Article 16 of the Saudi Electricity Law

This article opens transmission and distribution networks to other licensees and sets the technical rules for them:

First: access to the network. Any licensee, when needed, may:

• Use an electricity transmission or distribution system owned by another licensee.
• Or connect to it.

This is subject to three controls: it must be for a charge, without discrimination, and in accordance with the provisions of the law and the regulations. The network owner does not provide the service free of charge, but it may not discriminate between licensees in making it available.

This provision matters because transmission and distribution networks are hard to duplicate. If their owner had exclusive use of them, a new generator could not deliver its output to buyers. The provision is therefore tied to the idea of competition.

Second: the network code:

• It is issued by the owner of the transmission or distribution network, at the request of the Authority, within a period the Authority sets.
• The Authority reviews and approves it.
• It is reviewed periodically as the Authority considers necessary to achieve the objectives of the law.

The article does not state the content of the network code. It is a document issued by the owner and approved by the Authority.

Article 15 comes before it and covers protecting investors and consumers in the move to an electricity market. Article 17 follows and treats as violations using the electrical system or connecting to it in an irregular manner. Connection is therefore allowed, but only in accordance with the law and the regulations. If there is a dispute over the terms of connection, a licensee may consult a lawyer who specializes in commercial or administrative cases.