The Authority wherever the public interest requires shall have the right to grant combined Licenses for different regulated activities within the limits prescribed in this Law.

The grant of Licenses or Exemptions shall be on the basis of an application to be submitted to the Authority, which shall specify its form and procedures for submitting it, and the application shall be accompanied by such documents, information, and particulars required for the issue of the Licence or Exemption and the evaluation of the application, and the application fees fixed by the Authority shall be paid, and the Authority shall comply with the technical and objective criteria required for the issue of a Licence or grant of an Exemption to Appropriate Persons.

The grant of a Licence or Exemption to undertake any of the regulated activities shall not be in lieu of obtaining the approval or authorizations imposed by prevailing laws, and the Authority is obliged to furnish the necessary particulars or information to the official authorities to enable them to issue such approvals or authorizations.

The Authority shall at least 30 days before issuing any Licence or approving any Exemption publish in two local daily newspapers, one of which is in the Arabic language, and in any manner deemed reasonable by the Authority, a Notice concerning:
(a) The Person to whom the issue of Licence or grant of Exemption is intended;
(b) The reasons for issuing the Licence or granting the Exemption;
(c) The period within which remarks and objections in relation to the issue of the Licence or grant of the Exemption may be submitted, which period shall not be less than 28 days from the date of publication of the Notice;
(d) The particulars and conditions of the Exemption proposed to be granted.

The provisions of paragraphs (a),(b),(c),(d), shall not apply to the Licenses issued to the companies stipulated in Article (66) of this Law.
It shall also not apply to the Licenses issued to the following companies:
(i) United Power Company SAOG;
(ii) Al Kamil Power Company SAOC;
(iii) AES Barka Company SAOC.
And it shall also not apply to any Exemption granted on the Transfer Date.
 

The Authority shall publish a Notice stating the particulars of any Licence granted in two daily newspapers, one of them in the Arabic language, and any other manners deemed reasonable by the Authority.

The Licence or Exemption shall be in the form prepared by the Authority for this purpose, which shall include the period during which the Licence and Exemption shall be valid, and the conditions stipulated in this Law.

It shall not be permissible to transfer the Licence or Exemption unless otherwise provided for in the Licence or Exemption, the written approval of the Authority is a condition precedent to make such transfer according to the conditions specified by the Authority.

The Authority shall have the right to modify the conditions of any Licence when the public interest so requires according to the following procedures:
(a) The Authority shall publish a Notice for making the proposed modification at least 30 days before making such modification stating the reasons and effects of such modification and determining a period not less that 28 days for the submission of objections in respect of the modification, and the Authority shall take into consideration objections submitted to it;
(b) If the Licensee agrees to the modification intended to be made the Authority shall make the modification provided that the modification shall have effect in a period not exceeding 30 days of the publication of the Notice in accordance with the above, and if the Licensee objects to the making of the modification the Appeal shall be settled pursuant to the provisions of this Law, and if the Appeal determines that the modification shall be made, it shall be made and come into force on the day following the settlement of the Appeal;
(c) The Authority shall publish the modification intended to be made to any Licence in two local daily newspapers, one of them in the Arabic language, and the Authority shall have the right to publish such Notice in any other reasonable manner, and shall publish the modification made in the same manner.
 

The Licence shall contain the conditions specified by the Authority and shall include the following:
(a) The duty of the Licensee to abide by government policy in respect of Omanisation and the protection of the Environment;
(b) The duties of Licensees specified in this Law and the manner in which they are to be performed;
(c) A prohibition on the Licensee to transfer his Licence and create security on its assets or liabilities without obtaining the prior written approval of the Authority;
(d) A prohibition on the Licensee or any affiliates, other than the government and any entity Wholly-owned by the Government, without the prior written approval of the Authority, to own shares or have an economic interest of whatever kind in any other Licensee or its affiliates. This is with exception to the interests which a Licensed Supplier has in the services of the Licensed Distribution System Operator who uses its System for Supply, or vice versa;
(e) The obligation of the Licensee to exchange information with other Licensees and to comply with the request of the Authority by virtue of a Notice to submit any documents and any information whether it is in the possession of the Licensee or under its control in the manner and times specified by the Authority in this context.

 

An Exemption shall include the same obligations prescribed in this paragraph:
(f) The provision to resort to the competent court to oblige a Licensee or Exemption Holder who does not comply with the obligations prescribed in paragraph (e) above;
(g) The activities from which the Licensee is prohibited from undertaking.
 

A Licence may contain the following conditions:
(a) Placing a duty on the Licensee to contract with any Person for the purposes specified in the Licence together with a statement of the manner and procedure and conditions of such contracting;
(b) Determination of the conditions for Licence suspension or modification and the time and manner stated in such conditions;
(c) To oblige the Licensee to pay fees payable to the Authority on issuance of the Licence and the annual fees during its validity period;
(d) All that is relevant to the revocation of the Licence;
(e) To determine the manner by which the Licensee undertakes the licensed activity, and all specific matters arising from the Licence, and the actions required to be taken according to the Licence for the decision or approval of the Authority or its nominee, and the obligation to submit to such nominee and the Authority the documents, information and studies sought from the Licensee;
(f) To oblige the Licensee to maintain separate accounts in the manner required by the Authority for the separate businesses of the Licensee.
 

Without prejudice to the provisions of the two preceding Articles:
(1) The Oman Power and Water Procurement Company Licence shall contain the following conditions:
(a) A provision for a prohibition on the company not to undertake any regulated activity except those specified in its Licence;
(b) A provision for the calculation of the Bulk Supply Tariff and its review from time to time;
(c) A provision to oblige the company to cooperate with the Licensed Suppliers who contract on its behalf with Autogenerators in relation to Output in regard to the conditions of such agency contracts and other contract conditions relating to Supply.
(2) The Generation Licence and Generation/Desalination Licence shall contain the following conditions:
(a) A provision to oblige the Licensee to ensure that his Production Facilities meet all reasonable requirements for central scheduling and Dispatch;
(b) A provision to oblige the Licensee to offer terms for securing Ancillary Services and to restrict the powers granted pursuant to the Licence to specified Production Facilities and/or specific Production Capacity;
(c) A provision to permit the imposition of restrictions on the percentage of total market share for Generation and/or Generation/Desalination whether in respect of the Licensee and its affiliates and related commercial projects.
(3) The Transmission Licence shall contain the following conditions:
(a) A provision for the manner in which the Authority sets out tariffs for Connection to and use of the Licensee's System and the issue and modification of such tariffs;
(b) A provision to develop and/or operate International Interconnections if the Law permits him to do so, and a provision for the prohibition on the Licensee from undertaking any activity other than the Transmission of electricity and the operation of a system for the Dispatch of Production Facilities, and also a prohibition on the disposal of assets required for undertaking the regulated activities without obtaining the prior written approval of the Authority;
(c) Determination of the manner and conditions of the Connection of Rural Premises and the Connection of RAEC Systems and the acquisition of the assets of the Rural Areas Electricity Company.
(4) The Distribution Licence shall include the following conditions:
(a) A provision for the prohibition on the Licensee undertaking any regulated activity other than the operation of a Distribution System and the Operation of an International Interconnection, and the transfer of assets which are necessary for the undertaking of the regulated activities without obtaining the prior written approval of the Authority;
(b) A provision for the manner in which the Authority sets out tariffs for Connection to and use of the Licensee's System and the issue and modification of such tariffs;
(c) Determination of the manner and conditions of the Connection of Rural Premises and the Connection of RAEC Systems and the acquisition of the assets of the Rural Areas Electricity Company.
(5) The Supply Licence shall contain the following conditions:
(a) A provision to oblige the Licensee to prepare Supply conditions to be approved by the Authority and also to offer standard Supply conditions to specified classes of Persons;
(b) A provision for the determination of Permitted Tariffs to be charged by the Licensee to different classes of Customers;
(c) A provision to oblige the Licensee to publish the adopted codes of practice containing procedures for the payment of bills by Customers, and the conditions for disconnecting a defaulting Customer, and the services to be provided to the elderly and disabled, and the efficient use of electricity; and the system for handling complaints;
(d) A provision to oblige the Licensee to provide information relating to electricity demand forecasts to other Licensees in accordance with the Grid Code and Distribution Code;
(e) A provision to oblige the Licensee to acquire Supply business from the Rural Areas Electricity Company in accordance with the instructions of the Authority in respect thereof;
(f) A provision to oblige the Licensee to contract on behalf of the Oman Power and Water Procurement Company for the purchase of the surplus Output of Autogenerators.
 

Without prejudice to the provisions of this Law the Rural Areas Electricity Company Licence shall contain the following:
(a) A provision to oblige the company to transfer its assets and Supply business in accordance with the instructions issued by the Authority in respect thereof;
(b) A detailed provision for the arrangements required for RAEC Connection and Electrification Funding.
 

The Authority shall when granting a Licence for the Import or Export of electricity observe the following:
(a) The Authority shall not be permitted to grant a Licence to Import and/or Export electricity, or modify an existing Licence in order to include any such Import and/or Export across an International Interconnector with a capacity of 33 kV or more, or such other limit decided by the Council of Ministers, unless after obtaining the approval of the Council in respect of such Import and/or Export based on the recommendation of the Ministry of Housing, Electricity and Water;
(b) The Licence shall exclusively be granted to the Oman Power and Water Procurement Company or the Rural Areas Electricity Company;
(c) The Licence shall contain those conditions (if any) which have to be included pursuant to a recommendation made by the Ministry of Housing, Electricity and Water and approved by the Council of Ministers;
(d) The aforesaid Licence may include other conditions specified by the Authority to deal with the manner in which the Licensee shall observe the relevant arrangements in respect of the performance of his duties pursuant to this Law;
(e) The Authority shall consider the following:
(i) The proposed conditions for Import and Export as to the price and other matters and the creditworthiness of the Person to whom Export of electricity is intended to be made;
(ii) Whether any contracting for Import or Export pursuant to a Licence shall be on an interruptible basis;
(iii) The extent of the effect which the Import or Export may have on the ability of the Oman Power and Water Procurement Company to fulfil its obligations particularly those in respect of ensuring that reasonable demand for electricity is met, and the effect on the fuel supply market in the Sultanate of Oman;
(f) The Ministry of Housing, Electricity and Water shall consult with each of the Authority and the Electricity Holding Company before submitting its recommendations stipulated in paragraphs (a) and (c) to the Council of Ministers.
 

The Authority shall before granting a Licence to make an International Interconnection, consider the following:
(a) The Authority shall not be permitted to grant a Licence to make a new International Interconnection or modify an existing Licence where the proposed International Interconnection will have a capacity of 33 kV or more, or such other limit decided by the Council of Ministers, without the approval of the Council of Ministers for the Import or Export of electricity across means of an International Interconnection pursuant to the provisions of the preceding Article;
(b) The Licence shall exclusively be granted to a Licensed Transmission System Operator, a Licensed Distribution System Operator, or the Rural Areas Electricity Company;
(c) A Licence to develop and/or operate an International Interconnection shall contain such conditions that have been approved by the Council of Ministers on the basis of the recommendation of the Ministry of Housing, Electricity and Water which Ministry shall have consulted with the Authority and the Electricity Holding Company before making and submitting such recommendation to the Council of Ministers;
(d) The aforesaid Licence may include other conditions specified by the Authority to deal with the manner in which the Licensee shall observe the relevant arrangements in respect of his performance of his duties pursuant to this Law;
(e) The Authority shall, when granting the aforesaid Licence, observe the possible effects on the Total System and on the ability of the Licence Holder to fulfil his duties prescribed pursuant to this Law.
 

If it is revealed to the Authority that a Licensee or Exemption Holder is violating or likely to violate a condition of the Licence or Exemption, or any of the duties imposed on him pursuant to the provisions of this Law, the Authority shall serve a written warning on him to cease the violation or not to violate, or to fulfil the duty imposed on him, within a specified period as the case may be, provided the warning shall include the measures which the Authority will take in case the Licensee does not fulfil the duty imposed on him promptly on the expiry of the warning period, and if the situation is not rectified within the period specified in the warning the Authority shall have the right to take whatever it deems reasonable to ensure compliance with the provisions of this Law and the conditions of a Licence or Exemption.

The Authority shall not be permitted to issue the decision abovementioned in the preceding Article if the Licence Holder or Exemption Holder has consented to and commenced to take the measures deemed necessary by the Authority in this respect, or if the Authority considers that the violation is trivial.
The Authority may cancel any decision issued by it provided that it shall notify the Person to whom the decision has been served in the manner in which the decision was served, and the Authority may also modify the decision provided the modification shall be made by the consent of the relevant Person or after the expiry of the period specified by the Authority for relevant Persons to submit their objections and remarks.
 

The Authority shall send to the Licence Holder or Exemption Holder a copy of any decision issued against him or the cancellation or modification of such decisions, as the case may be, and shall publish the decisions or cancellations in the manner it deems reasonable, and the decision issued by the Authority shall be in force with immediate effect and the Licence Holder or Exemption Holder shall comply with it subject to the provisions of this Law.

The Authority shall have the right to revoke a Licence or Exemption in case the Holder of a Licence or Exemption abstains from implementing the decisions issued by the Authority in respect of the violations as above mentioned, subject to the following procedures:
(a) To coordinate with the Ministry of National Economy before notifying the Transmission or Distribution Licence Holder of the revocation within a period specified by the Authority;
(b) To coordinate with the Ministry of National Economy before notifying the revocation of the Exemption if the relevant circumstances relating to the Exemption have changed whether these circumstances relate to the Exemption Holder or the electricity and/or Related Water sector, as the case may be;
(c) The Authority shall notify the Licensee of its intention to revoke a Licence or Exemption at least 30 days before the revocation date, provided the notification shall include the reasons for issuing the decision to revoke and the period to be specified by the Authority for the submission of remarks and objections which shall be not less than 28 days from the date of such notification.
The Authority shall decide on the remarks and objections submitted to it and make a reply to the Person submitting them within 30 days of the date of its submission.
 

In the event of a revocation of any Transmission Licence or Distribution Licence pursuant to the provisions of the preceding Article (121):
(a) The Licensee shall have the right within the nine-months following the receipt of notice revoking the Licence, to dispose of the assets and business relating to the regulated activities after the approval of the Authority, and the government may extend the abovementioned period for not more than a further three months, and also may appoint an Appropriate Person, to operate, manage, and maintain the aforementioned assets and business and to preserve them until the expiry of the period specified for the disposal;
(b) The Licensee shall reimburse the government for all costs and expenses incurred in the appointment of the Appropriate Person to undertake the aforementioned in the preceding paragraph, provided such costs shall include whatever arises from additional investment required to rectify any violation by the Licensee of the conditions of his Licence;
(c) If the assets of the Licensee have not been disposed of within the period specified in paragraph (a) the government shall seize all the assets of the Licensee required for the proper implementation of the conditions of his Licence, and shall appoint an interim operator for such assets; and shall endeavour to sell such assets and business to a private sector entity which shall be an Appropriate Person within a period not exceeding two years from the date of seizure;
(d) If the Licensee disposes of his assets or business in compliance with the provisions of paragraph (a) the Licensee or the government shall have no claim against each other for any amounts pursuant to this Article;
(e) If the government is unable to sell the assets or business seized in accordance with paragraph (c) within the two-year period the Licensee is not entitled to claim any amounts according to this Article;
(f) If the government sells the abovementioned assets and business within the two-year period, it shall pay to the Licensee the proceeds of such sale after deducting 15 per cent and the costs and expenses stipulated in paragraph (b) and the cost of conducting the sale transaction, and also the amounts resulting from the rectification of the violation of the Licence conditions.