1. The words and phrases defined in the Electricity Law shall have the same meanings in this Implementing Regulation unless the context requires otherwise. For ease of reference, they have been included in the definitions list below, indicated by an asterisk (*). 

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

Ministry*: Ministry of Energy.

Minister*: Minister of Energy.

Authority*: Water and Electricity Regulatory Authority.

Council*: Board of Directors of the Authority.

Governor*: Governor of the Authority.

Law*: Electricity Law.

Regulation*: Regulation of the Authority.

Regulations*: Regulations issued by the Authority necessary for it to carry out its regulatory tasks in accordance with the provisions of the Law.

Electricity Activity*: An activity carried out by a person or intended to be carried out in the field of electricity, including: electricity generation, combined production from any source of energy, electricity transmission and distribution, trading in electricity, retail sale, major buyer activity, and district cooling.

Energy*: All types of hydrocarbon energy and electrical energy produced from conventional, renewable, and nuclear sources.

Trading*: Purchasing electricity in bulk from a licensed entity for resale to another licensed entity or a large consumer, or importing it from outside the Kingdom or exporting it from it.

Retail Sale*: Retail sale of electricity to consumers.

District Cooling*: Central production of thermal energy and its distribution using chilled water or any other medium through insulated pipes to cool or heat air in buildings and facilities.

Combined Production*: Simultaneous production of electricity and desalinated water or steam or both.

Dominant Position*: The ability to influence the fairness of decision-making or legitimate competition.

Major Buyer*: The licensed entity authorized to purchase energy, or any successor designated by the Authority, engaged in trading activity and proposing or participating in the proposal of generation or combined production projects as determined by the Authority in the license.

Consumer*: Any person supplied with electrical service for personal consumption.

Large Consumer*: A consumer whose electricity consumption exceeds the threshold determined by the Authority from time to time and in accordance with the regulations it issues.

Permit: A document issued by the Authority concerning preparatory works, including planning and conducting studies before commencing any activity related to services.

License*: A document issued by the Authority to a person to engage in electrical activity.

Exemption*: A document issued by the Authority to a person to engage in electrical activity without obtaining a license or exempting from one or more conditions of the license.

Licensee*: A person holding a valid license or exemption.

Tariff*: A financial charge approved for providing a service or selling a commodity within the electricity activity.

Price*: An agreed financial or in-kind consideration between two or more licensees or a licensee and a large consumer for providing a service or selling a commodity within the electricity activity.

Electricity Market*: A situation where electricity is sold and purchased based on free market factors, where the price is subject to the law of supply and demand.

Transmission Station*: The station that converts transmission voltage to another transmission voltage or to medium voltage.

Main Distribution Station*: The station that converts medium voltage to another medium voltage.

Sub-distribution Station*: The station that converts medium voltage to low voltage.

Person: A natural or legal person.

Implementing Regulation: This Implementing Regulation of the Electricity Law.

Licensee for Combined Production: The licensed person holding a combined production license.

Licensee for Retail Sale: The licensed person holding a retail sale license.

Licensee for Distribution: The licensed person holding a distribution license.

Licensee for Generation: The licensed person holding a generation license.

Licensee for Trading: The licensed person holding a trading license.

Licensee for Transmission: The licensed person holding a transmission license.

Licensee for District Cooling: The licensed person holding a district cooling license.

Rules and Procedures: Any rules, procedures, guidelines, or standards adopted by the Authority to carry out its regulatory tasks in accordance with the provisions of the Law, Regulation, or Implementing Regulation, or any other regulatory instrument.

Committee: The committee responsible for reviewing and adjudicating violations of the provisions of the Electricity Law and the regulations and conditions of the license or exemption referred to in paragraph (2) of Article Nineteen of the Law.

Generation Station: A station equipped to carry out electricity generation activities, including the land, buildings, facilities, equipment, machines, and tools used in or associated with this station.

Combined Production Station: A station equipped to carry out combined production activities, including the land, buildings, facilities, equipment, machines, and tools used in or associated with this station.

Distribution System: A system consisting of underground cables or overhead lines, stations, and electrical equipment with a specified design voltage in the relevant distribution license, for the purpose of distributing electricity from connection points with the transmission system or generation stations or combined production stations to connection points for consumers or other distribution systems. This system includes any electrical installations or equipment and meters owned or operated for the purpose of distributing electricity, and does not include any part of the transmission system.

Transmission System: A system consisting of underground cables or overhead lines, stations, and electrical equipment with a specified design voltage in the relevant transmission license, for the purpose of transmitting electricity from connection points with generation stations or combined production stations or with other transmission systems to connection points for consumers or other transmission or distribution systems. This system includes any electrical installations or equipment and meters owned or operated for the purpose of transmitting electricity, as well as the connection point with distribution systems, and does not include any part of the distribution system.

Distribution Code: The code established by the distribution licensee with the Authority's approval for the operation and maintenance of the distribution system. It covers the essential technical elements related to connection, operation, and use of the distribution system and all related installations required for the operation of the distribution system.

Transmission Code: The code established by the transmission licensee with the Authority's approval for the operation and maintenance of the transmission system, covering the essential technical elements related to measurement, connection to the transmission system, operation, and use, as well as all related devices required for the operation of the transmission system, including information requirements related to planning.

District Cooling Code: The code adopted by the Authority to obligate the licensee to meet the minimum requirements for providing district cooling service.

Mergers or Acquisitions: The act of one or more licensees merging with or acquiring another licensee, whether by purchasing its shares, acquiring its assets, merging two or more licensees into a newly created entity, or a licensee (or more) taking any action aimed at controlling - directly or indirectly - any licensee.

Control: The ability of a person to influence the decisions or management of another person, either directly through ownership of shares or assets or any securities issued by it, or indirectly through any agreement, arrangement, or otherwise, such as lending or stock options, among others.

Subsidiary Entity: A person that controls that entity, or is controlled by that entity, or any other person controlled by the person who controls the entity.

Business Day: A day when government entities and facilities in the Kingdom are officially open for business.

1- The governor shall undertake the tasks and responsibilities assigned to the authority in this Regulation, except for those explicitly stated to be undertaken by the Council. The governor may delegate any of these tasks and responsibilities to whomever he deems appropriate.

2- The governor or his delegate may issue a Decision specifying the individuals related to a person subject to the Law or related to the entities affiliated with him; who are subject to the provisions and obligations imposed – in whole or in part – under the Law on that person or the entities affiliated with him.

3- Decisions issued by the Council, the governor, the Committee, or any authorized employee in the authority must be in writing and substantiated.

4- The authority may send notices issued under the Law, regulation, Implementing Regulation, licenses, or rules and procedures via email or any other means specified by the authority, unless otherwise stated.

5- The authority may access all information, data, and relevant information and examine and study them while performing its functions and fulfilling its obligations under the Law, regulation, Implementing Regulation, licenses, or rules and procedures. The authority may also prepare reports or studies regarding this information, data, and findings from their examination and study, and it may also make these reports and studies available to the public at its discretion, unless they contain confidential information.

6- The provisions of the Implementing Regulation shall prevail in the event of a conflict between it and any provisions in the rules and procedures or any provisions or conditions of any permit, license, or exemption.

7- The authority may seek the views of the public or relevant parties before making any Decision, as required by the interest.

8- The authority shall issue the necessary rules and procedures to implement the provisions of the Law and the Implementing Regulation and to carry out its regulatory tasks, including the rules and procedures related to permits, licenses, and exemptions, the requirements for studying and evaluating them and reporting on them, and the conditions and requirements related to all of the above, as well as the forms used for this purpose.

• 1- The Authority may request any licensee to provide it with any information or data that it deems necessary to obtain, and the licensee must comply with providing the requested information and data within the timeframe specified by the Authority and in accordance with the mechanism determined by it. The Authority may use the information and data it receives in order to carry out its duties.

• 2- If the licensee is unable to provide the information or data within the timeframe specified by the Authority or is unable to provide it in accordance with the mechanism specified by the Authority, the licensee must submit to the Authority, within a timeframe determined by it, a response explaining the justifications for that, and must include in its response the information and data that can meet the Authority's requirements. In this case, the Authority may take any of the following actions:

  • A- Accept the information and data included in the response, with the Authority's right to require the licensee to provide the information and data requested by the Authority within an additional timeframe specified by it.

  • B- Reject the justifications provided by the licensee, and require it to provide the information and data requested by the Authority within the timeframe specified by it or within an additional timeframe determined by it.

• 3- The Authority may request to be provided with any information or data that it deems necessary to obtain in order to carry out its assigned tasks.

• Provision of Information by the Authority:

• 1- The Authority shall establish a database of information and data for its operations, and it has the right to allow the public to access some of the information in this database. As for the information or data not available to the public, any person may submit a claim to obtain any of it, and the Authority may provide this information or data as it sees fit, after paying the financial fee determined by the Authority. This database includes the following:

  • A- Permits, licenses, and exemptions.

  • B- Decisions of the Authority.

  • C- Approved definitions.

  • D- Guidelines, rules, and procedures.

  • E- Approved codes and standards.

  • F- Models of agreements approved by the Authority.

  • G- Financial fees for permits or licenses.

  • H- Information about the expansion plans of the electricity system and information on the expected demand for electrical services provided to the Authority by the licensees under the terms of their licenses.

  • I- Any other information or data that the Authority deems appropriate.

• 2- The availability of the information and data contained in the database referred to in paragraph (1) of this article to the public shall be achieved by any of the following:

  • A- Providing this information and data for public viewing at the Authority's headquarters or its branches and offices, or at any public locations designated by it.

  • B- Providing the information and data for public viewing through the Authority's website.

  • C- Publishing this information and data in the official gazette.

  • D- Providing this information and data through any other means of publication.

• 3- The Authority shall not allow the public or any person to access the information or data that its provider or owner has indicated as confidential, except in the following cases:

  • A- If this information or data is legally available to the public through other means.

  • B- If the information or data was already known to the Authority prior to its submission, or was submitted to the Authority – previously or subsequently – without indicating that it is confidential.

  • C- If the disclosure of the information or data is required by law or by a decision or judicial ruling.

  • D- If the disclosure of the information or data is to the employees of the Authority or the employees of any other government entity, or to consultants or experts, provided that the aforementioned parties commit to maintaining the confidentiality of this information or data, and that this information or data is necessary for the performance of the tasks assigned to them.

• 1- Any person intending to carry out preparatory works – including the preparation of plans and conducting studies – to commence any electrical activity that requires a license or exemption may submit a claim to the Authority for a permit before starting those preparatory works by filling out the form approved by the Authority.

• 2- The Authority shall issue its decision regarding the permit claim within a period not exceeding ten (10) working days from the date of completion of the information and data of the claim in accordance with paragraph (1) of this article.

• 3- The permit holder must comply with the conditions set by the Authority, which may include the following:

  • A- Providing the Authority with information about the completion of the preparatory works and progress made, according to the mechanism determined by the Authority.

  • B- Notifying the Authority of any changes in the proposed capacity for the electrical activity subject to the permit, and obtaining from it an amended permit according to the changes when the Authority deems it necessary.

• 4- The permit holder may not engage in the electrical activity subject to the permit except after obtaining the necessary license or exemption.

• 5- The granting of any permit by the Authority does not indicate any confirmation or opinion from the Authority regarding the permit holder's compliance with legal, technical, procedural, or any other requirements applicable to the permit holder, whether at the time of granting this permit or at any time during the duration of this permit or thereafter. Furthermore, this permit does not affect the permit holder's obligations to comply with any of those legal and procedural requirements or other requirements, and the permit alone does not constitute a license or an indication of the Authority's approval to issue the license, as the requirements for the applicable license at the time of issuance must be fulfilled.

• 6- The Authority may grant similar permits to other persons for the same electrical activity subject to the permit, at the same time and in the same geographical area.

• 7- The Authority provides the permit application form on its website or through any other means it deems appropriate.