The Law for the Regulation and Privatisation of the Electricity and Related Water sector (”’the Sector Law”) promulgated by Royal Decree 78/2004 on 20 July 2004, as well as RD 78/2020.
Responsibilities
The Authority has a number of general and specific duties, largely reflecting key Government objectives for the electricity and related water sector in Oman. The Authority’s duties are set out in Article (22) of the Sector Law and includes but not limited the follows:
– 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 the elderly;
– 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;
– 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;
– Secure the Security of Supply in the Sultanate of Oman;
– Secure that Licensees are undertaking to meet all reasonable demands relating to Connection to the Total System and Supply;
– 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;
– Facilitate the Privatisation of the electricity and Related Water sector in the Sultanate of Oman;
– Secure the protection of Rural Customers and encourage Supply of electricity to them;
– 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;
– Ensure the financial and technical capability of Licensees;
– Secure the necessity for taking into consideration the protection of the environment;
– Meet its obligations regarding the procurement and sale of Imports and Exports of electricity and International Interconnection in accordance with the provisions of the Law;
– Secure the conduct of fair and transparent competitions for New Capacity and Output by the Oman Power and Water Procurement Company;
– Undertake not to unduly discriminate without legal justification between Persons and to act consistently in like cases;
– Secure the minimisation of regulatory burdens on Licensees or Exemption Holders;
– 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;
– Prepare a Public Register containing all that is relating to Licenses and Exemptions and any modifications 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;
– 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;
– Secure the preparation of criteria relating to the welfare of the Customer and to amend, maintain, follow up compliance and implement such criteria;
– Monitor the development of the electricity and Related Water market in the Sultanate of Oman.Article (25) of the Sector Law sets out the principal functions of the Authority which includes but not limited the follows:
– 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;
– 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;
– 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;
– Determine the form of Licenses in respect of each regulated activity, which is subject to the provisions of this Law;
– 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 organisations 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;
– Determination of the terms, rules, specifications and obligations, which Licensees and Exemption Holders shall comply with;
– Monitoring of the implementation of the terms and rules of Licenses or Exemptions by Licensees and Exemption Holders;
– Examination of complaints submitted by Customers and Licensees and taking prescribed procedures in respect thereof pursuant to the provisions of this Law;
– 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;
– Coordination with the relevant Ministries, government units and the Public Authority for Water with respect to all that is required for the development of the sector, and provision of consultation to the Public Authority for Water upon its request with respect to those matters which are within its competencies pertaining to the electricity and Related Water sector;
– Setting out rules to regulate the keeping and maintenance of records by Licensees in the manner specified by the Authority;
– Settlement of disputes arising between Licensees 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.
Authorities
• Independence: Complete administrative and financial autonomy. By Law no member of the government can hold position in the Authority. Complete separation from state treasury.
• Reports to the Council of Ministers.
• Appeal process: All decision subject to appeal before the Preliminary Commercial Court.
Organisational Structure
Internal Structure
Pursuant to Article (40) of the sector law, the Authority shall be constituted of 3 or 5 Members. Accordingly, on August 2020 the chairman of the Authority was appointed by the RD 81/2020, and 5 members were appointed as Board Members. Members are collectively responsible for managing the Authority’s affairs and for ensuring that the Authority fulfils all of its statutory obligations.
The Authority has 6 principal Directorates: Water and Wastewater, Energy, Sustainable Energy, Economic Regulation and Markets, Planning and Institutional Performance Development, Legal and Customer Affairs.
The Authority recovers all of its costs through licences fees and fees received by the Authority for the services provided by it, pursuant to Article (54) of the Sector Law.
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