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The details of the new electricity system 1443 in Saudi Arabia were announced through the official website of the Council of Experts in the Council of Ministers on the Internet, in addition to announcing them through many other official platforms, and the reference site helps us know many details about the new system of the Electricity Company with mentioning some Responsibilities entrusted to the Saudi Electricity Regulatory Authority as well.

Saudi Electricity System

The new electricity system has been launched in the Kingdom of Saudi Arabia to keep pace with all the developments that the Kingdom is currently witnessing in the energy fields. The electricity system also seeks to regulate electricity violations and deter violators from their actions, while defining the tasks and responsibilities entrusted to the Ministry of Electricity and the method of issuing various licenses in the electricity sector as well.

How do I know the electricity bill from the meter number and how to calculate the Saudi electricity bill

Details of the new electricity system 1443 in Saudi Arabia

The new electricity system was issued in the Kingdom of Saudi Arabia on Thursday, Jumada Al-Awwal 16/1442 AH corresponding to December 31, 2020 AD, provided that it will come into force after one hundred and eighty 180 days have passed from the date of its publication in the Official Gazette. This system includes twenty-three 23 articles. They are included in the following chapters:[1]

  • Chapter Definitions.
  • Separation of general provisions.
  • Separation of the regulatory framework for the licence.
  • Separation of the backup sources of electric power.
  • Chapter Definition and Poetry.
  • Chapter of hypocrisy.
  • The chapter on the development of the structure of electrical activities.
  • Opposition and Punishment Chapter.
  • Separation of final provisions.

The tasks of the Ministry of Energy in the new electricity system 1443

According to the new electricity system in force in 1443 AH, the Ministry of Energy undertakes the following tasks:

  • Providing, developing and documenting databases, statistical data and technical information related to the electricity sector, in addition to conducting the necessary surveys and preparing reports in this regard.
  • Suggest any amendments to the new electricity system in coordination with the Saudi Electricity Regulatory Authority.
  • Follow-up on the implementation of programs to rationalize and raise the efficiency of electric energy production and consumption in coordination with the relevant authorities, after adopting these programs.
  • Coordination with the Electricity Regulatory Authority in order to prepare and approve long-term plans for electricity activity in light of the approved policies and strategies, and follow up on their implementation within the following:
    • Determine the type of fuel available for use by the electricity sector.
    • Determining the percentage of contribution of different energy sources to the production of electricity in a way that provides the optimum mix.
    • Connecting, strengthening and modernizing the electrical network in the Kingdom, with the delivery of electrical service to areas that have not been reached in the Kingdom of Saudi Arabia.
    • Maintaining an adequate reserve of generation capacities in power plants or producing them according to the appropriate reserve capacity in the transmission and distribution networks.
  • Preparing for the adoption of electricity sector policies and strategies by preparing them and submitting them to the competent authorities.
  • Supervising all the concerned authorities regarding the electricity sector from the approved policies and strategies.
  • Preparing the necessary plans as well as studies and development programs related to the electricity sector in coordination with the relevant authorities, in addition to adopting, issuing and updating these plans and verifying their implementation on the ground.
  • Take the necessary measures when the Kingdom is exposed or about to be exposed to any situation or threat that could affect the supply of fuel or electricity.
  • Coordinating with the relevant authorities to develop a long-term program that aims to:
    • Supporting the supporting national industry in the electricity sector.
    • Localization of modern technology and human resource development.
    • Working to increase the local content by setting the necessary mechanisms to localize jobs, goods and services in the electricity sector and to ensure their implementation.
    • Working to create a stimulating investment environment for the supply chains of industries related to the electricity sector and their development, in particular for small and medium enterprises.
  • Conduct studies and research related to the electricity sector and support research and development activities in this sector.
  • Representing Saudi Arabia and taking care of its interests in local, regional and international organizations and bodies related to the electricity sector, with regard to the Ministry’s responsibilities such as electrical interconnection and the commercial exchange of electricity with other countries.

Violations of the Saudi electrical system 1443

The eighth chapter of the new Saudi Electricity Law of 1443 AH is devoted to details of violations and penalties. This chapter begins at Article seventeen and continues until the end of the second clause of Article Twenty-first. Here are some of the details of violations of this system.

Violations of the Saudi Electricity Law 1443

The following list includes acts that violate the Saudi electricity system in force in 1443 AH:

  • All electrical activities that are carried out without obtaining an official license or an exemption from the competent authorities.
  • The beneficiary’s failure to abide by any decision issued by the Electricity Regulatory Authority with regard to its duties and responsibilities.
  • Failure of the beneficiary in any of the following after obtaining an official license:
    • Provide information or data requested by the Saudi Electricity Authority.
    • Providing electricity services that have been licensed to the beneficiary to provide.
    • Obtaining the necessary approvals in addition to obtaining the conditions of the license or exemption.
  • Providing false or misleading information.
  • Tampering with the electricity meter or any of its accessories.
  • Failure to comply with the approved fuel efficiency standards after obtaining the license.
  • Leaving commitment to the approved specifications and standards that aim to preserve the environment, safety and public health in the Kingdom.
  • Using the electrical system or connecting to this system in any irregular manner.
  • Helping others to use the electricity system or connect to it in illegal ways.
  • Withholding the necessary information for electricity activities in Saudi Arabia according to the executive regulations.
  • Publishing data and information prohibited to be circulated or published in relation to electricity activities in accordance with the executive regulations.

Penalties for violating the Saudi Electricity Law 1443

The second item of Article Eighteen (18) in the Saudi Electricity Law in force for the year 1443 AH stipulates determining the amount of violations in accordance with rules issued by the Board of Directors of the Water and Electricity Regulatory Authority, but the Council has not issued these rules yet. All fees and amounts that result from fixing the violation by the violator as well.

Objectives of the new electricity system in Saudi Arabia 1443

The new electricity system in Saudi Arabia for the year 1443 AH aims at the following according to Article 2 of the same regulation:

  • Creating the appropriate environment to encourage legitimate competition in electricity activities within the Kingdom.
  • Protect the rights and interests of licensees, in addition to providing a regulatory framework for electricity activities in the public and private sectors, provided that it is a clear and stable framework without discrimination.
  • Stimulating the private sector to contribute and participate in the systematic expansion of electrical activities in a manner that can achieve a fair economic return on commercial bases.
  • Improving the electricity services provided to the consumer and protecting his rights to obtain electrical service in a reliable and efficient manner, along with the right to choose between competitors licensed for electric activities.
  • Facilitate consumer access to electricity supply.
  • Ensuring the electricity sector’s commitment to the Kingdom’s policies and directives in a way that can achieve economic growth and the welfare of society.
  • Developing the structure of the electricity sector in Saudi Arabia by following a fair and effective process that enhances competitiveness in the electricity activities.
  • Encouraging research, development and localization of technology, jobs and services in the fields of electrical energy.
  • Work to deliver electrical services to areas that have not yet been reached by electrical service.
  • Providing electricity supplies that are safe and reliable, in addition to maintaining degrees of reliability and efficiency, and providing them at reasonable prices.
  • Providing electricity services at competitive and reasonable prices that achieve justice among consumers in the Kingdom of Saudi Arabia.

When will the new social security system be implemented 1443

Duties of the Electricity Regulatory Authority in Saudi Arabia 1443

The Electricity Sector Regulatory Authority undertakes nine tasks according to the new electricity system for the year 1443 AH, which are the following:

  • Monitor the implementation of the regulations, management, accounting and investment rules that the licensee is following.
  • Take the necessary measures to manage the electricity activity in the necessary cases that require it.
  • Approve the implementation plans prepared by the licensee, in accordance with the ministry’s long-term plan.
  • Deciding on complaints related to electricity activity when raised by the concerned parties.
  • Coordination with the Ministry to ensure the optimal use of energy sources that achieve the best return for the national economy, including:
    • The licensee’s commitment to apply the standards for raising the efficiency of electricity generation.
    • Taking into account the standards and standards adopted to protect the environment.
    • Encouraging high-efficiency power plant projects.
  • Approving the qualification documents and mechanisms and putting forward electrical activity projects in Saudi Arabia.
  • Take measures to ensure the availability of additional sources of electricity generation in the event that a clear shortage of supplies is expected based on what is required by the public interest, while informing the concerned authority of such measures.
  • Issuing bylaws and rules related to its competencies, including the following rules and regulations:
    • Executive Regulations of the Electricity System.
    • Technical, operational and procedural rules related to electrical activities.
    • Performance standards to be achieved by licensees.
    • Rules that define the relationship between licensees and the Authority on the one hand, and between them and consumers on the other.
    • Classify the types of electricity activity in the Kingdom, and update them when needed.
    • The rules required to issue licenses, exemptions and permits, provided that they include the basis for calculating the financial consideration.
  • Take the necessary measures to implement the provisions of the Electricity Law and its regulations with regard to the tasks assigned to the Authority.

Electricity company regulations for the new system 1443

The Electricity Company in the Kingdom of Saudi Arabia has not yet approved the executive regulations for the electricity system in 1443 AH.

Download the draft executive regulations for the new electricity law pdf

Download the draft executive regulations for the Electricity Law 1443 AH in Saudi Arabia as a PDF as follows:

  • Go to the draft executive regulations “from here” directly.
  • Right-click inside the list document.
  • Choose Save As from the dropdown menu.
  • Determine the appropriate course to download the draft list.
  • Click the save icon when finished.

Details of the new state revenue system in the Ministry of Finance 1443

Saudi Electricity Regulatory Authority Twitter

The Electricity Regulatory Authority in the Kingdom of Saudi Arabia is working to publish the details of its various activities through its official account on the Twitter social network. Through the messaging service available via Twitter.

Although the details of the new electricity system 1443 in Saudi Arabia have been published through the official websites, the Electricity Sector Regulatory Authority has not yet approved the executive regulations for this system. Violations of the law, its penalties, and the method of licensing electricity services in the Kingdom.

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