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SAUDI ARABIA

 

Electricity & Co-Generation Regulatory Authority (ECRA)                    
Key Statistics (2015)
Population 30.77 Million
GDP/Capita 2,795 billion SAR
Generation

Installed capacity 76,839 MW

Electricity Market Size 281 TWh
Net Electricity Import Currently, the GCCIA link is being used mainly for reserve sharing. In future, it is plan to use this link for commercial transfers also.
Natural Gas Imported 0
Natural Gas Consumed for electricity generation 1506 T BTU
Summary
Established in

2002

Organizational structure ECRA is supervised by a Board of Directors chaired by the Minister of Water and Electricity, with the Governor of the Authority as deputy chair, six members from senior government officials representing the ministries of Water and Electricity, Finance, Petroleum & Mineral Resources, Commerce & Industry, Economy & Planning, and the Saline Water Conversion Corporation (SWCC); and five members selected on their own merits.
Number of Commissioners 1
Number of staff 120
Budget Is financed through License fees.
Responsibilities

The Authority's Charter has charged it with a number of specific responsibilities. Article 3 of the Charter lists sixteen specific responsibilities that fall into four major groupings:

  • Supply Matters: dealing with license issuance, monitoring of license compliance, development of unified utility accounting procedures, coordination of organized infrastructure, and a services expansion plan.
  • Consumer Issues: dealing with tariff assessments and their periodic review, stakeholder protection, investigating and resolving complaints by involved parties, improving sector performance, and in coordination with the Ministry of Water and Electricity, promoting energy conservation measures.
  • Technical Issues: developing technical standards of performance for each electrical activity, monitoring compliance with the standards, ensuring adequacy of the industry's R&D activities, and other relevant technical matters.
  • Organizational and Administrative Tasks: defining public interest, development of regulations for infrastructure expansion, encouraging private sector investments, assessing licensing fees and penalties for non-compliance with licenses and/or the Authorities orders, and issuance of periodic reports by the Authority to the Council of Ministers on cost and tariffs of electricity services.
Authorities Electricity Law promulgated by Royal Decree no. (M/56) on 22 November 2005.
Legal basis

Electricity and Gas Law No. 123/2012

Government Emergency Ordinance no. 22/2008 regarding energy efficiency


Industry and Market Structure:

Electricity Market Structure:

Saudi Arabia has a single vertically integrated electricity company, Saudi Electricity Company (SEC), that owns most of the generation, all of the transmission and virtually all of distribution capacity, except in the industrial city of Yanbu where Marafiq is responsible for generation, transmission and distribution of electricity. However, there are a number of other generators, IPPs and IWPPs that are producing power and sell to SEC or supplying isolated loads. Some of the large consumers also have internal generation (Captive Generation) that is used to feed a large portion of their own load. There are also several entities who produce desalinated water and steam.

Natural Gas Market Structure:

National Gas & Industrial Company

Current Energy Issues:

ECRA has prepared an electricity industry restructuring plan. The major milestones of the plan includes unbundling SEC from a vertically integrated monopoly by organizing the generation and distribution into separate business lines and creating a separate transmission company operating independently of the generation and distribution activities.


Contact Information:
Address: PO Box 4540; Riyadh 11412; Kingdom of Saudi Arabia
Tel.: +966112019000
Web: www.ecra.gov.sa/english/index.htm

Summary
  • Established in 2002
  • ECRA is supervised by a board of directors chaired by the Minister of Water and Electricity, with the Governor of the Authority as deputy chair, six members from senior government officials representing the ministries of Water and Electricity, Finance, Petroleum & Mineral Resources, Commerce & Industry, Economy & Planning, and the Saline Water Conversion Corporation (SWCC); and five members selected on their own merits.
  • Number of Commissioners: 1
  • Number of staff: 118
  • Budget: Is financed through License fees approximately 100%
  • ECRA’s mandate covers the regulation of the electricity and water desalination industry in order to guarantee that the services of the industry are adequately provided to the country at the lowest prices consistent with high quality and reliability.
  • Electricity Law promulgated by Royal Decree no. (M/56) on 22 November 2005.
  • Responsibilities:

The Authority's Charter has charged it with a number of specific responsibilities. Article 3 of the Charter lists sixteen specific responsibilities that fall into four major groupings:

1. Supply Matters: dealing with license issuance, monitoring of license compliance, development of unified utility accounting procedures, coordination of organized infrastructure, and a services expansion plan.

2. Consumer Issues: dealing with tariff assessments and their periodic review, stakeholder protection, investigating and resolving complaints by involved parties, improving sector performance, and in coordination with the Ministry of Water and Electricity, promoting energy conservation measures.

3. Technical Issues: developing technical standards of performance for each electrical activity, monitoring compliance with the standards, ensuring adequacy of the industry's R&D activities, and other relevant technical matters.

4. Organizational and Administrative Tasks: defining public interest, development of regulations for infrastructure expansion, encouraging private sector investments, assessing licensing fees and penalties for non-compliance with licenses and/or the Authorities orders, and issuance of periodic reports by the Authority to the Council of Ministers on cost and tariffs of electricity services.

Industry and Market Structure

Electricity Market Structure:

  • Saudi Arabia has a single vertically integrated electricity company, Saudi Electricity Company (SEC), that owns most of the generation, all of the transmission and virtually all of distribution capacity. However, there are a number of other generators, IPPs and IWPPs that are producing power and sell to SEC or supplying isolated loads. Some of the large consumers also have internal generation (Captive Generation) that is used to feed a large portion of their own load. There are also several entities who produce desalinated water and steam.

Natural Gas Market Structure:

  • The Natural Gas is supplied by the national oil company Saudi ARAMCO.
Current Energy Issues
  • 1. ECRA has prepared an electricity industry restructuring plan. The major milestones of the plan includes unbundling SEC from a vertically integrated monopoly by organizing the generation and distribution into separate business lines and creating a separate transmission company operating independently of the generation, distribution and retail activities as well as operating on a non-discriminatory access to other industry participants.

SEC recently created the National Grid Company, a wholly owned power transmission subsidiary, as the first step in a multi-year restructuring of the company. Within this phase of the Restructuring Program, SEC will also create and spin off four generation companies and one distribution company

  • 2. ECRA will continue to work with stakeholders and relevant government agencies to create an enabling environment that promotes private sector participation and investment in generation through Independent Power or Water and Power Producers (I(W)PPs) Projects
  • 3. ECRA plans to promote the concept of the "Parallel Market" that permits large consumers to obtain their requirements of electricity services directly from the suppliers of their choice on the basis of mutually agreed prices and other commercial terms
Contact

Mailing Address: PO Box 4540; Riyadh 11412; Kingdom of Saudi Arabia.
Tel: (966 1) 1 2019034
Contact person: Dr. Abdullah M. Al-Shehri, Vice-Governor , Regulatory Affairs, Tel.: (966 1) 201-9034)
Internet: http://www.ecra.gov.sa/

 

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