Electricity Law

Without prejudice to the Competition Law, the Ministry and the Authority shall create an environment conducive to investment in the electricity activity to enhance reliability and availability of the electricity supply in different regions of the Kingdom, encourage private sector investment, and ensure the consumer’s right to choose from among service providers. The licensee must observe the following: 1. Register with the Authority any agreement concluded with another licensee or with consumers relating to prices, tariffs, right to use transmission or distribution networks, or right to use assets associated with the electricity activity, as specified by the regulations. If an agreement is concluded after this Law enters into force, any provision therein which conflicts with this Law, the Statute, or the regulations shall be deemed null and void. The Authority may approve such agreements in accordance with the regulations. 2. Refrain from entering into any agreement or making any arrangement that hinders or restricts competition in the electricity activity; any such agreement or arrangement shall be deemed null and void. 3. Refrain from violating regulatory requirements and instructions, including practices that restrict competition, especially if the licensee has a dominant position in the electricity activity. 4. Obtain the Authority's approval prior to any merger or acquisition of the majority of shares or assets. The Authority must be notified of any initial agreement on a merger. 5. Obtain the Authority’s approval prior to the acquisition of five percent or more of the shares of another licensee, all or part of his securities, or any other form of ownership rights, or the acquisition of a lesser percentage that may create a dominant position in any electricity activity, in accordance with the regulations. The regulations shall determine the rules for the implementation of this Article. Chapter 7: Development of the Structure of Electricity Activities