Prohibition of monopoly and electronic invoices.. "Energy" Specifies the conditions for licensing gas networks
The regulations stressed the need for the licensee to obtain all the necessary requirements and approvals in accordance with the relevant regulations, and to ensure that all devices, equipment and processes related to the activity conform to the standards approved by the competent authorities, most notably the Saudi Standards, Metrology and Quality Organization, and adherence to the Saudi building code, in a way that ensures the integration of the technical and construction aspects with the requirements. Safety.
It required that the engineering design of the network be issued by an engineering office accredited by the Saudi Council of Engineers, with the licensee obligated to install metering meters for consumers, and to conduct annual periodic inspection and periodic maintenance of all devices, equipment, the network and its accessories, including regulators, gas valves, gas leakage alarm systems, and consumption measuring meters.
Occupational safety and health are a top priority
The regulation stressed the necessity of implementing a system Integrated occupational safety and health in accordance with global standards, such as those of the Occupational Safety and Health Administration (OSHA), with workers required to wear equipment It obligated the licensee to carry out all necessary improvements, additions and repairs to the assets, and to replace assets that had expired, were damaged, or whose periodic inspection proved unsafe, in order to ensure continuity of service without interruption or potential risks. In the same context, it obligated the preparation of a comprehensive plan for safety, reliability, maintenance and technical management, which includes the operation of systems Gas in a way that reduces risks to property, the public, and consumers, conducting a comprehensive quantitative risk assessment, carrying out connection work through qualified specialists, and providing means of completely or partially isolating the network in emergency situations, in addition to preparing clear operating and maintenance manuals, specific procedures for opening and closing meters, and carrying out operations by technicians trained to confront emergencies. From an economic and regulatory perspective, the regulations prohibit the licensee from carrying out any practices that limit or disrupt fair competition in gas activities. It also stipulated obtaining prior approval from the Ministry before ceasing to practice the activity. The regulation allowed a person to practice more than one of the activities subject to the system, provided that the gas network activity is accountingly independent from the rest of the activities, in a way that enhances transparency and prevents overlapping of costs and revenues. It organized the mechanism for settling disputes between licensees in the independent gas distribution network activity and the activity of transporting gas from its sources to liquid petroleum gas facilities or the distribution network, as it allowed either party to submit a request. An amicable settlement to the Ministry, granting it the authority to take the necessary measures to ensure the continued provision of the service without affecting consumers. The regulation specifies the characteristics and specifications of gases subject to the provisions of the system, as it defined dry gas as a mixture based on methane and ethane with small percentages of other hydrocarbon compounds, provided that the percentage of nitrogen does not exceed 3%, with the requirement that the standard specifications of dry gas supplied by the Saudi Arabian Oil Company (Saudi Aramco) conform to the specification. (120-A). The regulation touched on alternative natural gas, which is produced by mixing liquid petroleum gas with air in an average ratio of approximately 60/40, provided that the mixing ratio is determined based on calculating the “Wobbe” index to ensure that the combustion characteristics are similar to dry gas, in a step that reflects a precise technical interest in unifying the supply characteristics and ensuring operating efficiency. The regulation specifies the conditions for granting The license, which includes providing the Ministry with the necessary documents and the operational plan, paying the financial fees, and obtaining permits and approvals from the relevant authorities, such as the commercial registry, the Ministry of Investment’s license if the investment is foreign or joint, and the approval of the General Directorate of Civil Defense. As for renewing the license, it obliges the licensee to apply for renewal up to 36 months before the license expires for the activity of establishing a dry gas distribution network, and 12 months for the activity of establishing a gas distribution network. Independent gas network, with payment of fines – if any – and payment of the financial fee for renewal. It also regulated the conditions for amending and transferring the license, ensuring that no violation of any aspect of the gas network’s activity is done, and that the requirements for granting the license and paying the recorded financial fines are met. The regulations set the financial fee for issuing or renewing the license at 20 thousand Saudi riyals for the activity of establishing a dry gas distribution network for a period of 15 years, and 5 thousand riyals for the activity of establishing an independent gas distribution network for a period of 15 years. 5 years, paid once before granting the license or when renewing it. The regulations require the licensee, after completing the construction work, to apply for the Ministry’s approval before starting the service, attaching a certificate of completion of the works, a certificate of conformity from a third party, an agreement to purchase petroleum products from Saudi Aramco, a plan to connect the receiving station, and an inventory of assets approved by an external auditor. The regulation uploaded to the licensor. It has precise technical responsibilities, including obtaining dry gas from its source according to the approved standards, distributing it according to the approved tariff, and obtaining a valid completion certificate for mechanical works from Saudi Aramco for the facilities under its supervision. It was obligated to prepare a service delivery agreement for the consumer that includes procedures for connecting, modifying, disconnecting and restoring the service, mechanisms for billing, reading meters, objecting to bills, receiving complaints, compensation for damages, dealing with cases of force majeure, and a mechanism for entering consumer ownership, in a way that enhances the protection of the rights of beneficiaries, in a way that enhances the protection of the rights of beneficiaries. It establishes the principles of transparency. Article 12 stipulates a set of technical responsibilities binding on the licensee in the activity of establishing an independent gas distribution network, ensuring the discipline of the supply and distribution chain in accordance with clear regulatory frameworks. The regulations required the licensee to obtain liquid petroleum gas from the licensee who is actively licensed to transport liquid petroleum gas from its sources to the liquid petroleum gas facilities or to the independent distribution network, according to the approved transportation fees, which reflects a clear separation between transportation and distribution activities. It also obligated the licensee to distribute liquid petroleum gas to consumers in accordance with the approved tariff, taking into account the requirements of the relevant authorities and their requirements when choosing the site for establishing the independent network, and regulating the entry mechanism for tanks and other means of transportation. And its exit, in a way that achieves traffic, technical and environmental safety requirements. With regard to consumer protection and regulating the contractual relationship, the regulations require the preparation of a service delivery agreement consistent with the service provision guide, and providing the ministry with a copy of it, provided that it includes in detail the procedures for service delivery, modification, disconnection, return and cancellation, mechanisms for applying consumption pricing, calculating quantities and billing, and a statement of the consumer’s rights and duties and the obligations of the service provider. The agreement also included the mechanism for issuing invoices and means of payment, procedures for disconnecting service based on statutory reasons such as consumer request or non-payment of invoices, procedures for terminating the agreement, the mechanism for reading the meter and objecting to invoices, receiving and processing complaints, a mechanism for compensation for potential damages at the consumer’s site, regulating cases of force majeure, and procedures for entering the consumer’s property when technically necessary. In Article Thirteen, the regulations set detailed requirements for issuing invoices, without prejudice. With the jurisdiction of other entities, it required that the invoice include the name of the service provider, its data, and its commercial registration number, and that it be an electronic tax invoice written in Arabic and English. It also required the inclusion of the consumer’s name, subscription number, and tax number if his activity is commercial, in addition to the invoice printing number and date, type of payment, value-added tax, and total invoice, with a statement of the item number and description, whether it is dry gas, liquid petroleum gas, or alternative gas, the serial number, quantity, and price. Unit and service fees – if any – as well as the address of both the supplier and the customer, in a framework that enhances transparency and accounting accuracy. Article seventeen enshrined the concept of safe supply of gas, as it obligated the licensee to immediately inform the Ministry of any event that might affect the security of supply, with an explanation of the measures taken to address it. It also imposed the provision of a stock of no less than ten days’ consumption according to the average daily consumption of all Consumers of the independent distribution network, providing a study that determines the optimal stock according to the size and number of consumers, preparing emergency response plans and annual plans for the quantities of supplies needed and reviewing them every six months, in addition to business continuity plans that are documented, periodically updated and tested to ensure their effectiveness. Article Eighteen regulates the procedures for evaluating the activity of establishing a dry gas distribution network upon cancellation of the license, as the Ministry is responsible for reviewing the basic network assets and ensuring the safety of the systems, devices and extensions. Its efficiency, and implementing the procedures for transferring ownership of the network to the state in accordance with the provisions of the license, with the possibility of seeking assistance from a third party to carry out evaluation tasks. Regulating competition and preventing monopoly
Determining the characteristics and specifications of gases
License conditions and financial compensation
Start of service and technical obligations
Tariff and consumer protection conditions
Strict controls for issuing invoices
Security of supply… Mandatory stock and emergency plans
Evaluating the network upon cancellation of the license
