Latest news with #ElectricityLaw
Gulf Insider
07-07-2025
- Business
- Gulf Insider
Saudi Fines Up to SR100K for Electricity Meter Tampering
Saudi Arabia's Electricity Regulatory Authority has introduced sweeping amendments to its enforcement regulations, significantly increasing penalties for violations under the Kingdom's Electricity Law. The amendments, approved this week, include updated fine assessment mechanisms and stricter penalties based on the severity and circumstances of each infraction. Among the most notable amendments are steeper fines for tampering with electricity meters. Offenders now face penalties ranging from SR5,000 to SR100,000, depending on the breaker's amperage capacity. For example, tampering with a meter connected to a 100-amp or smaller breaker carries a SR5,000 fine, while tampering with one over 400 amps could incur the maximum SR100,000 penalty. Violations involving individuals who do not own the meter account or are not actual beneficiaries will automatically incur a SR50,000 fine — subject to increase if the violation is deemed serious or has been repeated more than twice, as per the criteria set by a designated committee. The amendments define 10 core violations, including failure to comply with the authority's directives in handling complaints (SR20,000) and failure by licensed entities to provide requested information (up to SR100,000). Other violations include SR2,000 fine for missing statutory deadlines related to electrical services, SR50,000 for non-compliance with performance standards, and SR3,000 for violations related to small-scale photovoltaic systems and electric vehicle charging frameworks. The new regulations also update procedures for assessing repair costs and compensation in cases of meter tampering. If a tampering incident causes a reduction in consumption, the responsible party must cover the cost of the unrecorded electricity as well as repair expenses. For residential users, repair costs range between SR250 and SR1,150 if the meter remains intact, and SR1,150 to SR4,050 if a replacement is needed. In non-residential cases, fines range from SR300 to SR2,050 (no replacement), and SR1,150 to SR4,950 (with replacement). A new provision targets direct, unmetered connections to the national grid. In such cases, violators must cover the value of unregistered consumption and pay for grid repairs based on the cable's diameter. Fines range from SR1,300 to SR17,000 for residential and SR1,700 to SR33,000 for non-residential connections. The authority also introduced requirements for service providers to remove violations, repair damage, and refer cases for compensation claims. Providers must complete all legal procedures related to enforcement and cost recovery. Also Read: Riyadh Financial Hub Earns Guinness Record For 15.46 km Pedestrian Skyway
Saudi Gazette
05-07-2025
- Saudi Gazette
Fines for tampering with electricity meter range between SR5000 and SR100000
Saudi Gazette report RIYADH — The Saudi Electricity Regulatory Authority has approved new amendments to the regulations for detecting, proving, and adjudicating violations in the provisions of the Electricity Law. These amendments include increased penalties and updated fine assessment mechanisms after examining the nature and circumstances of each violation. The authority emphasized in the amendments the importance of considering the severity of the violation and aggravating circumstances when determining penalties. The penalties include fines that range between SR5000 and SR100000 for those found guilty of tampering with electricity meter. The fine was set at SR5,000 if the breaker capacity is 100 amps or less, and it will raise to SR15,000 for breaker capacity between 100 and 150 amps. The fine for tampering with the electricity meter with a breaker capacity between 150 and 400 amps is SR50,000, and the fine would reach SR100,000 if the capacity is more than 400 amps. The amendments stipulate that the fine for tampering with an electricity meter or any of its accessories shall be SR 50,000 if the violator does not own the account for the meter in question or is not an actual beneficiary of it. This amount may be exceeded if the consequences of the violation are proven to be serious or have been repeated more than twice, in accordance with criteria determined by the competent committee. The authority noted that the amendments cover ten basic violations, most notably failure to implement the authority's directives regarding handling complaints, which carries a fine of SR20,000, and failure of the licensee to cooperate in providing the authority with the required information, which carries a fine of up to SR100,000. The amendments also include a fine of SR2,000 for failure to comply with the statutory deadlines stipulated in the regulations relating to electrical services provided to consumers, and a further fine of SR50,000 for failure to comply with the authority's performance standards, which the licensee must adhere to. The amendments also included other violations, such as failure to comply with the regulatory framework for small-scale photovoltaic solar energy systems and failure to comply with the regulatory framework for electric vehicle charging activities, each of which carries a fine of SR3000. The authority also amended the regulations for determining repair costs and assessing compensation for lost benefits to the utility or third parties due to tampering with the electricity meter. If the tampering results in a malfunction, interruption, or reduction in electricity consumption, the beneficiary shall be required to pay the value of the unrecorded consumption and the costs of repairing any damage to the meter or any of its accessories. If the incident does not require meter replacement, the fixed value of repair costs and lost utility for residential consumption ranges between SR250 and SR1,150, depending on the breaker's amperage capacity, which ranges between 100 and 400. If the incident requires meter replacement, the fine ranges between SR1,150 and SR4,050, depending on the same capacity. For non-residential consumption, if meter replacement is required, the fine ranges from SR300 to SR2,050, while it ranges from SR1,150 to SR4,950 if the incident does not require meter replacement. The amendments added a new article stipulating that in the event of a direct connection to the electricity grid without a meter, the beneficiary is required to pay the value of the unregistered consumption, in addition to the costs of repairing any damage to the grid or any of its accessories, depending on the diameter of the connecting cable. Fines in this case range from SR1,300 to SR17,000 in the residential sector, while they range from SR1,700 to SR33,000 in the non-residential sector. The amendments also require the service provider to remove the violation and repair the resulting damage after completing documentation procedures. They also require the service provider to refer the violation to the authority to claim the repair costs and lost utility benefits, and to complete the necessary legal procedures in this regard.
Daily News Egypt
24-06-2025
- Business
- Daily News Egypt
Prime Minister revokes industrial electricity discount as of 1 July
In a significant policy shift, Prime Minister Mostafa Madbouly has issued a decree cancelling the electricity price reduction granted to industrial activities since 2020. The change, effective from 1 July 2025, marks a reassessment of Egypt's approach to industrial energy subsidies. The now-revoked Decree No. 781 of 2020 had offered a discount of 10 piastres per kilowatt-hour for electricity supplied to industrial consumers using ultra-high, high, and medium-voltage connections—applicable both during peak and off-peak hours. Introduced during a period of economic strain, the measure aimed to support industrial competitiveness and stimulate growth. The revocation reflects the government's renewed focus on public spending reform and fiscal consolidation, amid mounting financial pressures. The decision follows a legislative review involving the Public Finance Law and the Electricity Law, and was approved by the Cabinet. The change is expected to affect a broad range of industrial sectors that have benefited from reduced energy costs over the past five years. With energy rates returning to standard levels, companies may be forced to reassess cost structures, production strategies, and pricing models. No official announcement has been made regarding alternative support for impacted industries. However, the move aligns with the government's broader strategy to transition towards more targeted and economically sustainable subsidy schemes, particularly in response to global energy market fluctuations and rising production costs. Industrial stakeholders are now watching closely to see whether the government will introduce any mitigating measures ahead of the July implementation deadline.
Web Release
10-06-2025
- Business
- Web Release
EBRD supports Egypt with first private-to-private electricity contracts
Energy market reform is taking a major step forward in Egypt as the government approves the first bilateral power purchase agreements between private generators and consumers. As part of a pilot of the private-to-private (P2P) rules, developed with technical support from the EBRD to the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egypt ERA) and approved last year, four renewable energy projects with a combined capacity of 400 MW have been approved to contract directly with end-consumers of electricity. The four approved projects are: KarmSolar, which will develop a 100 MW solar plant to supply electricity to Suez Steel. AMEA Power, which is building a solar facility of the same size to serve BEFAR Group and the Suez Canal Container Terminal. TAQA PV, which will install 100 MW of hybrid capacity (solar and wind) to power operations at Ezz Steel. Enara, developing a hybrid plant to deliver 100 MW to the El Alamein Silicone Products Company and Helwan Fertilizers. The P2P rules set out the conditions under which generators can use the power grid to sell electricity directly to consumers, a major departure from the existing single-buyer model and a significant step forward in Egypt's efforts to liberalise its electricity market – a goal set out in the 2015 Electricity Law. This approach introduces competition into the electricity sector, expands consumer choice and promotes private investments in renewable energy. It also introduces a path for Egyptian businesses, especially those that are energy-intensive and focused on the export market, to sign agreements directly with renewable energy producers that are increasingly required to prove their low carbon product credentials, for example green hydrogen destined for the European market. Furthermore, given the electricity generation under these contracts will be entirely privately financed, the P2P scheme represents an important route for Egypt to scale up electricity production without the need for government contracts. Mark Davis, the EBRD's managing director for the southern and eastern Mediterranean region, said: 'This milestone shows how the right regulatory framework can unlock private investment and drive the energy transition. By enabling companies to procure green electricity directly from producers, Egypt is opening new opportunities for industry and enhancing its competitiveness. We are proud to have supported EgyptERA in designing this pioneering scheme and will continue working closely as projects move towards implementation.' Dr Mohamed Mousa Omran, the chairman of EgyptERA, said: 'This pilot marks an important step towards a more competitive electricity market in Egypt. By enabling direct agreements between producers and consumers, we are creating space for the private sector to play a greater role in meeting the growing demand for clean energy in Egypt. This is essential for accelerating the deployment of renewables at scale and achieving our long-term energy goals.' The EBRD's technical support is generously funded by the Swiss State Secretariat for Economic Affairs (SECO), a key partner for the Bank in many of its ongoing policy engagements that aim to decarbonise the energy sectors of its countries of operation. This work is being delivered under the EBRD's Renewable Energy Programme, which is currently supporting 16 countries in their development of market-based mechanisms to mobilise private investments. To date, activities under this programme have delivered over 8,500 MW of renewable energy capacity being awarded in 8 countries.
Daily News Egypt
28-05-2025
- Business
- Daily News Egypt
Egypt approves $388m in private renewable energy projects for direct industrial supply
Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, has awarded qualification certificates to four companies selected to operate under the country's newly adopted private-to-private (P2P) power agreement model. The initiative allows private energy producers to generate and sell electricity directly to industrial consumers, marking a transformative step in Egypt's energy liberalization strategy and commitment to sustainable development. The approved projects represent a combined capacity of 400 megawatts and total investments of $388m. Each company will build its own renewable energy power plant and supply electricity directly to industrial clients, while paying a transmission fee to the Egyptian Electricity Transmission Company (EETC). These agreements are structured with no financial burden on the state and do not require sovereign guarantees. Among the newly qualified projects, Neptune for Electricity Production and Sales will supply solar power to the Suez Steel Plant. AMEA Power will provide electricity from its solar facility to the Suez Canal Container Terminal and Bivar Group for Chemicals. TAQA PV is set to supply Ezz Steel through a hybrid solar and wind power station, while ENARA for Renewable Energy Services will generate electricity from a hybrid facility for both the Helwan Fertilizers plant and the Alamein Silicon Products Complex. Minister Esmat stated that the initiative is being implemented in line with Egypt's Electricity Law, which is designed to open the market to competition, enhance efficiency, and attract private investment. He emphasized that liberalizing the electricity sector is a key strategic step in building a dynamic, competitive energy market that reduces costs, improves service quality, and strengthens Egypt's role as a regional energy hub. The Minister highlighted that the P2P framework enables industrial consumers to secure reliable, renewable electricity while contributing to their climate goals. These projects will also allow companies to certify their clean energy usage and reduce emissions, facilitating access to green export markets. Esmat noted that the Egyptian Electric Utility and Consumer Protection Regulatory Agency had completed its review of qualification submissions from seven companies, each proposing 100-megawatt renewable energy projects. The evaluation process was conducted in collaboration with a global consulting firm and the European Bank for Reconstruction and Development (EBRD), which helped develop the regulatory guidelines and legal framework for the P2P agreements. He reaffirmed the Ministry's commitment to building a transparent and investor-friendly environment that enables both producers and consumers to actively participate in Egypt's energy transition. These efforts are integral to supporting the national green economy agenda, expanding renewable energy capacity, and modernizing the country's power infrastructure.
