Details of the energy supply system approved by the Council of Ministers.. and 3 penalties for violators

Al-Marsad Newspaper: The Council of Ministers approved today 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 others.

Order details

A license must be obtained from the Ministry to practice activities related to natural gas and its liquids, which include transportation, processing, retailing, gas purification and assembly, storage, local distribution, import and export, and sale, as well as the establishment, ownership and operation of networks and facilities for natural gas and its liquids in accordance with the provisions of the executive regulations, which show fees Licenses and annual fees to be paid, according to Article Five of the system, which was previously put forward through a survey platform.

The licensee must also insure against his civil liability for damages resulting from his management of any activity subject to this system, as determined by the implementing regulations.

Upon expiration of the license, the ownership of all tangible assets – which the Ministry decides not to abandon – will revert to the state, and will be handed over to it in good condition except for normal use, unless the license stipulates otherwise.

Requiring 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 that requires energy allocation, oblige the license applicant to obtain an energy allocation letter from the Ministry. system, or any energy allocation book, except after obtaining a prior written approval from the Ministry.


With regard to penalties, the law provides for the punishment of anyone who violates any of the provisions of this law, executive regulations, or licenses. with one or more of the following penalties:

A- A fine not exceeding twenty (20) million riyals for each violation.

b- Suspension of the license in whole or in part for a period not exceeding one year.

c- Revocation of the license.


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