TABLE OF CONTENTS To insure that supplies of electricity and desalinated water products provided to consumers in the Kingdom are: Adequate Reliable Of high quality, and Fairly priced. 1 TABLE OF CONTENTS © Electricity & Cogeneration Regulatory Authority King Fahd Library Indexing During Publication Electricity & Cogeneration Regulatory Anuthority 2014 Activities and Achievements Report 2013 - Riyadh 297x210mm 120 pages REDMEC 16583523 1. Electricity & Cogeneration Regulatory Authority- Reports-Saudi Arabia AZ 2. Dewey 1428-2329 2 TABLE OF CONTENTS 3 TABLE OF CONTENTS 4 TABLE OF CONTENTS ACTIVITIES AND ACHIEVEMENTS OF THE AUTHORITY IN 2013 August 2014 5 PART I 6 PART I TABLE OF CONTENTS 7 TABLE OF CONTENTS SubjectPage Subject Page SUMMARY OF THE REPORT 11 Chapter 4: LAWS AND REGULATIONS 36 PART I 4-1 Updating the Electricity Law Project 36 General Background 4-2 Updating the “Provision of Electricity Service Manual”: 36 Chapter 1: THE SECTOR AND THE INDUSTRY 18 36 1-1 The Electricity and Water Desalination Sector 18 4-2-1 Reducing the Period for a New Service Connection 1-2 The Electricity and Water Desalination Industry 19 4-2-2 Changing the Billing Mode of Small Value Bills 37 1-2-1 The Electricity Industry 19 4-2-3 Connection and Consumption Agreements 37 4-2-4 Updating the Rules for Service Disconnection and 1-2-2 The Water Desalination Industry 19 37 Collection of Debts 4-3 Study to Evaluate Power Purchase Agreements from Inde- Chapter 2: OVERVIEW OF THE AUTHORITY 20 38 pendent Power Producers 2-1 The Authority’s Goals and Remit 20 4-4 Preparation of a Framework for Regulation of Electric- 38 2-2 Organizational Structure of the Authority 21 ity and Desalinated Water Production Using Atomic and Renewable Energy 4-5 Codes Supervision Committees: 39 PART II 4-5-1 The Saudi Transmission Code 39 ACTIVITIES AND ACHIEVEMENTS OF THE 4-5-2 The Saudi Distribution Code 39 AUTHORITY IN 2013 4-5-3 The Water Desalination Code 39 Chapter 1: CONSUMER CARE 26 1-1 Updating the (Provision of Electricity Service Manual) 26 Chapter 5: LICENSING 40 1-2 Dissemination of Information Regarding the Mechanism of 26 Submitting Complaints Electronically 5-1 Permits 41 1-3 Field Visits to Facilities of a Service Provider 26 5-2 Licenses 41 1-4 Enhancing the Consumers Complaints Handling System 27 5-3 Exemptions from Licensing 41 1-5 Review and Handling of Consumers Complaints 28 5-4 License Forms 41 1-6 Plan to Provide Plantations, Villages, Hamlets , and Urban 31 Settlements with Electricity Service Chapter 6: E LECTRICITY AND WATER DESALINA- (OHFWULFLW\%LOO3DUWLDO6XEVLG\WR%HQHÀFLDULHVRIWKH6RFLDO 42 TION PLANS Security System 31 6-1 Development of the Electricity Industry Restructuring 42 3URSRVDOWR([SDQGWKH&DWHJRULHVRI%HQHÀFLDULHVRIWKH 31 Plan Electricity Bill Partial Subsidy 6-2 Long Term Plan for Water Desalination and Electricity 45 Generation Projects, and Determination of their Fuel Needs 32 Chapter 2: SERVICE PROVIDERS AFFAIRS 6-3 Study of Water and Electricity Uses 45 2-1 “Service Providers Affairs” Department 32 Chapter 7: S ERVICE QUALITY AND PERFOR MANCE 2-2 Electricity and Water Desalination Industry Accidents 32 46 MONITORING 2-3 Transgressions Against Service Providers Facilities 32 7-1 Auditing Licensees’ Performance KPIs 46 2-4 Handling Encroachments on the Electricity Lines Rights of Way 33 7-2 Plan for Enhancing Reliability of the Electricity Network 52 ,QFOXVLRQRI(&5$6HQLRU2IÀFHUVLQ6(&·V$XWRPDWLF$OHUW 7-3 Development of a Strategy for Smart Meters and Smart 33 54 System for Major Electricity Outages Grids in the Kingdom 7-4 Study of SEC's Financial and Accounting Performance 56 KPIs Chapter 3: TARIFFS 34 7-5 Electricity Interconnection with Regional Grids: 57 3-1 Charges for Use of the Transmission Network System 34 7-5-1 GCC Interconnection 57 3-2 Power Factor Improvement Incentives 34 7-5-2 Interconnection with the Arab Republic of Egypt 57 8 TABLE OF CONTENTS SubjectPage Subject Page Chapter 8: PUBLIC RELATIONS AND INFORMATION 58 PART IV 8-1 Second Publicity Campaign to Inform Consumers about 58 their Rights and Responsibilities THE ELECTRICITY AND WATER DESALINATION 8-2 The Electricity Industry Statistical Yearbook 58 INDUSTRY IN 2013 8-3 Advertising in the Blue Pages Directory of the Riyadh 74 58 Chapter 1: THE ELECTRICITY INDUSTRY Chamber of Commerce and Industry 1-1 Generation 74 8-4 Participation in Exhibitions Concurrent with Other Activities 59 8-5 Communications with the Media 59 1-2 Transmission 76 1-3 Distribution 76 Chapter 9: HUMAN RESOURCES AND FINANCIAL 82 AFFAIRS 60 1-4 Service Connection to Consumers 9-1 The Work Environment 60 1-5 Growth Trends in the Past Decade 84 9-2 Training and Scholarships 60 1-6 Fuel Types Used in Energy Production 85 9-3 Human Resources Development Project 61 9-4 Project for Measurement of the Authority’s Administra- 1-7 Energy Unit Cost 86 61 tive Performance 1-8 Government Subsidy to Reduce Electricity Sale Price to 86 9-5 ECRA’s Budget 61 Consumers 9-6 The General Reserve 63 1-9 Average Energy Unit Sale Price 87 Chapter 10: E-MANAGEMENT AND IT 64 10-1 E-Management 64 Chapter 2: THE ELECTRICITY TARIFF 88 10-2 “Murasalat” System 64 2-1 A Brief History of the Electricity Tariffs in the Kingdom 88 (OHFWURQLF&HUWLÀFDWLRQ 64 2-2 The Current Tariff 90 Chapter 11: OTHER ACTIVITIES 65 2-3 Residential Monthly Bill Data 94 11-1 Glossary of the Body of Knowledge on Infrastruc- ture Regulation 65 96 11-2 Cooperation with Regional and International Organizations 65 Chapter 3: WATER DESALINATION 11-3 Cooperation with King Abdulaziz City for Science and 3-1 Production of Desalinated Water 96 65 Technology 3-2 Transportation of Desalinated Water 99 11-4 Cooperation with King Abdullah Petroleum Studies and 65 Research Center (KAPSARC) 3-3 SWCC Annual Desalinated Water Production Capacity 100 3-4 Production Capacity Factor 100 PART III REPORT OF THE ELECTRICITY INDUSTRY 3-5 Electricity Generation in SWCC 100 DISPUTE RESOLUTION COMMITTEE 3-6 SWCC Restructuring Plan 100 Chapter 1: GENERAL BACKGROUND 68 1-1 Composition of the Committee 68 Chapter 4: PRIVATE SECTOR PARTICIPATION IN THE 1-2 Jurisdiction of the Committee 68 ELECTRICITY AND WATER DESALINATION 102 1-3 Modus Operandi of the Committee 68 INDUSTRY 4-1 The Electricity Industry 102 Chapter 2: ACTIVITIES OF THE COMMITTEE 69 4-2 The Water Desalination Industry 103 2-1 Cases Received by the Committee: 69 2-1-1 Cases on the Docket from Previous Years 69 APPENDIX 105 2-1-2 Cases Received by the Committee in 2013 69 AUTHORIZATIONS, LICENSES, AND EXEMPTIONS 2-2 Comparison with the Previous Year of Cases Received by 70 FROM LICENSING the Committee and Cases Resolved THE BOARD OF DIRECTORS 114 2-3 Analysis of Cases by Type of Complaint 71 EXECUTIVE MANAGEMENT 115 9 SUMMARYSUMMARY OF THETHE REPORTREPORT 10 SUMMARY OF THE REPORT SUMMARY OF THE REPORT 11 This report consists of four parts: Part I: Contains a general background of the electricity and water desalination* sector in Saudi Arabia including a EULHIGHÀQLWLRQRILWVFRPSRQHQWVDQGDQRYHUYLHZRI7KH(OHFWULFLW\ &RJHQHUDWLRQ 5HJXODWRU\$XWKRU- SUMMARY OF ity (ECRA). Part II:$LPVFKLHÁ\WRJLYHDFRPSOHWHSLFWXUHRIWKH$XWKRULW\·VDFWLYLWLHVDQGDFKLHYHPHQWVLQ THE REPORT Part III: Reports the activities of the Electricity Industry Dispute Resolution Committee***in 2013. Part IV: Presents a description of the state of the electricity and water desalination industry**** in 2013, and other issues related to this industry. 7KHIROORZLQJLVDVXPPDU\RIWKHPRVWVLJQLÀFDQWDFWLYLWLHVDQGDFKLHYHPHQWVRIWKH$XWKRULW\LQWKHÀVFDO\HDU 2013 within the purview of its mandate, listed in the order appearing in Part II of this report: Consumer Care Updating the “Provision of Electricity Service Manual”. Publishing a booklet explaining the procedure for submitting consumer complaints. 0DNLQJÀHOGYLVLWVWRVHUYLFHSURYLGHUVIDFLOLWLHVWRLQYHVWLJDWHFRQVXPHUFRPSODLQWV Enhancing the complaint handling system. Dealing with 452 consumer complaints regarding the Saudi Electricity Company (SEC) services, and resolving about 93% of those complaints. Continuing participation in the work of the committee responsible for the plan to connect electricity services to farms, villages, hamlets, and urban settlements. &RQWLQXLQJFRRSHUDWLRQZLWKWKH0LQLVWU\RI6RFLDO$IIDLUVWRLQFUHDVHWKHQXPEHURIEHQHÀFLDULHVRIWKHVRFLDO security system who receive electricity bill payment assistance. * Water Desalination: The process of producing desalinated water without concomitant production of electricity or steam. ** Cogeneration: The simultaneous production of electricity and desalinated water (or steam, or both steam and desalinated water) used in other production pro- cesses. *** Electricity Industry Dispute Resolution Committee: A committee, independent of the Authority, formed by a Council of Ministers decision. **** The electricity and water desalination industry: Electricity services that Persons undertake or intend to undertake, which include electricity generation, cogenera- tion, transmission of electricity, its distribution, supply and trading; water desalination, its transportation to points of distribution, and trading in desalinated water. 12 Service Providers Affairs Creating a new “Department of Service Providers Affairs”. ,QYHVWLJDWLQJHOHFWULFLW\DFFLGHQWVWKDWUHVXOWHGLQÀYHIDWDOLWLHVLQVHUYLFHSURYLGHUIDFLOLWLHV 7DNLQJFKDUJHRILPSRVLQJÀQHVDQGDVVHVVLQJGDPDJHVFDXVHGE\WUDQVJUHVVLRQDJDLQVWIDFLOLWLHVRIWKHHOHFWULFLW\ SUMMARY OF service providers. THE REPORT Handling cases of encroachment on electricity lines rights of way. $GGLQJWKH$XWKRULW\·VVHQLRURIÀFHUVWRWKH6(&PDMRUHOHFWULFLW\RXWDJHVDXWRPDWLFDOHUWV\VWHP