Al-Marsad newspaper: The Cabinet of Ministers today approved the Energy Supply System, which aims to regulate the allocation of energy to its consumers in each of: electricity, crude oil refining, petrochemicals, water desalination, industry, mining, agriculture, construction, communications, transportation, logistics and more.
Order details
It is necessary to obtain a license from the Ministry to engage in activities related to natural gas and its liquids, which include the transportation, processing, retail sale, purification and assembly of gas, storage, local distribution, l import and export and sale, as well as the establishment, ownership and operation of networks and plants of natural gas and its liquids in accordance with the provisions of the executive regulation, which sets out the concession fees and annual fees to be paid, according to art. platform.
The concessionaire must also insure himself against his civil liability for damages resulting from his operation of any business subject to this regime, as determined by the implementing regulation.
Upon expiry of the license, ownership of all tangible assets – which the Ministry decides not to abandon – will revert to the State, and will be delivered to it in good condition except for normal use, unless the license provides otherwise.
Require the license applicant to obtain an energy allocation letter from the Ministry
The system also stipulates that all government agencies must, before issuing any license to engage in any activity requiring energy allocation, oblige the license applicant to obtain an energy allocation letter from the Ministry. subject to written authorization from the Ministry.
Sanctions
As for penalties, the law provides that anyone who violates any of the provisions of this law, executive regulations or licenses will be punished. with one or more of the following sanctions:
A- A fine not exceeding twenty (20) million riyals for each violation.
b- Total or partial suspension of the license for a period not exceeding one year.
c- Revocation of the licence.