Chapter I : Establishment of The Authority, Duties and Functions
Article 19:
There shall be established pursuant to this Law an Authority to regulate the electricity and Related Water sector. The headquarters of the Authority shall be located in the Governorate of Muscat.
Article 20:
The Authority shall have legal personality and financial and administrative autonomy and shall have the right to own the necessary moveable and immovable properties required to achieve its objectives and its property shall be considered as public property.
Article 21:
Except as otherwise stipulated in this Law, the Authority shall not be subject to the provisions of the abovementioned Public Authorities and Institutions Law or other laws and regulations applicable to the public authorities and institutions or government units.
Article 22:
The Authority shall: (1) Secure the
provision of electricity and Related Water services in all parts of the
Sultanate of Oman and protect the interests of Customers particularly Customers
who have limited income, the sick and elderly. (2) Encourage the promotion of
competition in the interest of the public in the electricity and Related Water
sector conducive to the achievement of public interest. (3) Secure and
develop the safe, effective and economic operation of the electricity and
Related Water sector in the Sultanate of Oman and to enhance the safety of the
public. (4) Secure the Security of Supply in the Sultanate of Oman. (5)
Secure that Licensees are undertaking to meet all reasonable demands relating to
Connection to the Total System and Supply. (6) Secure compliance with the
policies of the government in relation to Omanisation and training of Omani
content leading to the creation of technical staff capable of undertaking the
responsibility. (7) Facilitate the privatisation of the electricity and
Related Water sector in the Sultanate of Oman. (8) Secure the protection of
Rural Customers and encourage Supply of electricity to them through Connection
or RAEC Connections in accordance with the provisions of Article (85) of this
Law. (9) Take the necessary measures to enable Licensees to undertake the
regulated activities pursuant to this Law and secure the effective operation of
their activities in order to attract finance for their licensed activities in an
economic manner. (10) Ensure the financial and technical capability of
Licensees. (11) Secure the necessity for taking into consideration the
protection of the Environment. (12) To meet its obligations regarding the
procurement and sale of Imports and Exports of electricity and International
Interconnection in accordance with the provisions of Articles (114) and (115) of
this Law. (13) Secure the conduct of fair and transparent competitions for
New Capacity and Output by the Oman Power and Water Procurement Company. (14)
Undertake not to unduly discriminate without legal justification between Persons
and to act consistently in like cases. (15) Secure the minimization of
regulatory burdens on Licence Holders or Exemptions Holders. (16) Secure the
preparation of technical specifications and criteria, and Performance Security
Standards, for the electricity and Related Water sector, to maintain and review
them in accordance with the relevant exigencies of the public interest. (17)
Prepare a Public Register containing all that relates to Licenses and Exemptions
and any modifications made therein, and papers and documents relating to any of
the above, and the certificates in respect of any Member of the Authority, and
to maintain such Public Register. (18) The preparation of objective criteria
to ensure that Licenses and Exemptions are granted to Appropriate Persons and to
review, implement, and comply with such criteria and to make them available to
relevant Persons to obtain them on request. (19) Secure the preparation of
criteria relating to the welfare of the Customer and to amend, maintain, follow
up compliance and implement such criteria. (20) Monitor the development of
the electricity and Related Water market in the Sultanate of Oman. (21)
Provide advice to Ministries in relation to the financing of RAEC Connection and
Electrification Funding and the calculation of financial subsidy and tariffs and
other functions assigned to it in accordance with the provisions of this Law. (22) Review the situation of the electricity market in order to assess the scope for further Liberalization and submit reports in this regard, and to assist in the development of criteria to be applied pursuant to the Salalah Project Agreements. The Authority shall take into consideration the provisions of the agreements concluded before the promulgation of this Law in respect of electricity and Related Water sector projects.
Article 23:
The Authority may, after coordination with the concerned bodies, and observing all Oman Electrical Standards, issue regulations relating to Street-works.
Article 24:
Street-works regulations issued by the Authority in accordance with the provisions of the preceding Article may include the following:
(a) Authorize Licensees to perform Street-works necessary for the undertaking of
their licensed activities and to oblige them before undertaking such works to
coordinate with other Persons, and to oblige non-licensees undertaking
Street-works to coordinate with Licensees, in all matters relating to
Street-works. (b) Oblige those undertaking Street-works referred to above to
comply with relevant specifications for Street-works related to electricity and
the materials used, and to observe traffic rules and take necessary measures to
protect the public, property and other utilities, and to remove unused or
excavated material from the public street and to restore the situation as it was
before the commencement of the work. (c) Oblige Persons undertaking Street-works to compensate any Persons affected by such works, and to abide by the provisions contained in the aforementioned regulations.
Article 25:
The Authority shall have the following functions:
(1) Implementation of the general policy for the electricity and Related Water
sector and the policy of the State in relation to regulated activities pursuant
to the provisions of this Law. (2) Preparation of programmes and plans
necessary for the development of the general policy of the electricity and
Related Water sector in the Sultanate of Oman. (3) Issuance, modification and
revocation of Licenses and approval of Exemptions and follow up its compliance
and to oblige Licensees and Exemption Holders to discharge their duties
prescribed in this Law. (4) Determine the form of Licenses in respect of each
regulated activity, which is subject to the provisions of this Law. (5)
Taking measures for the implementation of obligations arising from international
agreements in the field of electricity and Related Water to which the Sultanate
of Oman is a party, and the resolutions issued by international and regional
organizations to which the Sultanate has acceded, or will accede to, all being
in coordination with the Competent Authorities in this respect and in a manner
not in conflict with the provisions of this Law. (6) Determination of the
terms, rules, specifications and obligations, which Licensees and Exemption
Holders shall comply with. (7) Monitoring of the implementation of the terms
and rules of Licenses or Exemptions by Licensees and Exemption Holders. (8)
Examination of complaints submitted by Customers and Licensees and taking
prescribed procedures in respect thereof pursuant to the provisions of this Law.
(9) Preparation of programmes necessary for the creation of awareness about the
importance of the electricity and Related Water sector and the effect resulting
from the development of the sector on development plans and welfare of the
citizens. (10) Coordination with the relevant Ministries and government units
in all that is required for the development of the sector pursuant to the
provisions of this Law. (11) Issuance of regulations specifying the manner
of expending RAEC Connection and Electrification Funding, monitoring the extent
of compliance with such regulations by the Rural Areas Electrification Company,
and the Authority shall submit a report in this respect, a copy of which shall
be sent to the Ministry of National Economy, the Ministry of Finance, and the
Ministry of Housing Electricity and Water. (12) Setting out rules to
regulate the keeping and maintenance of records by Licensees in the manner
specified by the Authority. (13) Setting out standard technical criteria to
be complied with in relation to Connection to a transmission or distribution
System of a Licensee, and in relation to the use and operation of such Systems,
and the criteria relating to the maintenance and development of the Licensee’s
System. (14) Settlement of disputes arising between Licence Holders or
Exemption Holders or between Customers, or any other Persons in accordance with
the provisions of a Licence or Exemption pursuant to the provisions of this Law. (15) Issuance of regulations and decisions authorized by this Law.
Article 26:
The Authority shall have the right to oblige the Rural Areas Electricity Company to transfer its assets and Distribution and Supply Business, if the public interest so requires in accordance with the procedures and rules stipulated in Article (88) of this Law, and the Authority shall have the right to oblige Licensed Distribution System Operators and a Licensed Transmission System Operator to acquire any of the assets, and to oblige any Licensed Supplier to acquire a specified Supply Business from this company in accordance with the provisions of this Law.
Article 27:
The Authority shall establish a Public Register of the activities relating to the electricity and Related Water sector which shall be available to any Person whose economic interests are connected with this sector for perusal of data and information contained in this register after payment of the fees specified by the Authority as long as the data and information does not divulge secrets of a Licensee or Exemption Holder. The data and information contained in the Public Register shall include the following:
(i) All Licenses and Exemptions issued in the electricity and Related Water
sector. (ii) Modifications to the Licenses and Exemptions. (iii)
Resolutions and Orders issued by the Authority in relation to the electricity
and Related Water sector. (iv) Approvals issued to Licence Holders or
Exemption Holders from any body relating to the Licence or the undertaking of
the licensed activity or the Exemption. (v) Licenses and Exemptions that
have been revoked and reasons for revocation thereof and any matters resulting
from the revocation. (vi) The criteria relied upon by the Authority in the evaluation of the advantages and disadvantages to the public interest in regard to the transfer process and the approach of developing such criteria. The aforementioned register may contain such data and information deemed necessary by the Authority.
Article 28:
The Authority after coordinating with concerned Persons shall have the right to issue regulations if the public interest so requires specifying the following:
(a) The manner of provision of information required to be submitted to the
Authority by the Oman Power and Water Procurement Company and other Persons
including Licensees and Exemption Holders. (b) The manner of cooperation between the Rural Areas Electricity Company and the Oman Power and Water Procurement Company, and the manner in which each of them shall exercise its rights against the other and obligations towards the other.
Article 29:
The Authority shall prepare an Annual Report that shall contain:
(a) Detailed information relating to its activities and the developments that
occurred in the electricity and Related Water sector, and the extent to which
the electricity market is prepared for further Liberalisation, and the volume of
Imports and Exports of electricity, and the proposals of the Authority in this
respect. (b) The proposals of the Authority in relation to Permitted Tariff
regulations and government financial subsidy. (c) A detailed statement of the
achievements in the area of providing electricity to Rural Premises through RAEC
Connection or other Licensed Distribution Companies and the possibility of
achieving further Connection and the plan of the Authority in respect of RAEC
Connection and Electrification Funding. (d) A statement of the audited
financial accounts of the Authority for each financial year in accordance with
international accounting standards. (e) The method of calculating the value
of financial subsidy in accordance with the provisions of Article (18) of this
Law. (f) Any other matters the Authority considers should be included in this report. The Authority shall prepare this report within a period not exceeding 6 months of the end of the relevant Financial year and shall furnish a copy of this report to the Ministry of Housing Electricity and Water, and a sufficient number of copies shall be furnished to the Ministry of National Economy to allow the latter to submit the report to the Council of Ministers.
Article 30:
The Authority shall review any proposals referred to it by the Ministry of National Economy in relation to further Liberalisation.
Article 31:
If the Authority, in coordination with the Ministry of National Economy, concludes that the market is not so ready for further Liberalisation, the Authority shall include in its Annual Report the following:
(a) A statement of the conditions which the Authority believes shall be
realized, and the measures to be taken by the Authority or by other Persons to
realize such conditions, in order that the market could be ready for further
Liberalisation, and state the period the Authority deems required during which
such measures may be taken, after which the Authority expects the market to be
ready for further Liberalisation. (b) A statement of the kind of Liberalisation that the Authority believes eligible for implementation after the completion of the above mentioned.
Article 32:
If the Authority, in coordination with the Ministry of National Economy, concludes that the market is ready for further Liberalisation, it shall include in its Annual Report the following:
(a) The nature and extent of the proposed Liberalisation and the amendments
which it deems necessary to be made to this Law, the licenses issued pursuant to
its provisions, and the rules of the Grid Code and Distribution Code, and other
rules and regulations, and the timing of the proposed Liberalisation, before the
Liberalisation could be made. (b) The outcome of the coordination, which the
Authority shall make with Industry Participants and other relevant Persons
relating to such proposals. (c) The Ministry of National Economy shall,
after consultation with the Electricity Holding Company, have the right to
submit to the Council of Ministers a recommendation to take what it deems
necessary to implement the Authority's proposals in respect of further
Liberalisation. (d) The Ministry of National Economy, after the approval of
the Council of Ministers, shall issue a decision to implement the abovementioned
proposals. (e) The nature of the Liberalisation its extent and timing shall be in accordance with the resolution of the Council of Ministers.
Article 33:
The Authority shall announce the issue of the report referred to in Article (29) of this Law in two daily local newspapers, one of which shall be in the Arabic language, and by any other method the Authority deems appropriate, and any Person shall have the right to obtain a copy of this report after payment of the fee specified by the Authority.
Article 34:
The Authority shall before the commencement of each Financial year prepare and publish a Forward Work Programme containing a general description of the main activities the Authority intends to undertake during the subsequent financial year provided such description shall include the objectives relating to each activity.
Article 35:
The Authority shall, by written notice, furnish relevant Persons with the programme referred to in the preceding Article, and the Authority shall have the right to publish the programme by any manner it deems appropriate, and any interested Person may submit comments and objections relating to the content of the programme within one month of the date of notice, and the Authority shall reply to such comments and objections submitted to it during a similar period.
Article 36:
The Authority shall send to the Ministry of Finance, the Ministry of National Economy and the Ministry of Housing Electricity and Water a copy of the aforementioned programme and the objections submitted to it, and the replies made to them, and the Ministry of National Economy shall furnish sufficient copies of the above to the Council of Ministers.
Article 37:
The Authority shall have the right to issue regulations regarding the implementation of Street-works to facilitate the regulated activities, or relating to determining the manner of coordinating between Licensees and Persons undertaking the implementation of Street-works as long as such affect the licensed activities. The Authority shall include in such regulations whatever it deems necessary in this respect. The Authority shall, before issuing such regulations, follow the procedures stipulated in this Law, and all Persons addressed by the provisions of such regulations shall comply with it.
Article 38:
The Authority after consultation with the Ministry of Housing, Electricity and Water, shall issue regulations for the following purposes:
(a) Secure the provision of regular supplies of electricity and related
desalinated water. (b) Protection of the public from the risks relating to
works and installations whether in relation to electricity or Related Water and
to eliminate or reduce the risk of physical injury. (c) To encourage the efficient use of electricity.
Article 39:
The regulations stipulated in the preceding Article may include the following:
(a) Prohibition of Transmission, Distribution or Supply in specified
circumstances. (b) The requirement of notification of accidents, breakdowns
of Supply or Transmission and Distribution infrastructure or the occurrence of
incidents affecting the Total System. (c) The requirement to maintain
designs, maps, drawings and other documentation and make them available for
inspection and copying by any concerned Person. (d) Exempt certain categories
of Licensees in specific circumstances from the obligation to Supply
electricity. (e) The requirement to provide specific information by Licensees
to specific Persons and to cooperate with them. (f) To provide for the
issuance of new Oman Electrical Standard by the Authority exclusively or to
modify existing ones and the requirement to comply with such standards and what
may be considered as compliance with the technical standards. (g) To specify
the conditions relating to earthing of electrical installations, electrical
voltage and frequency. (h) The requirement to comply with the announcements
issued by the Authority to eliminate or reduce risk of physical injury or damage
or interference with property. (i) Exceptions from the regulations
stipulated in the preceding Article and this Article. (j) Any other matters determined by the Authority.
Economical Analysis
