Ministry seeks public input on energy allocation regulations

Logo of The Ministry of Energy

Saudi Arabia’s Ministry of Energy started on Jan. 21 a poll on the Istitlaa platform to solicit the public's views on the draft energy allocation regulations. The poll runs until Feb. 5.

These regulations aim to regulate the allocation of energy to its consumers in the areas stipulated in Article (2) of the Energy Supply Law to achieve the optimal uses of energy and contribute to raising the level and diversification of the national economy.

They also aim to achieve the goals of the energy mix, raise levels of energy efficiency, promote the circular carbon economy (CCE), and manage greenhouse gases in a manner that does not conflict with the strategies approved by the Supreme Committee for Hydrocarbon Affairs and the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector.

Article 7 of the regulations stipulates that the ministry may amend or cancel the quantities of energy specified in the energy allocation document and notify the allottee of this in cases of force majeure and exceptional circumstances that lead to a shortage of available energy.

Article 8 stipulates that the ministry may amend or cancel the energy quantities specified in the energy allocation document and notify the allottee of this if a year passes without utilizing the full amounts of energy, unless the allotted person provides reasons acceptable to the Ministry.

However, the amendment shall not allocate less than the energy quantities actually used by the allottee. The ministry is to notify the allotee of such amendment or cancellation within a period of not less than 120 days.

According to Article 9, the allocation document is not considered an approval to practice the activity required by the allocation, and the allottee must obtain special licenses and approvals to practice the activity in accordance with the regulations in force within the Kingdom.

Article 10 stipulates that the allottee must adhere to the terms and conditions of the energy allocation document regarding the activity’s scope of work and products, the efficiency of the techniques used, percentages of spending localization, and schedules, as well as any other condition or provision that fulfills one or more of the allocation criteria approved by the committee.

According to Article 11, the allottee is required to refrain from using energy for purposes other than the allocation mentioned in the energy allocation document.

Moreover, the allottee must also provide data, information, and documents required by the ministry to ensure compliance with the law’s provisions, the allocation regulations, and the energy allocation document.

The article further states that the allottee is to submit periodic reports to the ministry in accordance with the terms and conditions of the energy allocation document, including a summary of energy consumption for the purpose of allocation, operational performance, production statistics, and updating the schedule for activity implementation stages.

Article 11 also stipulates to notify the ministry of any change that has occurred or is expected to occur in its information or data provided in the allocation request, or any delay and difficulties in the activity’s start date, or any expected or actual change in the purpose of the allocation, or when its actual consumption of energy quantities decreases below the amount specified in the energy allocation document.

This shall be within a period not exceeding 30 days from the date of the occurrence of any of these circumstances.

In addition, the allottee is required to submit an amendment to the energy allocation document or request its termination within a period not exceeding 30 days from the date of the notification aforementioned in this article.