Electrical Losses
Electrical loss refers to the difference between the amount of energy purchased and sold, divided by the amount of energy purchased. The causes of electrical losses can be technical, related to the network, or non-technical, such as administrative factors. The Energy and Minerals Regulatory Commission sets the limits for the allowable percentage of electrical losses for the licensees involved in transmission and distribution, as well as retail supply, based on the announced electricity tariff period. The Commission also monitors the electrical loss rates across the electricity network and develops plans to reduce these losses and combat illegal electricity consumption.
With the ongoing and increasing demand for electrical energy, there is a growing need for the electricity sector to make additional efforts to monitor the growth rates of electricity demand, ensure the stability of the electrical grid, and ensure a reliable electricity supply throughout the Kingdom. This is essential for controlling and reducing electrical losses and improving the financial, administrative, and technical performance in distribution networks.
Oversight and Inspection
Through its regulatory role, the Authority seeks to implement inspection programs for all activities subject to regulation to ensure that the licensee complies with the law, applicable regulations, and any other conditions outlined in the licensing requirements. The goals include:
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Ensuring compliance with the Electricity Law, regulations, and the granted license.
Identifying lessons learned in the energy sector and applying them as required.
Ensuring that the facility, equipment, and work performance meet all applicable requirements.
Identifying violations and shortcomings and correcting or justifying them without delay
In case of any violations or failure to meet applicable requirements, the Authority has the authority to take enforcement actions against the licensee, such as imposing fines.