the Rules and Procedures; and
4.6.3 provide such statement of facts to the Committee to assist in the consideration of
any dispute.
The Authority may, where it considers appropriate, make such statement publicly available.
4.7
Confidential information: The Authority may not make information available to third parties
or to the public where the provider of the information has clearly marked such
information as confidential, except where such information:
4.7.1 is or becomes generally available to the public otherwise than through
contravention of this Article 4.7;
4.7.2 is already known by the Authority or provided to the Authority (previously or
subsequently) without being marked confidential;
4.7.3 is required by law to be disclosed; or
4.7.4 is disclosed to the agents or advisers of the Authority, provided that such agents
or advisers are subject to an obligation to maintain the confidentiality of such
information.
The Authority may make all other information publicly available and, for the avoidance of
22
doubt, the contents of a Licence granted by the Authority may not be classified as confidential
information pursuant to this Article 4.7.
4.8
Making information publicly available: Where these Implementing Regulations or the

Rules and Procedures require the Authority to make any information available to the
public, such obligation shall:
4.8.1 be subject to the confidentiality restrictions set out in Article 4.7; and
4.8.2 be deemed to have been fulfilled where the information is:
(a)
made available for inspection at the Authoritys offices, library, notice board
or other publicly designated locations by the Authority for such inspection
purpose; or is made available to the public on the Authoritys official website, newsletters or any other form of publication; or
(b) published in the Official Gazette in accordance with the regulations

governing publication in the Official Gazette.
4.9
Third party experts: The Authority may utilise such third party consultants and experts as
it considers appropriate in carrying out its functions and may make information available
to such third party consultants and experts, provided that confidential information shall
be provided only where the third party is subject to a duty to keep such information
confidential.
4.10
Notices: Notices to be given by the Authority pursuant to these Implementing

Regulations or the Rules and Procedures may be given by e-mail, unless otherwise
specified.
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24

ARTICLE 5 - DEFINITION OF ELECTRICITY ACTIVITY

5.1
Article
5.1.1
5.1.2
5.1.3
5.1.4
26
Definition of Electricity Activity: Pursuant to Article (5) of the Law, and subject to Articles 6
and 7 of these Implementing Regulations, the following shall each be an Electricity
Activity and shall only be carried out under and in accordance with the corresponding
Licence granted by the Authority:
Licence
required
(a) developing or extending the capacity Generation
of a Generating Station for the Licence
purposes of generation of electricity at
such Generating Station;
(b) generation of electricity at a Generation
Generating Station.
Licence
(a) developing or extending the capacity Cogeneration
of a Generating Station for Licence
Cogeneration for the purposes of
Cogeneration at such Generating
Station;
(b) Cogeneration at a Generating Cogeneration
Station.
Licence
(a) developing or extending any part of Transmission
a Transmission System
Licence
(b) transmission of electricity over a Transmission
Transmission System.
Licence
Electricity Activity
(a) developing any part of a

Distribution System; or
(b) distribution of electricity over a
Distribution System for the purpose
of enabling a supply to be given to any
Consumer, including sale of electricity
to Consumers within the authorized
area of the Distribution Licence.
Distribution
Licence
Distribution
Licence
Date Licence Required

From commencement of
construction works.
Throughout the period of
generation of electricity.
construction works.

cogeneration.
construction works.
transmission of electricity.
construction works.
distribution of electricity.
Article
5.1.5
Licence
required
Trading of electricity or Co- Trading
generation products either to other Licence
Trading Licensees or to Retail
Licensees, or to Distribution
Licensees where they sell such
electricity to Consumers within their
authorized areas.
Electricity Activity
5.1.6
Sale of electricity to Consumers.
5.1.7
Preparatory work
developing of plans
out of studies)
commencement or
5.2
Retail Licence
(including the Authorization

and the carrying under Article
prior to the 7
extension of an
Date Licence Required

Trading activity.

Retail activity.
From the date of
commencement of such
preparatory work up to the
date of commencement of
construction activity.
Changes to licensable activities: The Authority may, by Decision of the Board from time to
time, provide that specified activities in the Electricity Industry shall become, or cease
to be, Electricity Activities requiring a Licence for the purposes of the definition of
Electricity Activity in Article 5.1 and may by Decision of the Board establish new
types of Licences or amend the types or the scope of Licences set out in Article 5.1. A
Decision under this Article 5.2:
5.2.1 shall be made following consultation by the Authority with such Persons who will
be affected by the Decision, as the Authority considers appropriate; and
5.2.2 may provide for necessary consequential changes to these Implementing
Regulations, the Rules and Procedures, Licences and other Electricity
Industry documentation approved by the Authority.
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6.
ARTICLE 6 - ELECTRICITY ACTIVITIES EXEMPTED FROM LICENSING OR SOME OF

ITS REQUIREMENTS
6.1
Exemption from Generation/Cogeneration Licence: A Licence shall not be required for the
Electricity Activities specified in Articles 5.1.1 or 5.1.2 where the Generating Station
carrying out the Electricity Activity that is not connected to a Transmission System or
Distribution System other than the systems exempted from Licensing in accordance
with Article 6.2 - and the whole of electricity or Cogeneration products generated or
produced at the Generating Station are consumed (or, in the case of a Generating
Station being constructed, intended to be consumed) solely by the owner of the
Generating Station and its affiliates.
6.2
Exemption from Transmission/Distribution Licence: A Licence shall not be required for the
Electricity Activities specified in Articles 5.1.3 or 5.1.4 where the transmission or
distribution electrical lines and facilities used for carrying out the Electricity Activity are
not connected to another Transmission System or Distribution System and the
electrical energy transmitted is consumed solely by the owner of the electrical lines and
facilities and its affiliates.
6.3
Small Generation/Cogeneration Station Licence: Where not exempted by Article 6.1,

generation of electricity or the production of Cogeneration products at a Generating
Station with a name plate rated capacity not exceeding 30MW is hereby granted a small
generation or Cogeneration (as appropriate) Licence subject to the conditions in Article
6.4. The holder of a small generation or Cogeneration Licence shall not be required to
pay the annual Licence fees to the Authority under Article 10.
6.4
Persons granted a small generation or Cogeneration Licence pursuant to Article 6.3

shall:
6.4.1 provide to the Authority, in such manner and at such times as the Authority may
direct, such information as the Authority may consider necessary for the purposes
of performing its obligations under the Law; and
6.4.2 comply with all of the applicable Electricity Industry's standards and codes, as
provided in the Rules and Procedures.
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7. ARTICLE 7 - AUTHORIZATION PROCEDURES AND CRITERIA

7.1
Each Person proposing to carry out preparatory work (including the developing of plans
and the carrying out of studies) to commence Electricity Activities would require a
further Licence to undertake such activities, shall apply for a statement from the
Authority to proceed with the planning of the Electricity Activities (Authorization)
from the Authority in accordance with this Article 7.
7.2
An applicant for an Authorization shall complete the relevant application form available
at the Authoritys offices or on its website, as modified from time to time, which shall
include the following information:
7.2.1 the name and address of the applicant;
7.2.2 the proposed capacity of the Electricity Activity and its proposed connection
points to the network (if any); and
7.2.3 the proposed location and date for commencement of construction of the
7.3
The Authority shall issue an Authorization within ten (10) Business Days of receipt of
a duly completed application form and required attachments.
7.4
An Authorization under this Article 7 shall be granted subject to such conditions as the
Authority considers appropriate, and may include the following requirements:
7.4.1 provide information to the Authority on a periodic or other basis on progress of
planned Electricity Activity;
7.4.2 notify the Authority of any changes in the proposed capacity of the Electricity
Activity; and
7.4.3 apply for and obtain a Licence prior to commencement of construction of the
7.5
The Authority shall notify an applicant for an Authorization in the event of an

unsuccessful application and provide the applicant with reasons for the refusal on
request.
29
7.6
An Authorization shall not:

7.6.1 grant any permission or licence for the construction or operation of the proposed
Electricity Activity subject of the Authorization unless the Authorization holder
is granted a Licence to carry out the Electricity Activity from the Authority;
7.6.2 limit in any way whatsoever (whether in relation to the activity, time or location)
the Authoritys rights to grant similar Authorizations to other applicants for the
same Electricity Activity at the same time and the same locations.
ARTICLE 8 - LICENSING PROCESS AND CRITERIA

8.1
Application procedure: Each applicant for a Licence shall obtain from the Authority and
complete the relevant licence application form and its associated appendixes, which may
include a requirement to provide the following information:
8.1.1 the name and address of the applicant;
8.1.2 a description of the specific type of Electricity Activities (for which the Licence
is sought) that the applicant proposes to conduct, the geographic area (where
appropriate) that the Electricity Activity would cover, and details of all facilities at
which the Electricity Activities are to be performed under the proposed Licence;
8.1.3 evidence as specified by the Authority that the applicant has the financial capability
to carry out the Electricity Activities for which the Licence is sought and a
statement by the applicant that it would be able to finance the activities if it were to
be granted a Licence;
8.1.4 evidence as specified by the Authority that the applicant has the technical
capability and experience or has access to the technical capability and experience to
carry out the Electricity Activities for which the Licence is sought;
8.1.5 evidence as specified by the Authority that the applicants proposed and existing
facilities, equipment, installations, or plant necessary for performing the Electricity
Activities for which the Licence is sought are consistent with the objectives of the
Law (including Article (2.7) of the Law) and satisfy relevant technical, health,
safety and environmental protection regulations;
30
8.1.6 disclosure of any ownership interest of such applicant in a Licensee or another

applicant for a Licence above such threshold as the Authority may from time to
time specify;
8.1.7 with the exception of the Electricity Activities exempted from licensing or some
of its requirements pursuant to Article 6, the names of the executives responsible
for any Electricity Activity shall be submitted to the Authority, which may reject
the application in case it objects to any one of them. The Authority may also object
to any of the named executives during the validity of the licence, and the
licensee's non-compliance with the Authority's decision in this regard shall be
considered a Violation of the licence conditions.
8.1.8 such further information as is specified in the Rules and Procedures as made
available on the Authoritys website.
The applicant shall also provide all information the Authority may reasonably request for proper
consideration of the application.
8.2
Application fee: The applicant shall pay the application processing fee for the type of
Licence applied for as prescribed by the Authority in the Rules and Procedures or as
made available on the Authoritys website.
8.3
Acknowledgement of licence application: The Authority will acknowledge receipt of each

Licence application within ten (10) Business Days of receipt of such application.
8.4
Further information: Where the Authority requires further information from the applicant
or third parties to assess whether the applicant meets the required conditions for grant of
a Licence, it shall notify the applicant within twenty (20) Business Days of the
application (or such longer period as the Authority considers reasonable in the
circumstances) and the following shall apply:
8.4.1 the notice shall specify any information required from the Licensee and the time
period within which such information must be provided and a date by which the
Authority intends to make a final Decision on the application;
8.4.2 the Authority shall also notify such third parties as it considers appropriate,
indicating whether it requires information or comments, and specifying a time
period within which these must be provided;
31
8.4.3 the Authority may make the proposed Licence available to the public and invite
views from interested parties.
The Authority shall take information provided into account and shall (except where such date is
extended by notice to the applicant with reasons for the extension) make a final Decision on the
application by the date specified in the notice.
8.5
Refusal of licence: the Authority shall not grant a Licence to an applicant who does not fulfil
the requirements of the Law, these Implementing Regulations and the relevant Rules
and Procedures.
8.6
Notification of decision: The Authority shall notify the applicant of its decision regarding the
grant or refusal of a licence within thirty (30) days from the receipt of a duly completed
application and submittal of information required in a manner acceptable to the Authority.
8.7
Publication of licence application decisions: The Authority will publish its Decision on each
Licence application and, in the event of a successful application, issue and (subject to
Article 4.7) publish the relevant Licence. The Authority shall provide reasons for the
denial of a Licence to the applicant upon request.
8.8
Additional application procedures: The Rules and Procedures shall provide sufficient
information to enable applicants to file complete applications including:
8.8.1 forms for Licence application, which may be different for different types of
Licences;
8.8.2 further details relating to information to be provided by an applicant for a Licence;
and
8.8.3 further procedures relating to Licence applications, including in relation to the
filing of further information in relation to incomplete applications.
ARTICLE 9 - LICENCE RENEWAL, AMENDMENT, SUSPENSION, REVOCATION AND

WITHDRAWAL
9.1
32
Amendment: The Authority may renew, amend, suspend, revoke, or withdraw a License
in the following circumstances:

9.1.1 if the Licensee has requested such action;
9.1.2 if the Licence conditions require such action;
9.1.3 if the Licensee contravenes the Licence or commits a Violation.
9.2
Amendment proposal by Licensee: Where a Licensee has applied for an amendment pursuant
to Article 9.1.1, the Authority shall within twenty (20) Business Days notify the
Licensee whether it approves or rejects the proposed amendments or that it requires
further information from the Licensee or third parties to properly assess the proposed
amendment, in which case the following shall apply:
9.2.1 the notice shall specify any information required from the Licensee and the time
period within which such information must be provided and a date by which the
Authority shall make a final Decision on the proposed amendment ;
9.2.2 the Authority shall also notify such third parties as it considers appropriate,
indicating whether it requires information or comments, and specifying a time
period within which these must be provided; and
9.2.3 the Authority may make the proposed amendments available to the public and
invite views from interested parties.
The Authority shall take information provided into account and shall make a final Decision on
the proposed amendment by the date specified in the notice, and may make any approval of the
proposed amendment subject to such further conditions, or amendments to the Licence, as it
considers appropriate.
9.3
Amendment pursuant to Licence conditions: Where a Licence is being amended pursuant to a

condition of the Licence, such amendment shall take effect in accordance with such
procedures and on such date as may be prescribed.
9.4
Process pursuant to Authority action: Prior to any amendment, refusal to renew, suspension
or revocation of a Licence pursuant to Articles 9.1.3, the Authority shall notify the
Licensee in writing that it is considering the relevant action. The notice:
33
9.4.1 shall give the Licensee sufficient time to prepare and submit comments (including,
where requested by the Authority or the Licensee, a presentation to the
Authority) on the relevant action including any measures the Licensee is taking or
proposes to take to remedy any events or circumstances complained of by the
Authority;
9.4.2 shall set out any procedures the Authority will use in considering the relevant
action;
9.4.3 may invite comments from other concerned parties if the Authority deemed it
necessary.
9.5
Date of effect: If the Authority amends, suspends or revokes, or does not renew, a
Licence pursuant to Article 9.4, it shall give the Licensee such time as the Authority
considers appropriate (taking into account the comments of the Licensee under Article
9.4) to comply with the Decision and shall specify a date on which the amendment,
suspension, revocation or expiration shall take effect.
9.6
Renewal of licences: Six (6) months before the expiry of the term of its Licence, the
relevant Licensee shall notify the Authority whether it intends to seek renewal of its
Licence. The Authority shall notify the Licensee not later than three (3) months before
the expiry of the term of the Licence whether it requires the Licensee to submit a
formal Licence renewal application. Where the Authority does not so notify the
Licensee, it shall renew the Licence for a term not less than one (1) year commencing
on expiry of the current term during which period the Authority and Licensee shall
meet to discuss issues related to the renewal or further extension of the Licence.
ARTICLE 10 - LICENSING FEES

10.1
34
Types of fees: In accordance with the Law and Charter the Board establishes fees payable
to the Authority as stated in the Rules and Procedures, as under:
10.1.1
Application Processing Fee: one-time non-refundable payment for the processing of

each application for issuance or renewal of Licences, such payment to be made
at the time of the application;
10.1.2
Annual Licence Fee: for the maintenance of Licences, payable by Licensees on
an annual basis within one month of the date due as specified in the Rules and
Procedures;
10.1.3
10.2
Additional Services Fee: for other services provided by the Authority as specified
in the Rules and Procedures, payable within one month of the date specified
in the Authoritys invoice.
Amount and classification: The Authority shall set out in Rules and Procedures the
methodology, requirements, conditions and determination of the fees to be charged
pursuant to Article 10.1 in accordance with the following principles:
10.2.1
fees shall be transparent, non-discriminatory, objectively justifiable and

appropriate for the type of licensed Electricity Activity;
10.2.2
the total amount of fees charged by the Authority shall be intended to permit
the Authority to recover its total costs and maintain appropriate reserve
requirements associated with its regulatory activities stipulated in the Law and
shall take into account the need to foster the development of competition and to
enhance the operational efficiency of the electricity system;
10.2.3
the total amount of fees charged by the Authority pursuant to Article 10.2.2
above shall be distributed proportionately among Licensees according to
transparent, clear and fair principles to be determined by the Board.
ARTICLE 11 - CONDITIONS OF LICENCES

11.1
Licence conditions: The Authority shall include in Licences such conditions as it consider
appropriate to implement the objectives of the Law and the requirements of these
Implementing Regulations, including, without limitation, conditions that address the
following matters:
11.1.1
the term for which the Licence is granted and shall be effective, taking into
account the design life of the plant, lines and other facilities to be used to carry
out the licensed Electricity Activities;
11.1.2
scope of the Electricity Activities for which a Licensee is granted a Licence

and which the Licensee is authorized to carry out ;
35
11.1.3
activities that the Licensee is prohibited from carrying out (if any), including
any conditions on ownership of the Licensee or by the Licensee of other
businesses carrying out Electricity Activities;
11.1.4
notification and authorization by the Authority of a proposed Merger or

Acquisition involving the Licensee;
11.1.5
the level of and requirements for segregation of Electricity Activities from

other activities of the Licensee for accounting and regulatory purposes;
11.1.6
provision of accounting information by the Licensee to the Authority;
11.1.7
provision of such information by the Licensee to the Authority as is required

by the Authority to carry out its functions;
11.1.8
compliance by the Licensee with applicable laws, codes and standards and with
Decisions of the Authority;
11.1.9
terms and conditions on which the Authority may suspend, cancel, revoke or
amend the Licence;
11.1.10 in relation to the Licensees system (as defined in the relevant Licence),
entering into agreements on specified terms with other Persons for connection
to or use of the Licensees system;
11.1.11 submission to the Authority by a Network Licensee of a Transmission Code
or a Distribution Code, as applicable, for its approval by the Board, and
following approval, compliance with such code and ensuring compliance with
the code by Persons connected to its system;
11.1.12 a requirement for the payment of Licence fees to the Authority,
11.2 Non-exclusive grant: Unless expressly indicated in the Licence, the grant of a Licence shall
not hinder or restrict the grant of a Licence to another Person for a like purpose and, in
the absence of such an express indication, the Licensee shall not be entitled to claim any
exclusivity, provided that the Authority may allow a licensed activity to be exclusive for all
or part of the period of the Licence, for a specific purpose, for a geographical area, or for
some combination of the foregoing.
36
11.3
Transfers of Licence or assets: Where a Licensee wishes to cede, give, lease, assign or
exchange its Licence or transfer ownership of the principal assets used in the
performance of its licensed Electricity Activity it shall notify the Authority in
accordance with Article (7.2) of the Law and shall provide such further information as
the Authority shall request in relation to such proposed action. The Authority:
11.3.1
may make the proposed action subject to such conditions it considers

appropriate, including the amendment of the relevant Licence;
11.3.2
may require the Licensee to pay such fee as the Board shall determine to
recover its reasonable costs in considering and determining the application;
11.3.3
in the case of a transfer of a Licence, shall not consent to such transfer where
the transferee would not be entitled to be granted the Licence.
Any action taken by the Licensee with regard to the transfer of the licence ownership or the
assets shall not go into effect until the Authority's approval has been granted in writing.
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38

PART 2 - CONNECTION
PART 2 - CONNECTION
ARTICLE 12 - STANDARD CONNECTION OFFERS

12.1
12.2
Preparation of standard offer: Every Network Licensee shall prepare a standard offer in
relation to connections with and use of his network by Licensees and Large
Consumers (a Standard Offer), for approval by the Authority within such time
period as the Authority shall specify by a Decision. Network Licensees shall
periodically update Standard Offers in the manner prescribed by the Authority from
time to time. A Standard Offer shall:
12.1.1
comply with these Implementing Regulations and any applicable guidelines in

Rules and Procedures published by the Authority, which guidelines may
specify the terms to be included in the Standard Offer and standard forms of
connection agreement.
12.1.2
include a standard form of agreement for connection or use of system (as

applicable).
Publication of standard offer: A Network Licensee shall make publicly available its
approved Standard Offer by:
12.2.1
sending a copy to the Authority;
12.2.2
making a copy available at its principal business offices; and
12.2.3
sending a copy to any Person on request.
ARTICLE 13 - CONNECTION AND USE OF SYSTEM OFFERS

13.1
Connection and use of system offers: Subject to Article 13.3 and following completion of the
negotiations pursuant to Article 13.2, a Network Licensee shall, within one (1) month of
receipt of a duly completed application by any Licensee or Large Consumer, offer to
provide connection to or use of its Transmission System or Distribution System, as the
case may be, to any applicant by means of a written agreement. Connection and use of
system offers proposed by Network Licensees in accordance with this Article 13.1 shall:
13.1.1
40
except with the prior consent of the Authority, be consistent with a Standard
Offer approved by the Authority for the Network Licensee pursuant to
Article 12;
13.2
13.1.2
shall remain open for acceptance by the applicant for a period not less than
sixty (60) Business Days;
13.1.3
be transparent, non-discriminatory and objective;
13.1.4
meet all reasonable requests for access to its electricity network at any
technically feasible point;
13.1.5
be subject to reasonable terms and conditions, consistent with the Law and
these Implementing Regulations including, where appropriate, a requirement
on the applicant to comply with the relevant industry codes and standards;
13.1.6
(where a connection is requested), include a connection agreement which would

allow the connected Person to connect and keep connected specified points of
connection to the Network Licensee's electricity network, and to use the
Network Licensees system as reasonably requested;
13.1.7
(where use of system only is requested) include a use of system agreement which
would allow the applicant to use the Network Licensees system as reasonably
requested.
Good faith negotiations: Upon receipt of a written request by any Licensee or Large
Consumer in such form as may be reasonably prescribed by the Network Licensee, a
Network Licensee shall enter into good faith negotiations to make a connection or use
of system offer. The following actions or practices by applicants shall be deemed to
breach the duty to negotiate in good faith:
13.2.1
obstructing or delaying negotiations or resolution of disputes;
13.2.2
refusing to provide information about electricity facilities or requirements that

are necessary for the connection arrangements;
13.2.3
misleading or coercing a party into reaching an agreement it would not

otherwise have made; or
13.2.4
refusing to include a provision allowing amendment of the connection

agreement to take into account Decisions of the Authority pursuant to the
Law and these Implementing Regulations.
41
The Consumer or the Network Licensee may refer a failure to comply with this clause to the
Authority pursuant to Article 15.
13.3
Right to refuse connection or use: A Network Licensee shall only be entitled to refuse to
enter into a connection or use of system agreement under Article 13.1 where to do so
would, in its reasonable opinion:
13.3.1
cause or be likely to cause material danger, damage or injury to any Person or to

any property;
13.3.2
cause material damage or otherwise interfere with the operation of its electricity
network, electricity facilities, the provision of its electricity services or otherwise
with the carrying out of its Electricity Activities;
13.3.3
not be reasonably technically feasible after considering alternative technical

solutions.
Any Person refused a connection shall be entitled to refer the matter for consideration by the
Authority pursuant to Article 15.
13.4
42
Charging Statement: Each Network Licensee shall by such date as is notified by the
Authority submit for the Authoritys approval an explanatory statement setting out the
basis and criteria on which the costs of connection to and use of its network are based
(the Charging Statement).
13.4.1
The Charging Statement shall be in such form and in such detail as shall be
necessary to enable any Licensee or Large Consumer to make a reasonable
estimate of the charges to which it would become liable for the provision of
such services by the Network Licensee.
13.4.2
The Charging Statement, and revisions to the Charging Statement, shall seek
to achieve the following objectives:
(a)
the facilitation of competition in the generation and retail of electricity;
(b)
the recovery by the Network Licensee of its prudent (as determined by

the Authority) capital expenditure and operational expenditure incurred by
its transmission or distribution business (as the case may be);
(c)
13.5
the recovery of a reasonable rate of return, to be approved by the Board, on

the technically prudent and economically efficient (as determined by the
Authority) capital expenditure incurred by its transmission or distribution
business (as the case may be) including needed reinforcements of its system.
13.4.3
Where the Network Licensee wishes to make a change to its Charging

Statement, it shall submit its proposed revised Charging Statement to the
Authority for its approval and such revision shall take effect only on approval
by the Board. Approval by the Board may be subject to such conditions as the
Board considers appropriate to meet the objectives of the Law.
13.4.4
The Network Licensee shall only enter into arrangements for connection to
and use of its system with Licensees and Large Consumers which conform
with the Charging Statement in effect at the date of the arrangements coming
into effect. Such arrangements may provide for charges to be revised from time
to time to take into account revisions to the Charging Statement.
13.4.5
The Network Licensee shall send a copy of the Charging Statement to any
Person on request, subject to payment of a charge reflecting the Network
Licensees reasonable costs of providing such Charging Statement.
13.4.6
The Network Licensee shall at least once each year review and submit to the
Authority for approval its Charging Statement with such proposed revisions
as may be necessary to take into account any criteria specified by the Board
from time to time, in addition to those set out in Article 13.4.2.
Further obligations of Network Licensees: Every Network Licensee shall ensure that in
relation to applications for connections by other Licensees and by Large Consumers:
13.5.1
it does not unduly discriminate between applicants for connection under similar
circumstances;
13.5.2
it makes available on request and within a reasonable period of time all necessary
information and specifications to applicants requesting connection and access;
13.5.3
it only uses information received from applicants for the purposes for which it was
supplied and does not disclose the information to other departments, Affiliates or
Persons to whom the information could provide a competitive advantage.
43
ARTICLE 14 - PROVISION OF INFORMATION ON CONNECTION AGREEMENTS

14.1
Reports on connection arrangements: Every Network Licensee shall provide to the

Authority, at such time or times as the Authority prescribes, a report on its connection
and use of system arrangements. The report shall:
14.1.1
list all connection agreements with Licensees and Large Consumers to which
the Network Licensee is a party;
14.1.2
certify whether or not such agreements comply fully with the Standard Offer
and fully explain any variances;
14.1.3
provide such information on the quality of its connection and use of system
services as the Authority prescribes;
14.1.4
contain any additional information on its connection arrangements required by

the Authority.
ARTICLE 15 - NON-COMPLIANT CONNECTION OFFERS AND AGREEMENTS
44
15.1
Non-compliant Connection Agreements: If the Authority decides that a connection agreement

is not in compliance with the Law, these Implementing Regulations or the Licence of
a party to the connection agreement, it shall notify the non-compliance to the relevant
Network Licensee within a reasonable period of determining the existence of the noncompliance. The Authoritys notification shall set out the basis for its Decision and
require the Network Licensee to agree amendments to the connection agreement with
the other party to the agreement within the time prescribed in the notice. If the parties
are unable to reach agreement on the terms and conditions of a connection agreement
complying with the determination of the Authority, either party may refer the matter for
dispute resolution in accordance with Article 15.5.
15.2
Authoritys settlement of terms: If a Network Licensee has failed or refused to make an offer
for connection or use of system to an applicant pursuant to Article 13 within the time
period specified, or the applicant is dissatisfied with the terms of the offer or the
negotiations, on application by either the Network Licensee or the applicant the
Authority may settle any terms of the offer or agreement in dispute having regard to the
provisions of this Article 15. Where the applicant wishes to proceed on the basis of the
terms settled by the Authority pursuant to this Article 15.2, the Network Licensee shall
enter into such agreement.
15.3
Disputes relating to varying of contractual terms: Where a Network Licensee or a party to a

connection or use of system agreement wishes to vary the contractual terms of the
agreement, the Authority may, at the request of the Network Licensee or other party,
settle any dispute relating to such variation having regard to the other provisions of this
Article 15.
15.4
Charges in conformity with Charging Statement: Where a Network Licensee and a party to a
connection or use of system agreement are in dispute as to whether charges pursuant to
such an agreement are in conformity with the relevant Charging Statement, the
Authority may, at the request of the Network Licensee or other party, determine
whether the charges conformed with the relevant Charging Statements.
15.5
Disputes: Disputes under Articles 15.1, 15.2, 15.3 or 15.4 shall be referred to the
Authority in accordance with the provisions of Chapter Seven.
45
46

PART 3 RELATIONSHIP OF LICENSEES WITH USERS AND CONSUMERS
PART 3 RELATIONSHIP OF LICENSEES WITH USERS AND CONSUMES
ARTICLE 16 - NO UNDUE DISCRIMINATION

16.1
No undue discrimination: Unless otherwise specifically permitted by or pursuant to these

Implementing Regulations, Network Licensees shall offer all users of their services
non-discriminatory terms of service, unless different terms as may be approved by the
Authority are objectively justified between users, or classes of users, based on differences
in supply conditions, including different costs or a shortage of available facilities or
resources.
16.2
Cessation of undue discrimination: Where any undue discrimination is shown, the Network
Licensee shall be obliged to justify it to the satisfaction of the Authority, or to cease the
undue discrimination immediately upon receipt of a Decision from the Authority.
ARTICLE 17 - AVAILABILITY OF INFORMATION TO CONSUMERS
48
17.1
Paper copies: Each Transmission Licensee, Distribution Licensee and Retail

Licensee shall at its business offices maintain current paper copies of its current Tariffs
and updated applicable codes and standards as approved by the Board. These paper
copies shall be made available for public inspection, without charge, during normal
business hours. A Distribution Licensee shall provide, upon request and without
charge, paper copies of its schedule of Tariffs to any Consumer who requests them.
17.2
Website information: Each Transmission Licensee, Distribution Licensee and Retail

Licensee shall where they have an official website at all times maintain on such website,
the following information:
17.2.1
information that would be useful for potential applicants for connection to or

use of its system, including a copy of its Charging Statement and its schedule
of Tariffs;
17.2.2
a copy of any approved codes and standards applicable to the Licensee;
17.2.3
in the case of Network Licensee downloadable forms for connection

applications together with guidance notes on their completion;
17.2.4
a copy of its Licence, as amended from time to time;
17.2.5
17.3
the official website, official e-mail address and official postal address of the
Authority, together with a clear statement that the Licensee is regulated by the
Authority under the Law and Implementing Regulations and that
Consumers, Licensees and other Persons may contact the Authority if they
are unable to resolve disputes with the Licensee.
Notification of tariff changes: If the Tariffs of a Transmission Licensee, Distribution

Licensee or Retail Licensee are varied, amended or supplemented in accordance with
the provisions of Chapter Four, the Licensee shall notify Consumers and other users of
their services as are affected by the change. The Licensee shall use reasonable
endeavours to ensure that such notice is given prior to the date on which such change in
Tariffs shall take effect.
ARTICLE 18 - QUALITY OF SERVICE FOR CONSUMERS

18.1
Transmission and generation consumers: Where Transmission Licensees, Generation

Licensees and Cogeneration Licensees provide electricity services to Consumers, such
electricity services shall comply with the quality of service standards specified in Rules and
Procedures and in the connection agreements with each such Consumer. The Authority
may from time to time amend, add or delete quality of service standards, following such
consultation with affected Persons as the Authority considers appropriate.
18.2
Quality of service standards: Distribution Licensees shall provide electricity services that meet
specific quality of service codes and standards to Consumers. The quality of service codes
and standards shall be developed by the Distribution Licensee having the largest number of
Consumers and shall be approved by the Authority. The Authority may provide further
rules and procedures on quality of service standards in Rules and Procedures. The
Authority may from time to time amend, add or delete quality of service standards, following
consultation with the affected Distribution Licensee including in response to comments or
complaints received by the Authority from Consumers.
18.3
Reports on quality of service standards: Where the quality of service codes and/or standards
have been established by the Authority in relation to a Distribution Licensee, the
relevant Distribution Licensee shall deliver written reports in respect thereof to the
Authority, in a form and at a frequency established by the Authority. At the
Authoritys request, such a report shall be prepared and provided by an independent
49
third party. The reports shall set out the Distribution Licensees actual results for each
quality of service standard.
18.4
Failure to meet a quality of service standard: Where any quality of service report indicates that a
standard has not been achieved, the Distribution Licensee shall provide an explanation
as to why the standard was not achieved and what specific steps it has taken or intends to
take to correct the problem. The Authority shall advise the Distribution Licensee
within thirty (30) Business Days of receipt of any quality of service report whether it
accepts the explanation provided for any standard that was not achieved. If the
Authority does not accept the explanation:
18.4.1
it shall issue a Decision setting out the additional steps that the Distribution
Licensee shall take and the time within which those steps shall be taken;
18.4.2
it shall issue a Decision ordering what, if any, additional reporting requirements

the Distribution Licensee shall adhere to, until the standard is achieved;
14.4.3
it may by order require a reduction in the Distribution Licensees tariffs or

repayment to some or all of the Consumers directly connected to its
Distribution System of such amount as may be specified in the order.
ARTICLE 19 - SUSPENSION AND TERMINATION OF SERVICE TO CONSUMERS
50
19.1
Right to suspend or terminate electricity service: Subject to other terms as may be agreed
between the Licensee and a Consumer, the Authority may issue a Decision to
establish the terms, conditions, process and procedure under which a Licensee shall have
the right to suspend or terminate a user or Consumers electricity services pursuant to
Article (8.3) of the Law.
19.2
A Licensee shall not be entitled to suspend or terminate services under Article 19.1
unless it has given the Consumer not less than twenty (20) Business Days written
notice of its intention to do so and indicated in the notice the Consumers right to raise
the issue as a dispute with the Authority under Chapter Seven.
19.3
Where any Person takes electricity without the permission of the Licensee, the
Licensee shall be entitled to recover from that Person the value of the electricity taken.

ARTICLE 20 - RIGHTS OF ENTRY ON LANDS

20.1
20.2
20.3
Rights of entry on land: Pursuant to Article (8.2) of the Law, and subject to Article 20.2, a
Person authorized by a Licensee shall be entitled to access rights for its equipment and
installations as necessary on a third partys premises up to the point of connection of the
Licensees electric system to the electric system of a third party, for the purposes of
executing its duties under its Licence, which may include:
20.1.1
to inspect lines and equipment, to connect or to disconnect the premises;
20.1.2
to install, inspect, maintain or read any electricity meter.
Restrictions: The rights of entry under Article 20.1 shall be subject to the following
restrictions:
20.2.1
subject to Article 20.3, the Licensee shall give the third party reasonable notice
of the proposed entry, being not less than two (2) Business Days, and the
proposed time of entry shall be during reasonable hours;
20.2.2
the Licensee shall utilise properly identified and qualified personnel;
20.2.3
the Licensees personnel interfere as little as possible with the second party's
activities and premises.
Emergencies: A Licensee shall not be required to comply with Article 20.2.1 where it
requires access to deal with an emergency situation which has a risk of damaging
equipment or injuring Persons.
ARTICLE 21 - RIGHTS OF EXPROPRIATION OF LAND
52
21.1
Application for expropriation: Where a Licensee requires land or has an interest in land to
carry out its licensed Electricity Activities, the Licensee shall attempt to reach a
commercial agreement with the property owner or his representative.
21.2
Application to Authority: If the Licensee fails to reach an agreement with the property
owner or his representative, it may apply to the Authority for the expropriation of any
necessary property pursuant to Article (8.1) of the Law. The Authority shall consider
the details of the application and may:
21.3
21.2.1
mediate between the parties to seek to find a solution acceptable to both parties;
21.2.2
propose an alternative solution to the parties (where possible);
21.2.3
determine by Decision that land is not required by the Licensee to carry out its
licensed Electricity Activities; or
21.2.4
determine by Decision to initiate the exercise of its functions under the

Expropriation Law in accordance with Article 21.3.
Exercise of expropriation functions: The Authority shall carry out its functions as required
under the Law for the Expropriation of Real Estate for the Public Interest and
Temporary Acquisition of Properties (the Expropriation Law) in relation to the
application for expropriation, and shall provide a recommended solution and such further
assistance as may be requested by the Minister in relation to the exercise of the
Ministers powers under the third article of Royal Decree issued for the Expropriation
Law (M/15 of 11/3/1424AH).
ARTICLE 22 - SITES WITH ENVIRONMENTAL OR HISTORICAL SIGNIFICANCE

22.1
Requirement to protect designated sites: Where technically possible, and subject to the
discretion of the Authority, Licensees shall protect sites designated under existing laws
and regulations or identified by a public authority in the Kingdom as having
environmental or historical significance from damage or disruption due to the
construction, operation or maintenance of electricity networks and other electricity
facilities.
22.2
Notification to Authority and compliance with Decisions: Licensees shall immediately notify the
Authority where damage or disruption to sites with environmental or historical
significance has or is expected to occur in connection with its licensed Electricity
Activities and shall comply with any Decisions of the Authority in relation to the
protection of such sites.
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54
CHAPTER FOUR - TARIFFS
CHAPTER FOUR TARIFFS
ARTICLE 23 - TARIFFS
23.1
Review of tariffs: In accordance with the Law and Charter, the Authority shall review and
recommend Tariffs to be collected by Licensees from Consumers or other users of
electricity services in the following circumstances:
23.1.1
where the Council of Ministers requests that the Authority carry out a review
of the Tariffs;
23.1.2
where the Authority considers it appropriate, having regard to the

circumstances, to initiate a review of the Tariffs;
23.1.3
where the relevant Licensee has requested the initiation of a review, with
reasons, and the Authority considers it appropriate, having regard to the
circumstances, to initiate an interim review of the Tariffs,
and in the case of a review under Articles 23.1.2 and 23.1.3, the Authority shall notify affected
Licensees of the circumstances which make it appropriate to undertake a review of the tariffs.
23.2
Review notice: To initiate a Tariff review pursuant to Articles 23.1.1, 23.1.2 or 23.1.3, the
Authority shall send a review notice to the Licensees and such other Persons as the
Authority considers appropriate.
23.3
Information in review notice: A review notice under Article 23.2 shall set out:
23.4
23.3.1
the period to which the Authority expects the review to relate (the review
period);
23.3.2
the date by which the affected Licensees and other notified Persons are to
provide such information as is specified by the Authority (in the review notice
or otherwise) to enable the Authority to carry out the Tariff review.
Draft recommendations: Following consideration of the information received pursuant to a

review notice, as set out in Article 23.3, the Authority shall send its draft
recommendations to the affected Licensees, and such other Persons as the Authority
considers appropriate setting out:
23.4.1
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the Authoritys conclusions on the Tariff review with such supporting reasons
as it considers appropriate;
23.4.2
specifying the changes to the Tariffs which the Authority intends to

recommend to the Council of Ministers;
23.4.3
stating the date on which the Authority proposes that each of the relevant
changes should come into effect;
23.4.4
specifying a period being not less than fifteen (15) Business Days within which
affected Licensees and other notified Persons may comment on the
Authoritys proposed recommendations,
and the Board shall consider any comments received prior to finalisation of its recommendations
to the Council of Ministers in regard to the Tariffs to be collected by the Licensees from
Consumers.
23.5
23.6
23.7
Considerations in relation to Tariff recommendations: The Authority may from time to time
publish methodologies setting out its processes, practices and considerations in relation
to the development of recommendations for Tariffs pursuant to this Article 23 and
Article (9) of the Law. The matters that may be set out in the methodologies may include:
23.5.1
the policies on which the methodologies are based;
23.5.2
the methodology for calculation of Tariffs as may be specified, for categories

of Electricity Activity or categories of Consumers;
23.5.3
any other matters the Authority considers relevant for the purposes of
collation of relevant information or calculation of the Tariffs.
Implementation of Tariffs: Following approval of revised or new Tariffs by the Council of

Ministers pursuant to Article (9) of the Law, the Authority shall notify the affected
Licensees of such revised or new Tariffs including:
23.6.1
the steps to be taken to implement the revised or new Tariffs and to notify
Consumers and other users of the Licensees electricity services affected;
23.6.2
(subject to the terms of the Tariffs approved by the Council of Ministers, a

date (being not less than fifteen (15) Business Days from the date of the
notice) on which the revised or new Tariffs shall take effect.
Agreement of Prices: Two Licensees, or a Licensee and a Large Consumer, may agree
Price(s) for the provision of electricity services provided that any such agreement is
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notified to the Authority in advance and the Authority does not raise any objection to
the agreement within twenty (20) Business Days of notification. Where the Authority
raises an objection the parties may resubmit the agreement to take account of the
objection or raise the matter as a dispute in accordance with Chapter Seven.
23.8
23.9
Monitoring of compliance: Subject to Article 23.3, The Authority shall monitor compliance with
the Tariffs established pursuant to this Article and Article (9) of the Law, and may require
the Licensee to provide such information as it requires to determine such compliance.
Where the Authority determines that the Tariffs have not been complied with it:
23.8.1
shall require the Licensee to provide an explanation;
23.8.2
may make such adjustments to the Prices to be charged by the Licensee as to

compensate for any over-recovery by the Licensee;
23.8.3
may take action for contravention by the Licensee in accordance with Part 2 of
Chapter 7.
Reporting requirements: The Authority shall establish reporting requirements on relevant

Licensees to allow calculation of the cost of provision of electricity services by such
Licensees. Such information requirements shall include:
23.9.1
information on key performance indicators, as specified by the Authority from

time to time, impacting on the cost of electricity service and on Tariffs;
23.9.2
information on the assets, profit and loss, revenues, costs, liabilities and
reserves of each separately identified business conducted by the Licensee in
each period as specified by the Authority.
Such information shall be submitted in such forms as may be made available from time to time
by the Authority on its website and in accordance with such unified accounting system and
criteria as is established by the Authority and as modified from time to time.
23.10 Information database for Tariffs: The Authority shall establish and regularly update a
database of information to assist it in the preparation of Tariffs.
23.11 Pre-existing Tariffs: Any Tariff which on the date of these Implementing Regulations
was in effect shall continue to be in effect until a new Tariff is determined pursuant to
the provisions of the Law and this Article 23.
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CHAPTER FIVE COMPETITION AND ANTI-COMPETITIVE CONDUCT
CHAPTER FIVE COMPETITION ANTI-COMPETITIVE CONDUCT
ARTICLE 24 - ANTI-COMPETITIVE PRACTICES

24.1
60
No anti-competitive practices: Pursuant to Article (10.3) of the Law, no Licensee shall

engage in a practice restricting or distorting competition in the Electricity Industry, or a
part of it including the following:
24.1.1
arrangements involving a Licensee that directly or indirectly fix the prices or

other terms or conditions of service in the Electricity Industry, or a part of it;
24.1.2
arrangements involving a Licensee that directly or indirectly determine which

Person will win a contract or business opportunity in the Electricity Industry,
or a part of it;
24.1.3
arrangements involving a Licensee to apportion, share or allocate electricity

markets among themselves or other Licensees;
24.1.4
any other act or arrangement involving a Licensee that, in the Authoritys

opinion, is likely to restrict or distort competition in the Electricity Industry.
24.2
No abuse of dominant position: Pursuant to Article (10) of the Law and subject to Article 24.4,
Licensees which have a Dominant Position in the Electricity Industry, or any part of it,
are prohibited from undertaking activities or actions that are an abuse of their Dominant
Position. An abuse of a Dominant Position shall be any action or activity engaged in by a
dominant Licensee that the Authority determines by Decision, to have the effect, or to be
likely to have the effect, of materially restricting or distorting competition or influencing the
fairness of a decision in the Electricity Industry, or any part of it.
24.3
Determination by Authority of abuse of dominance or anti-competitive practice: Subject to Article

24.4, the Authority may, on application by any Person, or on its own initiative,
determine whether, in any case, the actions or activities of a dominant Licensee
constitute an abuse of its Dominant Position, within the meaning of Article 24.2, or
whether the actions or activities of any Licensee amount to an anti-competitive practice
within the meaning of Article 24.1. The Authority shall give advance notice to directly
and materially affected parties that a Decision is being considered pursuant to this
Article 24.3 and shall offer an opportunity to such parties to comment on the relevant
issues before the Decision is made. Without prejudice to Article (13) of the Law, a
determination by the Authority under Article 24.3 shall be binding on all parties.
24.4
Actions which are not abuse of dominance or anti-competitive: The Authority may issue a
Decision clarifying that a specific action or activity is not an abuse of dominance, or an
anti-competitive practice, as the case may be, under such circumstances as may be
specified in the Decision. A Decision issued under this Article 24.4 shall specify the
reasons for the Decision, which shall be consistent with the development of a
competitive market-based Electricity Industry.
24.5
Registration of Agreements: Licensees shall register with the Authority agreements required
to be registered pursuant to Article (10.2) of the Law within a period not exceeding
twenty (20) Business Days of concluding these agreements. Agreements registered with
the Authority shall be subject to the confidentiality provisions set out in Article 4.7. The
Authority shall use the information obtained pursuant to this Article 24.5 solely for the
purposes of determining whether to take any action pursuant to this Chapter Five.
ARTICLE 25 - REMEDIES FOR ANTI-COMPETITIVE PRACTICES

25.1
Authority powers to remedy: If the Authority determines that, in a particular case, or in a

number of related or unrelated cases, the actions or activities of a Licensee constitute an
abuse of its Dominant Position or an anti-competitive practice, within the meaning of
the Law and these Implementing Regulations, the Authority may take one or more of
the following actions:
25.1.1
issue a Decision requiring one or more Persons named in the Decision to

take the following actions:
(a) to cease the actions or activities specified in the Decision, immediately or at
such time prescribed in the Decision, and subject to such conditions
prescribed in the Decision;
(b) to make specific changes in actions or activities specified in the Decision, as
a means of eliminating or reducing the abusive or anti-competitive impact;
25.1.2
request that the Licensee involved in the abusive actions or activities or anticompetitive practices and the Persons affected by such actions, activities or
practices meet to attempt to determine remedies to prevent or eliminate
continuation of such actions, activities or practices, and, if necessary resolve any
dispute pursuant to Chapter Seven;
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25.1.3
require the Licensee to provide periodic reports to the Authority to assist in

determining whether the actions or activities are continuing and to determine
their impact on the Electricity Industry or part of it;
25.1.4
refer the matter to the Committee under Chapter Seven with such
recommended penalty for the Violation as the Authority considers
appropriate;
25.1.5
issue a Decision (following consultations with the relevant Licensee or any

other affected Persons as per Authority's assessment) permitting the actions or
activities complained of, provided that the Licensee takes such further action
as the Authority may specify and which the Authority considers to be an
effective means of putting an end to the continuation of the abusive or anticompetitive action, activities or practices, such as abandoning the ownership of
specified parts of Licensee's works or carrying out of specified parts of his
business in a separate company with separate books of account.
ARTICLE 26 - MERGERS OR ACQUISITIONS

26.1
26.2
62
Requirements of the Law: Pursuant to Articles (10.5) and (10.6) of the Law, the Licensees
shall:
26.1.1
obtain the Board's approval before undertaking any merger with or

acquisition of a majority shares or assets of other Licensees;
26.1.2
inform the Authority of any initial agreement reached on a merger as described

in Article 26.1.1;
26.1.3
obtain the Board's approval before purchasing five percent (5%) or more of
the shares of another Licensee, or his securities, bonds or any other form of
ownership rights or purchasing a lesser percentage that may create a Dominant
Position in any part of the Electricity Industry.
Applications for approval: Licensees shall apply for approval of a proposed Merger or
Acquisition under Article (10.5) and (10.6) of the Law by submitting an application (in
such form as the Authority may from time to time require) which shall include detailed
information on the proposed Merger or Acquisition or purchase transaction. Such
information shall, at a minimum, include:
26.3
26.2.1
identification of all Persons involved in the Merger or Acquisition or

purchase transaction that have a greater than five per cent (5%) ownership
interest or such lower percentage as the Authority may specify;
26.2.2
a description of the nature of the transaction and a summary of its commercial

terms;
26.2.3
basic information on the Persons involved in the transaction, including their

annual financial revenues from electricity markets, value of assets devoted to
electricity business, the total capacity of generation, transmission or distribution
owned, operated or Controlled by such Persons, the number of customers
supplied (including quantity of electricity supplied) and copies of any published
annual or quarterly financial reports; and
26.2.4
a description of the relevant parts of the Electricity Industry in which the

Persons involved in the transaction operate.
Request for further information: The Authority may require further information to be
provided relating to a transaction for which approval is sought and its implications for the
Electricity Industry, including information on the following matters:
26.3.1
electricity related services provided by parties to the transaction, Consumers,

suppliers, market shares, and financial performance;
26.3.2
activity of competitors and competitors market shares;
26.3.3
availability of alternative sources of electricity or electricity services in the

relevant parts of the Electricity Industry;
26.3.4
the impact of the transaction on suppliers, competitors and Consumers in

relation to the relevant Electricity Activity.
The Authority shall require the provision of such further information within such time
period as is reasonable taking into account the complexity of the information to be
provided and the difficulty of obtaining or preparing such information.
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26.4
Board decision on application: Within twenty (20) Business Days of receipt of a duly
completed application under Article 26.2, including all further information as may be
requested under Article 26.3, the Authority shall:
26.5
26.6
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26.4.1
approve the transaction without conditions;
26.4.2
approve the transaction with such conditions as are reasonably related to

promoting the development of open and competitive Electricity Industry, and
maximizing the benefit for Consumers;
26.4.3
not approve the transaction and quote reasons.
Guidelines: The Board's Decision with respect to a Merger or Acquisition under

Article (10.5) or (10.6) of the Law shall take into account the following guidelines:
26.5.1
a Merger or Acquisition shall be found to be likely to prevent or lessen

competition substantially when the parties to the Merger or Acquisition
would more likely be in a position to exercise a materially greater degree of
market power in a substantial part of the relevant market in the Electricity
Industry for five years or more than if the Merger or Acquisition did not
proceed in whole or in part; and
26.5.2
Mergers or Acquisitions generally will not be challenged on the basis of

concerns relating to the unilateral exercise of market power where the postMerger or Acquisition share of the entity would be less than 25% or such
percentage specified by a Decision of the Authority from time to time taking
into account the transition period to a competitive Electricity Industry.
Considerations in applying guidelines: In applying the guidelines referred to in Article 26.5, the
Authority shall consider whether in its view:
26.6.1
the Electricity Activity or a part thereof of a party to the proposed Merger or

Acquisition has failed or is likely to fail;
26.6.2
acceptable alternative sources for the services provided by the parties to the
proposed Merger or Acquisition are or are likely to be available;
26.6.3
there are any barriers to entry by other Persons in the relevant market,
including any effect of the proposed Merger or Acquisition on such barriers.
26.6.4
effective competition would remain in a relevant market in the Electricity

Industry that would be affected by the proposed Merger or Acquisition;
26.6.5
there is a likelihood that the proposed Merger or Acquisition will or would

result in the removal of a competitor;
26.6.6
the nature and extent of change and innovation in the relevant market in the
Electricity Industry mitigates against other effects of the proposed Merger or
Acquisition,
and any other factor that is relevant to competition in a market that would be affected
by the proposed Merger or Acquisition.
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ARTICLE 27 - RESTRUCTURING OF THE ELECTRICITY INDUSTRY

27.1
Preparation of Electricity Industry restructuring plan: Pursuant to and in accordance with Article
11 of the Law, the Authority shall prepare the Electricity Industry restructuring plan,
approved by the Board, consistent with such development plans as may be prepared by
the Ministry under Article (3.2) of the Law and shall make such Electricity Industry
restructuring plan available on its website. The Electricity Industry restructuring plan
shall deal with the following areas:
27.1.1
unbundling the Electricity Activities that are licensable at the date the Law
comes into effect and to:
(a) enhance generation of electricity and its transmission, distribution, supply
and Trading;
(b) enhance Cogeneration and Trading of Cogeneration products;
(c) enhance private sector participation in legitimate competition in the
Electricity Industry ;
(d) promote the orderly and timely introduction of legitimate competition and
to curb abuse of any monopoly powers;
27.1.2
27.2
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introduction of open and non-discriminatory access to any Licensee or Large

Consumer for connections to and use of the Transmission System(s) and
Distribution Systems, which could include steps for the creation of a separate
transmission entity;
Steps for implementation of the Electricity Industry restructuring plan: The Electricity Industry
restructuring plan shall detail the further actions to be taken to further liberalise the
Electricity Industry, to increase private sector participation in the Electricity Industry,
to reduce monopolies in the Electricity Industry and toward final introduction of a
competitive electricity market, which actions may, subject to Article (12) of the Law, include:
27.2.1
details of firm actions to be taken and such further information as the

Authority considers necessary for proper consideration of such firm actions;
27.2.2
details of further actions proposed to be taken and the dates by which the
Authority anticipates conditions will be appropriate for such further actions to
be taken;
27.2.3
27.3
27.4
preparatory actions to be carried out by the Authority, or other Persons

pursuant to Decisions of the Authority, to establish a state of readiness for
further actions identified pursuant to Article 27.2.2 above, comprising:
(a)
amendments to the legal and regulatory framework, including to the Law,

Charter, the Implementing Regulations, Licences and key industry
documents, identified as necessary to facilitate the firm and further actions
identified under paragraphs 27.2.1 and 27.2.2 above;
(b)
the overall timescales for the introduction of, and thereafter further
development of, a competitive electricity market in accordance with
Article (11.4) of the Law;
(c)
such other matters as the Authority considers appropriate.
Consultation: Pursuant to Article 27.2, the Authority:

27.3.1
shall consult with such Persons as it considers appropriate prior to preparing

and updating the Electricity Industry restructuring plan;
27.3.2
may require Persons involved in the Electricity Industry and public bodies to
provide to it such information as it requires to carry out its functions in relation
to the preparation or implementation of the Electricity Industry restructuring
plan;
27.3.3
shall as part of a consultation under Article 27.3.1 indicate to any Licensee

whether it intends to issue a direction or Decision requiring that Licensee to
take steps in connection with the competitive electricity market and shall:
(a)
give the Licensee such time as the Authority considers appropriate for
considering such proposal and providing comments to the Authority;
(b)
take the Licensees comments into account before issuing such a

direction or Decision to that Licensee.
Monitoring of restructuring: The Authority shall continuously monitor progress in

implementation of the Electricity Industry restructuring plan and shall, subject to
69
Article (12) of the Law, issue such directions and Decisions as it considers appropriate
to ensure compliance, including:
27.5
27.6
70
27.4.1
requirements to corporatize separate business units;
27.4.2
requirements to establish contractual arrangements to support the restructuring

process;
27.4.3
the preparation of transfer schemes in relation to assets and liabilities;
27.4.4
the establishment of asset and employee registers and a process for allocation of
these to separate business units mentioned above.
Establishment of a competitive electricity market: The Board shall take such steps pursuant to
Article (11.4) of the Law and this Article (27) as it considers appropriate for the
development of the Electricity Industry to the point where a competitive electricity
market can be established. At such stage when the Board considers that a competitive
electricity market may be established, the Board shall issue such directions and
Decisions to Licensees as appropriate in connection with the implementation of the
competitive electricity market, which may include:
27.5.1
proposals for amendments to Licences in accordance with these

Implementing Regulations;
27.5.2
a requirement to implement codes and documents relating to the competitive

electricity market;
27.5.3
a requirement to vary industry codes and documents to reflect changes

necessary for the proper implementation and operation of the Electricity
Market;
27.5.4
such other directions as the Board considers appropriate.
Protection of existing investments: The Authority shall, in taking actions pursuant to Article
27.5, take such steps as necessary to comply with the requirements to protect the rights of
investors and developers under Article (12) of the Law. The protection of the rights of
the investors and developers in projects in the Electricity Industry pursuant to Article
(12) of the Law applies to the contractual rights of investors as existing at the date of the
introduction of a competitive Electricity Market pursuant to Article 27.5. The

protection afforded by Article (12) of the Law continues to apply until the earlier of the
following:
27.6.1
the project electing, with the approval of the Authority, to participate in the
competitive Electricity Market; (upon agreement of the relevant contractual
parties),
27.6.2
expiry or termination of the contractual rights of investors and developers

referred to above,
and the Authority may issue such further Decisions and directions as it considers
necessary in relation to the participation of such projects in the competitive Electricity
Market from the date set out in Article 27.6.1 or 27.6.2 above (as applicable).
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70

ARTICLE 28 - GENERAL
28.1
Disputes: Pursuant to the Law and in particular Articles (6.2), (13.2) and (15.2) thereof,
disputes shall be dealt with as follows:
28.1.1
28.1.2
28.1.3
Consumer Disputes: disputes between a Consumer and a Licensee in relation to

the application of Tariffs to such Consumer, electricity services provided by
the Licensee to the Consumer or other activities impacting on the Consumer
carried out by the Licensee pursuant to the Law, the Implementing
Regulations, Rules and Procedures or its Licence:
(a)
shall be dealt with under the processes established under Article 29;
(b)
where not resolved under Article 29, may be referred to the Authority
under Article 31;
(c)
where a party wishes to appeal the determination of the Authority under

Article 31, such party may refer the matter to the Committee in
accordance with Article 31.
Electricity Industry Disputes: subject to the provisions on dispute resolution in any

contractual agreement between the parties to the dispute, disputes between
Licensees, or between a Licensee and a Large Consumer, relating to an
Electricity Activity:
(a)
may be dealt with under the processes established under Article 30;
(b)
where not resolved under Article 30, may be referred to the Authority
under Article 31;
(c)
where a party wishes to appeal the determination of the Authority under

Article 31, such party may refer the matter to the Committee in
accordance with Article 31.
Disputes relating to Authority Decisions: disputes relating to Authority Decisions

shall be dealt with as follows:
(a)
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any Person refused a Licence, or the renewal of a Licence, by the

Authority may refer the matter to the Committee under Article 31;
28.1.4
28.2
28.3
(b)
a Decision of the Authority in relation to a custodianship action shall in

accordance with Article (15.2) of the Law be referred to the Committee
under Article 31;
(c)
Decisions of the Authority determining disputes as described in Articles

28.1.1 and 28.1.2 shall be dealt with in the manner described under those
Articles;
(d)
Decisions of the Authority determining the existence of a Violation shall

be referred to the Committee in accordance with Articles 31 and 34; and
(e)
all other disputes relating to Decisions of the Authority shall not be

referable to the Committee. However, with due regard to the Kingdoms
laws, the relevant Person may refer the issue for arbitration according to
Article (13.8) of the Law.
Appeal from Disputes Resolution Committee determinations: In accordance with Article

13(4) of the Law, a Decision of the Committee may be appealed to the Board
of Grievances within sixty (60) days from the date of its notification, and shall
be final upon the expiration of such sixty (60) days unless so appealed.
Procedures for dispute resolution:

28.2.1
The Authority shall deal with all disputes that are submitted or referred to it in
accordance with the dispute resolution methods set out in this Chapter Seven.
The Authority may provide further rules, procedures, and provisions on its role
in dispute resolution in Rules and Procedures.
28.2.2
The referral of disputes to the Committee as provided for in Article 28.1 shall
be in accordance with, and within such timescales provided in, the rules and
procedures of the Committee produced pursuant to Article (13.3) of the Law.
For reference, the current rules and procedures of the Committee are set out
in Annex 1.
Effectiveness of Authority Decisions pending appeal: In the case of a referral of a Decision of

the Authority to the Committee or to the Board of Grievances as described in Article
28.1.3, the Decision of the Authority being appealed shall remain in effect pending
resolution of the appeal, unless the Authority provides otherwise.
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ARTICLE 29 - CONSUMER DISPUTES

29.1
29.2
Licensees procedures: Each Licensee providing electricity or electricity services to

Consumers shall prepare and submit to the Authority for approval a procedure for
handling complaints from Consumers. Such procedure may provide for separate
processes for different classes of Consumers. Such procedures shall specify:
29.1.1
the time periods within which Consumer complaints will be processed and
responded to by the Licensee;
29.1.2
that any complaints or disputes not resolved under such procedures may be
referred to the Authority;
29.1.3
the details of the Consumer care contact person at the Authority, as notified
by the Authority to the Licensee from time to time.
Provision of Licensees procedures: The Licensee shall without charge provide a copy of
procedures prepared pursuant to Article 29.1:
29.2.1
to any of its Consumers requesting a copy;
29.2.2
to a Consumer it intends to take any action against including termination of

service, disconnection or action for non-payment;
29.2.3
to a consumer which has raised any complaint, in writing or otherwise, in

connection with the services provided by the Licensee,
and where it has a website, shall make a copy of the procedures available on its website.
29.3
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Consumer disputes referable to Authority: Disputes between a Licensee and a Consumer

dealing with any of the following matters may be referred to the Authority in accordance
with Article 31:
29.3.1
the access to, or quality of, electricity service provided or offered by the
Licensee;
29.3.2
the financial obligations that the Licensee intends to impose or has imposed
on the Consumer as a condition of obtaining or continuing to obtain service,
including any disputed invoice;
29.3.3.
the refusal to make an offer of a connection or use of system agreement;
29.3.4
the disconnection or reconnection of electrical service by the Licensee;
29.3.5
the interpretation of a contract relating to an Electricity Activity between the

Licensee and Consumer;
29.3.6
the interpretation of, or applicability of, any approved Tariff;
29.3.7
the treatment of the Consumers confidential information by the Licensee;
29.3.8
the Consumer failing to pay within the prescribed time payments due from the
Consumer to the Licensee for the provision of services by the Licensee; or
29.3.9 any other matter that is within the jurisdiction of the Authority.
29.4
The Authority's Right to Investigate: Following a complaint, or of its own initiative, the
Authority is empowered to investigate compliance by a Licensee with its obligations
under the Law, the Implementing Regulations, Rules and Procedures or the
Licence or to take enforcement action against a Licensee.
29.5
Actions pending resolution of a dispute: Licensee shall not disconnect or otherwise change
any of the services then being provided to a Consumer during the time for which they
are the subject of a dispute with that Consumer, without an interim or final
determination from the Authority.
ARTICLE 30 - MEDIATION
30.1
Submission of dispute: Without prejudice to the Law, in relation to a dispute between

Licensees, or between a Licensee and a Consumer, the parties to the dispute may
submit a request for Mediation to the Authority. No request for Mediation may be
made under this Article 30 until the parties to the dispute have negotiated in good faith
for a minimum period of twenty (20) Business Days and have been unable to reach
agreement.
30.2
Information in submission: One or more of the parties to the dispute shall submit the request
for Mediation. The request shall set out the following information:
30.2.1
a statement that a dispute exists between the parties listed in the request;
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30.2.2
a signed statement from each of the parties to the dispute that they agree to
submit the dispute to the Authority for mediation;
30.2.3
a statement of facts and issues upon which the parties agree;
30.2.4
a statement of facts and issues upon which the parties do not agree;
30.2.5
a statement from each party setting out its position on each disputed fact and
issue;
30.2.6
a statement from each party setting out its position on the other partys position
on disputed facts and issues;
30.2.7
a statement setting out the dispute resolution approach sought from the
Authority;
30.2.8 a statement setting out a proposed timetable for resolution of the dispute.
30.3
Response to submission: Within fifteen (15) Business Days of receipt of a request, the
Authority shall advise the parties in writing whether it has:
30.3.1
agreed to proceed by way of Mediation;
30.3.2
accepted the proposed dispute resolution approach;
30.3.3
accepted the proposed timetable for resolution.
The Authority may refuse a request for Mediation. The Authority may approve a
request for Mediation but not approve the proposed dispute resolution approach or
timetable. The Authority in consultation with the parties shall propose an approach
and timetable for Mediation as well as the method for compensating the Authority for
its incurred expenses. In case of disagreement on the Mediation approach and
timetable, the Authority may decide to refuse the request for Mediation.
30.4
Procedure for mediation: Where the Authority approves a request for Mediation and
decides upon a Mediation approach and timetable, the Authority shall appoint a Person
or Persons to conduct the Mediation and specify the procedure and the schedule to be
followed. The procedure may include one or more of the following:
30.4.1.
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a process in which the Person or Persons appointed by the Authority

mediates a mutually acceptable resolution of the dispute;
30.5
30.4.2
a process in which the Person or Persons appointed by the Authority is/are

mandated to request that the parties to the dispute submit final offers, and the
mandate to select one of the final offers;
30.4.3
a process in which the Authority makes a Decision to resolve the dispute, with
or without the steps set out in Article 30.4.1 and Article 30.4.2 or other
procedures;
30.4.4
a requirement that the parties agree to be bound by the final agreed outcome of
the Mediation.
Confidentiality: Information submitted to the Authority as part of a Mediation shall be

treated as confidential in accordance with the provisions on confidentiality of information
in Article 4.7.
ARTICLE 31 - DISPUTE RESOLUTION PROCESS BY THE AUTHORITY

31.1
Refusal to hear dispute: Where a dispute is referred to the Authority under this Article 31,
the Authority may in its discretion notify the Person referring the dispute that it shall
not hear the dispute, including the reasons for its such determination, which may include:
31.1.1
the dispute appears to the Authority to be frivolous or vexatious;
31.1.2
the dispute does not relate to a matter in respect of which the Authority may
exercise its enforcement function pursuant to the Law or the Authoritys
founding Charter;
31.1.3
other processes or powers are available that would be more suitable to deal with
the matters in dispute;
31.1.4
in the case of a complaint by a Consumer, the Consumer has not taken such
steps as appear to the Authority to be reasonable to give the relevant Licensee
an opportunity to resolve the complaint; and
31.1.5
the matter complained of is substantially connected to a matter subject to an

existing dispute before the Authority, the Committee, the Board of
Grievances or any other competent authority in the Kingdom.
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Where the Authority refuses to hear a dispute, the relevant party may seek to refer the matter to
the Committee in accordance with its rules and procedures as set out in (Annex 1).
31.2
Submission of information: Where the Authority does not give a notice pursuant to Article
31.1, the Authority shall establish, in each proceeding, the time limits for each party to
the dispute to submit information to the Authority and shall notify these to the parties to
the dispute. In establishing time limits, the Authority shall take into account:
31.2.1
the complexity of the information to be submitted; and
31.2.2
the ease with which the information can be obtained by the Person required to
submit it.
The parties to the dispute shall provide information to the Authority in accordance
with such time limits and shall admit all facts and issues set out in the original
application for dispute resolution with which the respondent agrees. If a party does not
file an answer within the time period established pursuant to this Article 31.2, the
Authority may make a determination on the application on the basis of the information
available to it and information provided to it by the other parties to the dispute.
31.3
Determination: Following expiry of the time limits for filing of information with the
Authority:
31.3.1
no further documents may be submitted except by a request of the Authority;
31.3.2
the Authority may make a determination on the dispute on the basis of the
written materials before it, or may require further information from one or both
of the parties.
The Authority shall communicate its determination on the application to all parties to
the dispute, promptly after the determination is made and shall indicate that the
determination may be referred by the Authority at the request of one or more of the
parties to the dispute to the Committee in accordance with, and subject to the
timescales set out in, the procedures of the Committee as described in Article 31.4.
References by the Authority under this Article 31.3 shall be accompanied by an
explanatory memorandum in accordance with Article 32.
31.4
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Disputes Resolution Committee procedures: The procedures of the Committee as at the date of
these Implementing Regulations are set out in (Annex 1). Such procedures may be
amended by the Board from time to time.
31.5
Officers or employees with interest in proceedings: No officer or employee of the Authority who
has any financial interest or other interest in the outcome of the proceedings may be
involved in any determination of the Authority, and any such officer or employee shall
not participate in the deliberations of the Authority.
31.6
Fees for dispute process: The Authority may require payment of a fee to be paid by any party
to the dispute to the Authority in connection with the costs of investigation and
resolution of the dispute by the Authority.
ARTICLE 32 - EXPLANATORY MEMORANDUM

32.1
32.2
Explanatory memorandum: The Authority shall provide an explanatory memorandum to

the Committee with (or within a reasonable period following) each of the following
circumstances:
32.1.1
where the Authoritys determination of a dispute is referred by the Authority

pursuant to Article 31.3;
32.1.2
where the Authoritys Decision on a Violation is referred by the Authority

pursuant to Article 28.1.3(d);
32.1.3
where the Authoritys Decision on refusal of a Licence, or the renewal of a

Licence, is referred by the Authority pursuant to Article 28.1.3(a);
32.1.4
where the Authoritys Decision in relation to a custodianship action in

accordance with Article (15.2) of the Law is referred by the Authority pursuant
to Article 28.1.3(b).
The Authoritys explanatory memorandum to the Committee shall be submitted for the
purposes of assisting the Committee and shall set out:
32.2.1
the facts relating to the dispute, Decision or Violation as determined by the

Authority;
32.2.2
the reasons for the Authoritys findings in relation to the dispute, Decision or
Violation (as the case may be);
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82
32.2.3
recommendations on any interim measures by the Committee pending final

resolution by the Committee or, in the case of a further appeal, to the Board of
Grievances;
32.2.4
in the case of a custodianship action, such further matters as are specified in the
Custodianship Action Rules and Procedures set out in (Annex 2)as may be
determined by the Board from time to time;
32.2.5
any other matters the Authority considers appropriate for the Committee to
take into account.

ARTICLE 33 - INTRODUCTION
33.1
This Part 2 sets out provisions relating to enforcement actions by the Authority to
enforce the provisions of the Law, Charter, the Implementing Regulations and the
Licences by, in summary:
33.1.1
taking action against such contraventions pursuant to Article 34;
33.1.2
determining the existence of a Violation and an appropriate sanction, subject

to review by the Committee, pursuant to Article 34.4.3;
34.1.3
investigating alleged Violations pursuant to Article 35.
ARTICLE 34 - CONTRAVENTIONS
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34.1
Monitoring of compliance: On its own initiative, or upon receiving a complaint from any
Person, the Authority may, for the purposes of carrying out its duties and functions
under the Law or the Charter, inquire into and investigate whether a Person (including a
Licensee) is carrying out its obligations under the Law, the Implementing
Regulations, Rules and Procedures, Decisions or the terms and conditions of any
Licence held by such Person. The Authority may require any Person (including a
Licensee) to provide such information it requires to determine whether a contravention
has occurred, or is occurring, and where it considers appropriate may require such a
Person to meet with the Authority to discuss the matter.
34.2
Notice of Invocation: The Authority may by notice to the concerned Person invoke the
enforcement procedures in this Article 34. The notice invoking the procedures shall:
34.2.1
indicate the activity complained of and the relevant provisions of the Law,
Implementing Regulations or Rules and Procedures or Licence
prohibiting the activity;
34.2.2
indicate that the Authority proposes to make a Decision against the concerned
Person under this Article 34, subject to consideration of any representations by
that Person;
34.2.3
indicate whether in the Authoritys view there has also been a Violation, and
any sanction the Authority proposes (subject to review by the Committee in
accordance with the procedure set out for a reference by the Authority under
Article 31 above) in relation to such a Violation, subject to consideration of
any representations by that Person;
34.2.4
provide details of any proposed Decisions to order the Person to do anything

the Person is required to do or forbid the Person from doing anything that the
Person is prohibited from doing under or pursuant to the Law, or the Charter,
these Implementing Regulations, the Rules and Procedures or any
Licence held by such Person;
34.2.5
indicate a time period being not less than fifteen (15) Business Days within
which such Person may make written representations to the Authority as to
why such a Decision should not be made, or should be made in a form other
than that proposed.
34.3
Final Decision: The Authority shall consider any representations received in accordance
with Article 34.2 before making a final Decision. Where the Authority is satisfied that
the Person is contravening or has contravened the Law, the Implementing
Regulations, the Rules and Procedures, or its Licence, the Authority may by notice
to the Person issue a final Decision requiring the Person to do, or not to do, such
things for the purpose of rectifying the contravention within a specified period. The final
Decision shall be effective five (5) Business Days from issue of the Decision, or such
later date as may be specified in the notice.
34.4
Enforcement action: The Authority may take the following action as the Authority
considers appropriate, taking into account the matters set out in Article 34.5, where by
final Decision it finds there to have been a contravention of the Law, the Charter, these
Implementing Regulations, the Rules and Procedures or a Licence:
34.4.1
issue a Decision to the contravening Person as it considers appropriate, which

in the case of a Licensee may include amendment, suspension or revocation of
the relevant Licence;
34.4.2
issue a Decision to other Licensees requiring them to take such steps in

relation to their provision of electricity services to the contravening Person as
the Authority considers appropriate;
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34.4.3
34.4.4
34.5
86
Refer the matter to the Committee requesting any of the following actions as
may be appropriate:
(a)
order the cessation of any Electricity Activity by the contravening

Person;
(b)
impose a penalty on the contravening Person where it determines that

there has been a Violation and shall state the amount of the penalty
imposed and specify a date, being not less than forty (40) Business Days
from the date of the Decision, within which the Person is to pay the
penalty to the Authority;
(c)
where the Authority concludes that the Violations constituted an

ongoing Violation or a series of repeated or related Violations, assess a
penalty for:
(i)
each day that the Violation continues after the date on which the
Decision requires that it should cease; and
(ii)
each separate Violation that occurs after the date on which the
Decision requires that they should cease;
invoke the arrangements set out in Part 3.
Considerations: The matters to which the Authority shall have regard in considering the
appropriate response to a contravention under Article 34.4 shall be as follows:
34.5.1
the Authoritys duties and objectives under the Law and the Charter;
34.5.2
the need to ensure and incentivize compliance with the Law, the Charter,
Implementing Regulations, the Rules and Procedures and Licences;
34.5.3
the impact of the contravention on Consumers and the Electricity Industry;
34.5.4
whether the contravening Person achieved any gain, financial or otherwise,

from the contravention;
34.5.5
whether the contravening Person has committed similar contraventions in the past;
34.5.6
the duration and seriousness of the contravention;
34.5.7
any mitigating or aggravating factors.
34.6
Interim Decisions: The Authority may make any interim Decision it deems appropriate
pending a final Decision on a matter being considered by it under this Article 34. Such
interim Decisions may provide for steps to be taken to conserve the position of Persons
affected by the matter under consideration until a final Decision is issued. The issue of
an interim Decision shall be without prejudice to the rights and powers of the Authority
in relation to the issue of a final Decision.
34.7
Non-compliance with interim or final Decision: Where a Person has failed to comply with an
interim or final Decision, the Authority may seek the assistance of any other public
authorities and take such further steps to enforce the Decision as it considers necessary
and may also refer the matter to the Committee for further action.
34.8
Guidelines: The Authority may publish in Rules and Procedures further guidelines on
the process or relevant considerations in relation to the exercise of its powers under this
Article 34 and shall make such guidelines available on its website.
34.9
Publication of Decision: The notice of invocation and the contravention Decision shall be
made available by the Authority in such manner as it considers appropriate, to draw the
attention of other Persons affected or likely to be affected by the contravention.
ARTICLE 35 - INVESTIGATIONS OF VIOLATIONS

35.1
Initiation: The Authority may initiate an investigation where it believes there has been a
Violation of the Law as described in Article (14) of the Law and shall conduct such an
investigation in accordance with this Article 35.
35.2
Provision of information: For the purposes of an investigation under this Article 35, the
Authority may require by notice in writing any Person to produce such information
available to that Person which the Authority considers relevant to the investigation,
within such time period as may be specified in the notice.
35.3
Failure to provide information: Where any information is not provided in accordance with a
notice under Article 35.2, the Authority may:
35.3.1
require such Person to provide an explanation for the failure to provide the
information;
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35.3.2
35.4
Entry into premises: Any employee of the Authority authorized by name in writing by the
Governor of the Authority in accordance with Article (13.7) of the Law (Authorized
Officer) may enter such premises as are specified or described in the authorization in
connection with a Violation investigation in accordance with the provisions of Articles
35.5 to 35.7.
35.5
Notice of proposed entry: The Authorized Officer shall, subject to Article 35.6, only be
entitled to enter premises where he has given at least two (2) Business Days notice to
the occupier of the premises indicating:
35.6
35.7
88
take such failure to provide information into account in any explanatory

memorandum submitted to the Committee in relation to the alleged Violation.
35.5.1
the proposed time of entry onto the premises;
35.5.2
the subject matter and purpose of the investigation;
35.5.3
the nature of the alleged Violation.
Exceptions to notice requirements: Article 35.5 shall not apply:

35.6.1
where the Authorized Officer has taken all reasonable steps to give notice but
been unable to do so;
35.6.2
where the authorization by the Governor of the Authority under Article 35.4
provides that there are reasonable grounds for suspecting that if notice was
given, documents or information required would be concealed, removed,
tampered with or destroyed.
Duties and powers of Authorized Officer on entry: An Authorized Officer exercising a power
of entry to premises shall identify himself by producing a copy of the authorization and
an identification card or other official document. The Authorized Officer may:
35.7.1
be accompanied by such other Persons as he considers essential;
35.7.2
require any Person on the premises to produce any document or information

he believes relevant to investigation and to assist in locating and identifying
such document or information;
35.7.3
take copies of any document or information;
35.7.4
take possession of such documents or information where it appears to him to

be necessary to prevent interference with them or where it is not reasonably
practicable to take copies.
The Authorized Officer shall not interfere with the premises more than is reasonably necessary
to achieve the objectives of the investigation.
35.8
Obstruction on investigation: Where a Person hinders or obstructs an investigation under

this Article 35 the Authority may refer the matter to the Committee for imposition of
sanctions for such Violation.
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ARTICLE 36 - PROCUREMENT OF ADDITIONAL GENERATION CAPACITY

36.1
Where it appears to the Authority, on the basis of information provided to it by

Licensees or otherwise, that there is insufficient generation or network capacity existing,
under construction or planned to meet the projected demand for electricity at any time in
the future, the Authority pursuant to Article (4.2) of the Law may direct an entity of its
own choice (which may be the holder of a Transmission Licence) to invite tenders for
such further capacity as, in its opinion, will meet any such projected shortfall in supply.
The Authority shall take such measures to ensure there is adequate finance for the
provision and use of any capacity tendered for or other measures it directs pursuant to
this Article 36.
36.2
Where the directed entity conducts a tender under Article 36.1, it shall carry out the
tender and select the successful bidder in accordance with the Authoritys direction and
on the basis of criteria determined by the Authority for the purposes of such tenders.
ARTICLE 37 - CONTINUITY OF SERVICE

37.1
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The Authority shall make necessary arrangements to ensure continuity of service to

Consumers in the event of actual or anticipated failure to continue to carry out licensed
Electricity Activities by Licensee. The Authority shall issue Decisions to such a
Licensee for this purpose including, but not limited to, the following:
37.1.1
a Decision to take any necessary corrective actions to enable the Licensee to

carry out the licensed Electricity Activity in the manner specified in its
Licence;
37.1.2
an interim arrangement pending an undertaking that carries out the licensed

Electricity Activity including appointing administrators, liquidators and (for
the duration of the interim arrangement) additional directors;
37.1.3
a Decision to invoke the powers under Article (15.2) of the Law in accordance
with Article 38 below and the Custodianship Action Rules and Procedures set
out in( Annex 2)as may be amended from time to time .
ARTICLE 38 - APPLICATION OF CUSTODIANSHIP ACTION

38.1
Pursuant to Article (15.2) of the Law, the Authority may, in urgent and necessary
situations, and in accordance with the Custodianship Action Rules and Procedures
stipulated in (Annex 2) and approved by the Board pursuant to Article (4.6) of the Law,
apply the Custodianship Action Rules and Procedures on the activities of any Person
who commits a Violation that necessitate such action.
38.2
The Custodianship Action Rules and Procedures may be amended by Decision of the
Board from time to time.
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ARTICLE 39 - POWERS
The Governor shall exercise the functions and powers entrusted to the Authority in these
Implementing Regulations with the exception of those specifically stipulated for the Board.
The Governor may delegate any of these functions and powers to whomever he deems fit.
ARTICLE 40 - EFFECTIVE DATE OF THE IMPLEMENTING REGULATIONS
40.1
These Implementing Regulations shall come into effect on the date of their
publication in the Official Gazette.
ARTICLE 41 - AMENDMENTS
41.1
The Authority shall review these Implementing Regulations and may by Decision of
the Board update them from time to time to the extent relating to the Authoritys
functions under the Law and the Authoritys Charter.
41.2
The Authority may consult with such Persons as it considers appropriate in relation to
any proposed amendments to these Implementing Regulations.
The Authority shall publish Decisions to amend these Implementing Regulations in

accordance with the approved procedures for the publishing of Rules, Regulations and Decisions.
It shall also publish them on its official website.
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ANNEX 1
RULES AND PROCEDURES OF THE ELECTRICITY INDUSTRY DISPUTES
RESOLUTION COMMITTEE
ANNEX 1
RULES AND PROCEDURES

OF THE ELECTRICITY INDUSTRY DISPUTES RESOLUTION COMMITTEE
ARTICLE 1
The Committee resolves cases arising out of the application of the Electricity Law, the
Charter or their Implementing Regulations including cases between the Licensees and
Consumers, cases raised against the Authority or those which the Authority files against
violators of the Law , the Charter or their Implementing Regulations.
ARTICLE 2
The Committee elects from among its members its Vice-Chairman who shall act for the
Chairman in his absence.
ARTICLE 3
A meeting of the Committee is properly constituted when a majority of its members are present,
provided the Chairman or the Vice-Chairman is among the members present. The Committee
meetings shall be convened at the Authority's headquarters or at any other place selected by the
Committee.
ARTICLE 4
Rules pertaining to removal of judges set out under the law shall apply to members of the
Committee.
ARTICLE 5
In addition to the rules set out in the Law, the Authority's Charter and their Implementing
Regulations, the Committee shall apply procedures, scheduling and rules stipulated in the
Judicial Proceedings Statute and the Penal Procedures Statute in all situations not specifically
covered by the Rules and Procedures of the Committee.
ARTICLE 6
Claims shall be submitted directly to the Chairman of the Committee on the special form which
is designed for that purpose.
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ARTICLE 7
Violations of the Law, the Authority's Charter or their Implementing Regulations shall be
recorded and investigated by the relevant department in the Authority whose duties shall be:
7.1 to enter into legally licensed facilities, carry out investigations and review the books and
records of the service providers or the Consumers, the related documents and all
information and data necessary to uncover the violation and secure a copy of the same
under a written and reasoned authorization issued by the Governor or a person
authorized by him;
7.2 to prepare a report for each violation stating the name of the facility, description of the
Violation, and all procedures taken during the investigation, duly signed by the person
who performed the investigation;
7.3 to investigate any violation of the Law, the Authority's Charter or their Implementing
Regulations as well as to investigate disputes referred to the Committee.
ARTICLE 8
The Governor may depute whomever he considers qualified either from among the employees of the
Authority or from other persons not employed by it to undertake the functions of prosecution on
behalf of the Authority against violators of the Law, the Authority's Charter or their Implementing
Regulations. Such a person may also represent the Authority in law suits brought against it.
ARTICLE 9
An investigator shall submit to the Governor, on the second day following completion of the
investigation, the findings of his investigation including evidences of culpability, and testimonies
as well as his own views. Upon the Governors approval of the findings of the investigation and
the procedures followed by the investigator, all the documents shall be referred to the
Committee, together with the claim journal, by the person charged with this task.
ARTICLE 10
If the Committee receives a claim that does not fall under its jurisdiction, it shall dismiss that
claim while stating the reasons for its decision.
ARTICLE 11
Until a case is finally adjudicated, the Committee may issue interim decisions in issues that are
urgent, or that may become urgent during the proceedings.
99
ARTICLE 12
The full Committee may proceed to inspect the site of a violation, or it may depute one of its
members or whomever it selects to undertake the inspection.
ARTICLE 13
The Committee may bring into the dispute under its consideration whomever it wishes to
include pursuant to the Judicial Proceedings Statute. Other parties may also intervene in the
dispute prior to issuance of the Committee's Decision, if the Committee determines that such
parties may have an interest in the case, provided that the other litigants are duly notified.
ARTICLE 14
The Committee may opt to obtain advice from professional experts or from the Authority's
employees on issues under its consideration in accordance with the stipulated rules of the Judicial
Proceedings Statute.
ARTICLE 15
The Committee, at its own initiative or at the request of one of the litigants, may call any witness
and request government agencies and departments to provide documents related to the claim.
ARTICLE 16
Proceedings of all hearings before the Committee shall be recorded and minutes taken.
ARTICLE 17
The Committee may order remedy of a violation of the Law, the Authority's Charter or their
Implementing Regulations and impose a penalty not exceeding the maximum limit prescribed
by law; it may order revocation or termination of the contract, cancellation of the licence, or
cessation of the activity for a limited period. It may also vacate, amend or endorse the
Authority's decisions pertaining to the dispute. Furthermore, the Committee may order
compensation for damages resulting from the Violation, and payment of lawyers charges and
fees of experts and specialists that may be retained by the Committee, all in accordance with the
rules set out in the Judicial Proceedings Statute.
ARTICLE 18
Decisions of the Committee shall be taken by a majority of votes of its members. In the case of
a tie, the side with which the Chairman casts his vote shall prevail. The record of the
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Committee's minutes shall reflect whether the decision was taken unanimously or by a majority
of votes and the minority views shall also be recorded in the minutes.
ARTICLE 19
Rules pertaining to the correction and interpretation of judgements as stipulated in the Judicial
Proceedings Statute shall apply to the Committee's decisions.
ARTICLE 20
In the absence of a rule or text in the statutes and regulations applicable to the Violation or the
incident under its consideration, the Committee shall deduce its ruling from the principles of
Islamic Jurisprudence (Sharia), common practices, and the principles of fairness.
ARTICLE 21
21.1
The Committee shall look into the supervisory custodianship action imposed by the
Authority on the activity after its referral from the Authority within the legal period. The
Committee may also look into the action at the request of the Licensee on whose
activity the custodianship has been imposed, before referral of papers from the Authority
in accordance with the Implementing Regulations of the Law.
21.2
Based on the request of the Licensee, the Committee may order removal of the
custodianship imposed on him by the Authority. Such action by the Committee,
however, does not abridge the Authority's right to prosecute the Violation.
21.3 If the Committee is satisfied with the Authority's reasons for imposition of the
custodianship, it shall allow its continuation under a decision issued by the Committee
which shall be appealable if the opposing side is dissatisfied.
21.4
In ordering the custodianship initially or in ordering the continuation of the supervisory

custodianship, the Committee shall adhere to the rules set out for the imposition of
judicial custodianship stipulated in the Judicial Proceedings Statute.
ARTICLE 22
Decision of the Committee may be appealed before the Board of Grievances within sixty (60)
days from the date of its notification to the party concerned, in accordance with the rules
established in the Judicial Proceedings Statute.
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ARTICLE 23
A petition for review of the Committee's decision may be made pursuant to the rules and
procedures stipulated in the Judicial Proceedings Statute provided sufficient justifications were
made for the review.
ARTICLE 24
With the exception of urgent decisions, the Committee decisions may not be implemented until
they become final through either their acceptance by the parties to the dispute, the expiry of the
period set out for making an appeal without submitting an appeal, or approval of the decision by
the Board of Grievances .
ARTICLE 25
An interested person, not a party to the litigation before the Committee, may object to the
implementation of the decision, in accordance with the rules of the Judicial Proceedings Statute.
ARTICLE 26
The Committee is empowered to approve arbitration documents for disputes within its
jurisdiction pursuant to the Arbitration Law.
ARTICLE 27
When the Committee decision becomes final, the Chairman of the Committee shall
communicate it to the government agency concerned with the implementation of the judicial
orders as well as to the Governor of the Authority.
ARTICLE 28
The Governor of the Authority shall appoint the Secretariat of the Committee which shall
consist of a Secretary and a number of employees who shall provide administrative and
technical support for the work of the Committee.
The following tasks are among the duties of the secretariat:
28.1 recording the minutes of the Committee meetings, organizing the meetings, and
receiving visitors;
102
28.2 coordinating with interested parties both inside and outside the Authority ;
28.3 providing typing services, keeping files and records of the Committees decisions
and rulings of the Grievances Court;
28.4 the Secretary shall have the authority of directly communicating with administrative
agencies and departments in matters assigned to him by the Chairman of the
Committee.
ARTICLE 29
The Authority's Board of Directors shall provide a budget for the Committee within the
Authority's budget, which includes remunerations of the Committee's members, expenses of
its Secretariat, and such other expenses as may be required for the working of the Committee
and the Secretariat, including expenses for expertise and investigations.
ARTICLE 30
The monthly remuneration of the Committee members and its Chairman shall be determined by
a decision of the Authority's Board of Directors.
ARTICLE 31
The Committee shall publish annually a report listing the number of cases reviewed, the number
of decisions issued, the average schedule of the Committee and such other data as may be
necessary to achieve transparency.
ARTICLE 32
The Committee shall publish each year the principles it adopted.
ARTICLE 33
These by-laws shall be published in the Official Gazette and shall become effective thirty (30)
days thereafter.
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104
ANNEX 2
RULES AND PROCEDURES FOR APPLICATION OF CUSTODIANSHIP
ANNEX 2
RULES AND PROCEDURES

FOR APPLICATION OF CUSTODIANSHIP
1. INTRODUCTION
These Rules and Procedures for application of custodianship are issued pursuant to Article
(4.6) and Article (15.2 ) of the Law. They shall be invoked for urgent and critical cases
where the Authority exercises its powers according to Article (15.2) of the Law which
empowers it to apply custodianship on the activity of any Person who commits a
Violation .
2. EXPLANATIONS
2.1
A reference to an article is, unless the context otherwise requires, a reference to an article
of these Rules and Procedures.
2.2
The definitions defined in the Law and its Implementing Regulations shall have the
same meaning in these Rules and Procedures, unless the context otherwise requires.
3. PRECONDITIONS FOR THE EXERCISE OF POWERS

3.1
The Authority has no right to exercise its powers stipulated in Article (15.2) of the Law
unless the following conditions are achieved:
3.1.1. the powers shall be exercised against the activity of a Person against whom it is
proved, according to a decision issued by the Authority pursuant to Article 34 of
the Implementing Regulations, that he committed a violation ("affected
Person");
3.1.2. the decision, mentioned in 3.1.1 above, is referred to the Committee
immediately during a period not exceeding thirty (30) days from the date of issue;
3.1.3. that the Authority has studied the pertinent circumstances relating to the case and
has reached to the conclusion that, in the framework of the case, it is necessary to
activate the granted powers, pursuant to Article (15.2) of the Law, and that taking
this course is the best option from the other powers and procedures available to
the Authority to handle the case, or the creditors of the affected Person,
according to the intervention arrangements agreed upon between them;
106
3.1.4. if the affected Person is a Licensee, and the Authority deems that cancellation
or suspension of his license is a proper punishment for such violation, this
condition shall apply, in (but is not limited to) the following situations:
a. where the Licensee was a Network Licensee and was intending to
cease his Electricity Activity relating to transmission or distribution,
as per the case;
b. where the Licensee was a Network Licensee and his performance
was deteriorating substantially, or he was unable to adhere to the
performance standards adopted according to his License;
c. that the Licensee was deliberately failing to adhere to his obligations
as per the Law, its Implementing Regulations or License;
d. that the Licensee was deliberate in providing the Authority with
incorrect or distorted information which the Licensee perceived (or
should perceive);
e. that implementation of Licensee's bankruptcy procedures have
started or are about to start;
f. where the financial position of the Licensee renders him unable to
meet his full responsibilities pursuant to the Law, its Implementing
Regulations or License, and the exercise of Authority's powers,
pursuant to Article (15.2) may help the Licensee in continuing his
adherence to those obligations;
g. where Violation of any prerequisite on the part of the Licensee may
clearly endanger License cancellation;
h. where the Licensee was a Generation or Cogeneration Licensee,
and was intending to cease all or a major part of his production
activities, and this cessation would have affected the security of supply
and safety of the electricity network in the Kingdom;
3.1.5. where the Affected Person was a person other than the Licensee, and the Authority
perceived that cessation of Electricity Activity to that Person, or its suspension, was a
reasonable penalty for the Violation;
107
3.1.6. that the cessation or cancellation or suspension of Electricity Activity or Licence, from
the Authority's viewpoint, may have tangible effect on the public interest or on the
supply of electricity supply to the Consumers in the Kingdom or any part of it, or may
have tangible effect on the safety of the electricity system or equipment or any Person;
3.1.7. that the Authority, according to a written decision, appointed a Person or Persons
("Temporary Operator") for implementing the arrangements stipulated in the
Decision, and what changes take place from time to time according to another future
Decision ("Decision to apply Custodianship").
4. NOTICE
4.1.
The Affected Person should be notified, in writing, of the Custodianship Application

Decision, outlining:
4.1.1. that the decision has been taken pursuant to Article (15.2) of the Law;
4.1.2. the effective date for the implementation of the arrangements to be applied
according to the decision which shall not be less than five (5) working days from
the date of notice;
4.1.3. the information or assistance to be presented by the recipient of the notice to the
Temporary Operator (before the validity date of the decision and later) to
facilitate implementation of arrangements contained in the Decision;
4.2.
other Persons should be notified of the Custodianship Application Decision, in a

manner the Authority thinks proper, taking into account the directives relating to
publishing decisions informing other Affected Persons of the Decision.
5. DUTIES OF THE INTERIM OPERATOR AND HIS POWERS

5.1.
108
The Temporary Operator shall adhere to the frame of administrative arrangements

stated in the Custodianship Application Decision and any amendments made to it
from time to time, and assume its duties according to the following:
5.1.1. take possession of the assets of the Affected Person, and if the Affected Person
is a corporate entity, appoint who may run the administration including specific
persons from the Affected Persons personnel;
5.1.2. operate the assets of the Affected Person in a manner which ensures continuity
of the Electricity Activity, guaranty safety of electrical systems and their security,
and realize any other objectives specified in the Custodianship Application
Decision;
5.1.3. implement Electricity Activities beneficial to the Affected Person and on his
account, and the Affected Person shall bear the expenses and risks;
5.1.4. transfer the net income to the Affected Person after deducting costs and
expenses for arrangements implemented pursuant to the Custodianship
Application Decision.
6. DUTIES OF THE NOTIFIED PERSONS
6.1.
No Person, who is notified of the intention of the Authority for exercising the
application of custodianship, or notified of the effective Custodianship Application
Decision, shall undertake any of the following procedures without the prior written
permission of the Authority:
6.1.1. exercise, or attempt to exercise, any right available to him to terminate or cease
any contract necessary for the performance of Electricity Activities pertaining
to the Affected Person;
6.1.2. undertake any administrative, liquidatory or insolvency procedures. He shall
strictly adhere to Authority's Decisions and reasonable directives issued by the
Interim Operator during the period of validity of the Custodianship Decision
related to the Affected Person.
7. REFERRAL TO THE DISPUTES RESOLUTION COMMITTEE

7.1.
The Authority shall submit to the Committee, within thirty (30) days of the date of
issue, a copy of the Custodianship Application Decision, along with an explanatory
memorandum stating:
109
7.2
7.1.1
details of the relevant Violation and reasons for taking the Decision;
7.1.2
expected impacts on the Affected Person, Electricity Industry and the

Consumers from the implementation or non-implementation of the
arrangements proposed pursuant to Article (15.2) of the Law;
7.1.3
details of other options available to the Authority and reasons for their
unsuitability;
7.1.4
expected period of the arrangements;
7.1.5
any other information the Authority may think pertinent to the case in
question.
The disputes shall be dealt with in accordance with Chapter 7 of the Implementing
Regulations and Committee's Rules and Procedures .
8. TERMINATION OF ARRANGEMENTS
8.1.
Following issue of Custodianship Application Decision, the Authority shall monitor

whether or not the circumstances which prompted the issuance of the Custodianship
Application Decision are still present. The Custodianship Application Decision
shall remain effective from the date of its implementation pending any of the following:
8.1.1
8.1.2
Date and time specified in a written Decision from the Governor terminating
the arrangements, where the Authority is satisfied that the circumstances
leading to the issue of the original Decision no longer prevail;
a resolution by the Disputes Resolution Committee, pursuant to Article 7.1
above and Article (15.2) of the Law encompassing the judgment:
(a) necessity for the termination of the arrangements, or
8.2
110
(b) change of arrangements with other arrangements as stipulated in the

judgment.
If the judgment of the Committee obligates change of arrangements implemented
pursuant to the Custodianship Application Decision, the Authority may implement
those changes pursuant to the provisions of the Law and its objectives.
111
112

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Kingdom of Saudi Arabia

Electricity & Cogeneration Regulatory Authority

The Electricity Law's

Kingdom of Saudi Arabia

Electricity & Cogeneration Regulatory Authority

For further information about the Authority please contact :

C Electricity and Co-Generation Regulatory Authority, 2007

L.D. No. 1428 / 3666

ALL RIGHTS RESERVED

Kingdom of Saudi Arabia

Electricity & Cogeneration Regulatory Authority

CHAPTER ONE PRELIMINARY PROVISIONS

SOME OF ITS REQUIREMENTS .............................................................

REVOCATION, AND WITHDRAWAL ...................................................

ARTICLE 13 CONNECTION AND USE OF SYSTEM OFFERS ................................ 40

PART 3 RELATIONSHIP OF LICENSEES WITH USERS AND CONSUMERS

PART 4 ACCESS TO PROPERTY

CHAPTER FOUR TARIFFS

CHAPTER FIVE COMPETITION AND ANTI-COMPETITIVE CONDUCT

ARTICLE 25 REMEDIES FOR ANTI - COMPETITIVE PRACTICES ...................... 61

CHAPTER SIX RESTRUCTURING OF THE ELECTRICITY INDUSTRY

CHAPTER SEVEN DISPUTES AND VIOLATIONS

PART 3 URGENT ACTIONS

CHAPTER EIGHT FINAL PROVISIONS

CHAPTER ONE PRELIMINARY PROVISIONS

CHAPTER ONE PRELIMINARY PROVISIONS

The Ministry of Water and Electricity.

The Minister of Water & Electricity.

The Electricity & Cogeneration Regulatory Authority.

Governor of the Authority

The Board of directors of the Authority.

Founding Charter of the Electricity & Cogeneration Regulatory

Natural or juridical person.

The simultaneous production of electricity and desalinated water, or

Electricity services that Persons undertake or intend to undertake,

Any of the activities mentioned in the definition of Electricity

Having the ability to influence the fairness of decision-making or

Any Person supplied with electricity services for his own

An authorization granted by the Authority to carry out an Electricity

Every Person holding a valid Licence issued by the Authority

The sale, purchase, import or export of a product or service included

The approved monetary charge for the provision of a service or

Monetary or in-kind charge agreed upon between two or more

The circumstance in which sale and purchase of electricity are

The merger, acquisition or establishment, direct or indirect, by one or

An explanatory statement approved by the Board setting out the basis

Means a statement given by the Authority in relation to preparatory

A process in which a representative of the Authority conducts

A Licence issued by the Authority pursuant to Article 5.1.2 and a

A Licence issued by the Authority pursuant to Article 5.1.6 for the

A Licence issued by the Authority pursuant to Article 5.1.4. A

A Licence issued by the Authority pursuant to Article 5.1.1. A

A Licence issued by the Authority pursuant to Article 5.1.5 for the

A Licence issued by the Authority pursuant to Article 5.1.3. A

The registry that includes all information, Decisions, and Licences

Control in any manner that results in control in fact, whether directly

An offer prepared by any Network Licensee, concerning the

An instrument in writing made or issued pursuant to the Law, the

Further regulations adopted and updated from time to time by the

The code established by the Distribution Licensee for the operation

The code established by the Transmission Licensee for the

The dispute resolution committee for the Electricity Industry,

A station comprising of one or more units for: