1- The words and phrases contained in this Regulation shall have the meanings specified in Article (1) of the Law on Energy Supplies, issued by Royal Decree No. (M/80) dated 4/6/1444 AH.

2- The following words and phrases - wherever they appear in this Regulation - shall have the meanings indicated next to each of them, unless the context requires otherwise:

• Allocation Request: A request submitted to the Ministry specifying the type and quantity of energy required.

• Allocation Applicant: Any person who submits an allocation request to the Ministry.

• Allocated Party: The consumer who holds a valid document for energy allocation.

• Purpose of Allocation: The specified activity for utilizing the energy.

• Committee: The Energy Allocation Committee as stipulated in Article (3) of the Law.

The purpose of this allocation regulation is to organize the allocation of energy to its consumers in the areas specified in Article (2) of the Law; to achieve optimal energy uses, contribute to raising the level of the national economy and its diversification, achieve the targets of the energy mix, enhance energy efficiency levels, promote the circular carbon economy, and manage greenhouse gases, in a manner that does not conflict with the strategies approved by the Supreme Committee for Hydrocarbon Affairs and the Supreme Committee for the Energy Mix for Electricity Production and enabling the renewable energy sector.

The applicant for allocation is committed to the following:

• 1- Submitting the claim through the channels announced on the official website of the Ministry, in accordance with the approved procedures and forms.

• 2- The claim must be submitted by the applicant for allocation or by someone who has a legally recognized capacity to represent them in the allocation claim.

• 3- The claim must include the applicant's information.

• 4- The claim must include information regarding the allocation claim and its specific activity - as required by the Ministry for each claim - as follows:

  • A- The name of the activity and its scope, the sector of energy consumption, and its geographical location.

  • B- The type and quantity of energy required, and the duration required for allocation.

  • C- The feasibility study for the activity.

  • D- The financial solvency and funding plan for the activity, and the financial model of the activity.

  • E- A detailed breakdown of the stages of implementing the activity, indicating the start date of the activity, and the expected completion date if available.

  • F- A detailed localization plan.

  • G- Providing the studies required for the activity.

1- The applicant for allocation must submit any data or documents deemed necessary by the Ministry for studying and evaluating the allocation claim, within (10) ten working days from the date of notification regarding the status of the claim. If this period elapses without correcting the claim or providing the requirements, the claim will be considered canceled, and if the applicant wishes to request allocation, a new claim must be submitted.

2- The Ministry may grant an additional period to the applicant for allocation not exceeding (10) ten working days – from the expiration date specified in paragraph (1) of this article – to provide justifications for the delay, and any available alternative data or documents. In this case, the Ministry may take one of the following procedures:

• A- Accept the alternative data or information provided in the response while retaining the right to require the applicant for allocation to submit the required information at a date to be determined later.

• B- Reject the justifications for not providing the required data or information and consider the claim canceled.

3- The applicant for allocation must ensure the accuracy and validity of the data or documents when submitting them to the Ministry, and any violation of this will be considered a breach of the provisions of this regulation.

A- The Ministry shall notify the applicant for allocation of the necessary period to evaluate the allocation request and make a decision, within (15) fifteen working days from the date of completion of their request.

B- The Ministry evaluates the allocation request based on the criteria approved by the Committee and the available capacity.

C- The Ministry issues its decision to reject the allocation request, providing a clarification of the reason for the rejection.

D- The Ministry issues an allocation document upon approval of the allocation request, which shall include the details of the allocated party, the purpose of the allocation, the type and quantity of the allocated capacity, the duration of the document, and its provisions.

A- The renewal of the energy allocation document - if its duration is one year or less - shall be based on a request submitted by the allocatee at least ninety (90) days before its expiration, and the renewal request shall not be considered if less than sixty (60) days remain until the document expires.

B- The renewal of the energy allocation document - if its duration is more than one year - shall be based on a request submitted by the allocatee at least one hundred eighty (180) days before its expiration.

C- The allocatee may request an amendment to the energy allocation document during its validity period, provided that the request is justified and includes supporting documents, and the amendment request is subject to the allocation request procedures stipulated in this regulation.

Without prejudice to the penalties stated in Article (8) of the Law, the Ministry may amend the quantities of energy specified in the energy allocation document or cancel them, and notify the allocated party of this in cases of force majeure and exceptional circumstances that led to a shortage of available energy.

The energy allocation document does not constitute approval to engage in the activity required by the allocation, and the allocatee must obtain the necessary licenses and approvals to engage in the activity in accordance with the regulations in force in the Kingdom.