The following words and phrases - wherever they appear in this regulation - shall have the meanings specified next to them, unless the context requires otherwise:

Ministry: Ministry of Water and Electricity.

Minister: Minister of Water and Electricity.

Authority: Electricity and Co-Generation Regulatory Authority.

Governor: Governor of the Authority.

Council: Board of Directors of the Authority.

Law: Electricity Law issued by Royal Decree No. (M/56) dated 20 / 10 / 1426 AH.

Regulation: Regulation for the Electricity and Co-Generation Regulatory Authority.

Person: Natural or legal.

Electricity Generation and Water Desalination: The electrical services provided by individuals or intended to be provided, including the generation of electrical energy, co-generation, transmission of electrical energy, distribution, trading, desalination of water, and its transportation to distribution points and trading.

Co-Generation: The simultaneous production of electricity and desalinated water or steam used in another production process or both.

Water Desalination: The production of desalinated water by treating saline water without simultaneous electricity generation.

Electrical Activity: Any activity related to electricity generation and water desalination.

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

License: Permission granted by the Authority to engage in electrical activity under the law and its executive regulations or this regulation and its executive and procedural regulations issued by the Authority.

Permit: A document issued by the Authority concerning preparatory works (including planning and conducting studies before commencing electrical activity).

Licensee: Any person holding a valid license issued by the Authority permitting them to engage in any electrical activity.

Trading: Selling a commodity or service within the electrical activity, or purchasing, importing, or exporting it.

Tariff: The financial consideration approved for providing a service or commodity within the electrical activity.

Price: The financial consideration or amount agreed upon between two or more parties for providing a service or commodity within the electrical activity.

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

Inter-Regional Assistance: Financial solidarity between two (or more) regions or parties. The Committee is the Electricity Industry Dispute Resolution Committee established under Article Thirteen of the Law.

1- The Electricity and Co-Generation Regulatory Authority enjoys independent legal personality and financial and administrative independence, and it carries out the tasks and responsibilities assigned to it in accordance with the law and regulations.

2- The headquarters of the Authority shall be in the city of Riyadh, and it may establish branches or offices within the Kingdom.

The Authority is responsible for regulating the electricity and water desalination industries, overseeing their performance, monitoring their activities, and coordinating among the relevant institutions and entities, as well as among the licensed individuals, to establish the necessary regulatory and procedural framework to ensure the conduct of electrical activities and water desalination at high levels of quality and reliability, at appropriate prices and tariffs that support sustainable development.

• The Authority shall undertake the following to achieve its missions:

• 1 - Issuing the executive and procedural regulations for the provisions of the Law concerning its missions, and issuing the executive and procedural regulations for the organization, provided that these regulations and procedures include the following:

  • A - The technical, environmental, operational, investment, and procedural rules.

  • B - Performance standards that must be achieved by the licensed individuals.

  • C - The rules that define the relationship between the licensed individuals and between them and the consumers.

  • D - Identifying, classifying, and updating the types of electrical activities in a manner that achieves the best means to establish the foundations of legitimate competition and limit monopolies.

  • E - The necessary regulations for licenses and permits, including the basis for their financial fees and obligations.

• 2 - Taking the necessary procedures to provide additional sources for electricity generation or dual production and the transmission and distribution of electrical energy in the event of a clear anticipated shortage in electrical energy supplies, based on what is required by the public interest.

• 3 - Taking the necessary measures to implement the provisions of the Law and the organization and their executive regulations concerning the tasks assigned to it.

• 4 - Monitoring the implementation of the regulations and rules related to management, accounting, and investment that the licensee operates under the provisions of the Law and the organization and their executive regulations.

• 5 - Working - in coordination with the Ministry, the Ministry of Petroleum and Mineral Resources, and other relevant authorities - to provide the necessary fuel for electricity generation and water desalination, and to commit to the optimal use of fuel sources and types in a manner that achieves the best return for the national economy, and to develop a long-term plan for this that includes, but is not limited to, the following:

  • A - Increasing the efficiency of production in the electricity generation and water desalination industries and their use.

  • B - Taking into account the approved standards and criteria for environmental protection.

  • C - Encouraging dual production projects for electricity and water and giving them priority in operation.

• 6 - Imposing guardianship in accordance with the provisions of the Law and calculating the rules, procedures, and controls that it establishes on the activity of any person who violates the provisions of the Law or the organization or their executive regulations or the rules and procedures issued by them.

• 7 - Issuing the necessary licenses and permits for any person engaged in electrical activities or intending to engage in electrical activities, renewing and amending them.

• 8 - Monitoring the performance of the licensees and taking measures to ensure their compliance with the conditions of the licenses or permits granted to them, including the conditions related to the quality and level of services, in a manner that establishes the foundations of legitimate competition and limits monopolies.

• 9 - Taking measures to consider the interests of the licensees and consumers in light of the requirements of the public interest.

• 10 - Enhancing efforts related to monitoring the performance of the electricity generation and water desalination industries according to the rules of work and practice therein, adopting standard performance criteria regarding the services involved in the electricity generation and water desalination industries, and monitoring against those criteria.

• 11 - Proposing amendments to the Law in coordination with the Ministry, and to the organization and submitting it according to the established legal procedures.

• 12 - Establishing the rules and procedures for controlling violations of the Law and the organization and their executive regulations.

• 13 - Deciding on matters, issues, and complaints related to the electricity generation and water desalination industries raised by the concerned parties, especially consumers or licensees or those dealing with licensees, and seeking to resolve them, without prejudice to the tasks of the Committee according to the Law.

• 14 - Cooperating with the Ministry and relevant state institutions, licensees, universities, and specialized institutes to develop a comprehensive program and media plan for rationalizing electricity consumption.

• 15 - Any other task assigned to it under the laws and regulations.

• First: The authority shall have a Board of Directors chaired by the Minister and composed of the following members:   

  • The Governor, who shall serve as the Vice Chairman.

  • A representative from the Ministry of Water and Electricity.

  • A representative from the Ministry of Finance.

  • A representative from the Ministry of Petroleum and Mineral Resources.

  • A representative from the Ministry of Commerce and Industry.

  • A representative from the Ministry of Economy and Planning.

  • A representative from the Saline Water Conversion Corporation.

  • Five members selected for their personal qualifications by a decision of the Council of Ministers based on the nomination of the Minister. Except for the Minister and the Governor, the appointment of the members of the Council shall be for a period of three years, renewable for a similar period, and only once.

• Second: The attendance allowances for the Council meetings shall be determined by a decision of the Council of Ministers.

The Council is the supreme authority of the Authority, overseeing its management and affairs, and establishing the general plans that it follows. It monitors the implementation of the laws and instructions related to the public policies of the electricity sector, dual production projects, water desalination, and the approved plans for that. The powers of the Council encompass all powers related to the tasks of the Authority as stipulated in the law and regulations, and also include, but are not limited to:

1- Approving the organizational structure of the Authority. 

2- Approving the internal, financial, and administrative regulations of the Authority, which specify the conditions and rules for appointments, as well as defining the rights and duties of the Authority's personnel and other matters related to service.

3- Approving the implementing regulation of the law concerning the tasks of the Authority and the implementing regulation of the organization.

4- Adopting regulations, procedures, rules, and technical, environmental, operational, and procedural standards.

5- Approving the work plan of the Authority and its operational plans within the framework of the general state plan.

6- Approving the draft budget of the Authority, its final accounts, the auditor's report, and the annual report in preparation for submitting them according to the regulatory requirements.

7- Deciding on the rules related to licenses, permits, services, and activities provided by the Authority, and determining the financial compensation for them.

8- Approving the rules of procedure for the Committee and its procedures.

9- Issuing controls related to imposing guardianship on the activities of any person who violates the provisions of the law or regulations or their implementing regulations or the conditions of the license.

10- Approving the purchase, sale, leasing, and renting of real estate for the benefit of the Authority in a manner that achieves its objectives.

11- Forming committees and granting them the necessary powers to accomplish the tasks assigned to them.

The Council may delegate some of the aforementioned tasks to whomever it deems appropriate according to the workflow in the Authority.

1- The meetings of the Council are held at the headquarters of the Authority, and they may be held at another location within the Kingdom when necessary. 

2- The Council meets at least four times a year upon the invitation of its Chairman, and it meets whenever the public interest requires it. The invitation must be accompanied by an agenda for the meeting, and the Chairman of the Council must call the Council to meet whenever at least four of its members request it. The validity of the meeting requires the presence of the majority of the members, including the Chairman or his deputy, and decisions are made by a majority of the votes of those present. In the event of a tie, the side that the Chairman of the meeting voted for prevails.

3- The minutes of the Council's discussions and decisions are recorded in minutes signed by the Chairman of the meeting and the attending members. The decisions that the Council deems necessary to communicate to the licensees or consumers are published in the official gazette and in any other means that the Authority finds appropriate, provided that this publication does not compromise the public interest or business secrets. The Authority shall communicate these decisions to the relevant parties directly and in an appropriate manner.   

4- A member of the Council may not abstain from voting or delegate another member to vote on his behalf in his absence. A member of the Council who objects has the right to record his objection and the reasons for it in the minutes of the Council meeting.

5- A member of the Council may not disclose any information regarding the secrets of the Authority that he has come to know.

6 - The Council may invite individuals whose information and expertise it deems beneficial to attend its sessions without granting them the right to vote.

The Authority shall have a Governor at the excellent rank, appointed by a royal decree based on the Minister's nomination. He is the executive responsible for managing the Authority and conducting its affairs, and his responsibilities are concentrated within the limits set by the law and regulations and what is decided by the Council. The Governor shall specifically exercise the following powers and duties:

1 - Supervising the Authority's personnel in accordance with the powers granted to him and as defined by the regulations.

2 - Issuing orders for the Authority's expenditures based on the approved annual budget. 

3 - Proposing financial, administrative, and technical regulations for the Authority, presenting them to the Council, and supervising their implementation after approval. 

4 - Following up on the implementation of decisions issued by the Council.

5 - Providing periodic reports to the Council on the Authority's activities, achievements, and operations.

6 - Proposing the Authority's plans and programs, presenting them to the Council, and following up on their implementation after the Council's approval.

7 - Submitting proposals and recommendations to the Council regarding the subjects stipulated in Articles (four), (five), and (seven) of this regulation.

8 - Preparing the Authority's budget draft, the annual report, and supervising the preparation of the final accounts and presenting them to the Council.

9 - Representing the Authority before judicial, administrative, and other entities.

10 - Approving the issuance of licenses and permits necessary for conducting any electrical activity in accordance with the approved regulations and procedures.

11 - Issuing the necessary decisions to implement the provisions of the law and its executive regulations (concerning the Authority's tasks) and the regulation and its executive regulations, rules, and approved procedures, according to the powers delegated to him.

12 - Exercising the powers granted to him by the Council's decisions and the laws and regulations specific to the Authority. The Governor may delegate some of his powers and duties to others.

The governor shall have one or more deputies appointed by a decision of the Council based on the nomination of the governor. The deputies of the governor shall undertake the tasks and powers delegated to them by the governor within the limits prescribed by the law, regulations, and approved procedures specific to the authority.