Article 2 of the Saudi Electricity Law
المادة 2 من نظام الكهرباء · الفصل الثاني: أحكام عامة
The article sets out ten objectives of the Electricity Law, chiefly protecting consumer rights and service reliability, encouraging legitimate competition, protecting licensees, and involving the private sector.
Official text (Arabic)
This article has not been amended since the law was issued.
يهدف النظام إلى ما يأتي:
1- الارتقاء بخدمة الكهرباء التي تقدم للمستهلك وحماية حقوقه، بما في ذلك حقه في الحصول على الخدمة الكهربائية بموثوقية وكفاءة عاليتين، والاختيار بين المتنافسين المرخص لهم بنشاط كهربائي، وبأسعار تنافسية معقولة، تحقق العدالة بين المستهلكين.
2- العمل على تهيئة بيئة مناسبة لتشجيع التنافس المشروع في الأنشطة الكهربائية.
3- ضمان التزام قطاع الكهرباء بسياسات الدولة، وتوجيهاتها، بما يحقق النمو الاقتصادي ورفاهية المجتمع.
4- تسهيل فرص حصول المستهلكين على الإمدادات الكهربائية، والعمل على إيصال الخدمات الكهربائية إلى المناطق التي لم تصلها الخدمة الكهربائية.
5- توفير إمدادات كهربائية مأمونة وموثوقة، ويمكـن الاعتماد عليهـا، وذات كفاءة عالية، وبأقل تكلفة ممكنة.
6- حماية حقوق ومصالح المرخص لهم، وتوفير إطار تنظيمي للأنشطة الكهربائية للقطاعين العام والخاص، يكون واضحاً، ومستقراً دون تمييز.
7- تشجيع القطاع الخاص على المساهمة والمشاركة في التوسع المنهجي في الأنشطة الكهربائية، بما يمكنه من تحقيق عائد اقتصادي عادل وفق أسس تجارية.
8- تطوير هيكلة قطاع الكهرباء في المملكة باتباع عملية عادلة فاعلة تعزز التنافس في أنشطة الكهرباء.
9- تشجيع أعمال البحوث والتطوير، وتوطين التقنية والوظائف والخدمات في هذا المجال.
10- التأكد من التزام قطاع الكهرباء بالأنظمة والمقاييس والمعايير البيئية والسلامة المعتمدة في نشاط الكهرباء.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article sets out the goals the Electricity Law aims to achieve. They can be grouped into themes:
Consumers:
- Improving the service and protecting consumers' rights, including the right to receive the service with high reliability and efficiency, to choose between competing licensees, and to pay reasonable, competitive prices that are fair between consumers.
- Making it easier for consumers to obtain supplies, and extending the service to areas it has not yet reached.
- Providing safe, reliable and highly efficient supplies at the lowest possible cost.
The market and investors:
- Creating an environment that encourages legitimate competition in electricity activities.
- Protecting the rights and interests of licensees, and providing a clear, stable and non-discriminatory regulatory framework for the public and private sectors.
- Encouraging the private sector to participate in a way that gives it a fair economic return on commercial principles.
- Developing the structure of the sector through a fair and effective process that promotes competition.
The State and society: ensuring that the sector complies with State policies and directives so as to achieve economic growth and the welfare of society, encouraging research and development and the localization of technology, jobs and services, and making sure environmental and safety standards are followed.
These objectives do not by themselves create detailed obligations, but they show the spirit of the law and help in understanding its articles. Article 3 follows and sets out what the Ministry is responsible for in order to achieve these objectives, without prejudice to the powers of other government bodies.
Practical example
A family lives in a village in the Jazan region that the electricity grid has not yet reached. Among the objectives stated in the law are working to bring electricity service to areas it has not reached and making it easier for consumers to obtain supplies.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 2 of the Saudi Electricity Law
What are consumer rights under the Electricity Law?
Among the law's objectives are protecting the consumer's right to receive the service with high reliability and efficiency, to choose between licensed competitors, and to pay reasonable, competitive prices that are fair between consumers.
Does the Electricity Law encourage private sector participation?
Yes. One of its objectives is to encourage the private sector to contribute to and take part in electricity activities, giving it a fair economic return on commercial principles.
More articles on Definitions and Aims of the Electricity Law
- Article 1
The article defines the terms used in the Electricity Law, such as the Ministry, the Authority, electricity activity, license, exemption, licensee, consumer, tariff and price.
يقصد بالألفاظ والعبارات الآتية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتض السياق غير ذلك: الوزارة: وزارة الطاقة. الوزير: وزير الطاقة. ا
- Article 22
The article divides issuing the Electricity Law's Implementing Regulations between the Minister, for the Ministry's tasks, and the Council, for the Authority's tasks, within 180 days of publication, effective from the date the law takes effect.
1- يصدر الوزير اللائحة التنفيذية للنظام فيما يتعلق بمهمات الوزارة خلال (180) مائة وثمانين يوماً من تاريخ نشر النظام في الجريدة الرسمية، ويعمل بها من تاريخ نفاذه
- Article 23
The article provides that the Electricity Law takes effect 180 days after publication and replaces the Electricity Law issued by Royal Decree No. M/56 dated 20/10/1426 AH and its amendments, repealing whatever conflicts with it.
1- يعمل بالنظام بعد (180) مائة وثمانين يوماً من تاريخ نشره بالجريدة الرسمية. 2- يحل النظام محل نظام الكهرباء الصادر بالمرسوم الملكي رقم (م / 56) وتاريخ 20 / 10
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.

