Power shift ahead

TDT | Manama

Email: mail@newsofbahrain.com

A draft law would dissolve the Electricity and Water Authority, set up a National Electricity and Water Company and give an independent regulator tariff powers, with fines up to BD50,000 for breaches. The bill before Parliament repeals the 1996 Electricity and Water Law and the 2007 decree that formed the Authority.

The regulator, answerable to a minister named by decree, would license operators, set technical, health and safety standards, enforce the rules and approve tariffs and fees after Cabinet approval.

Existing operating units may keep working for a limited time under a transition plan set by the regulator.

Licences

Those already carrying out regulated work before the law takes effect may continue for six months, extendable once by the regulator, provided they apply for the required licences within that period.

Earlier laws would fall away, while present regulations would stay in force until new ones are issued under the draft.

The regulator would have its own budget tied to the state fiscal year, funded by general-budget allocations, service fees, accepted grants and donations, and administrative fines.

It must produce annual reports and strategic plans and consult interested parties before issuing rules or decisions with a direct effect.

Standards

General rules to be issued would cover incident reporting, retention of network maps and plans, compliance with approved technical standards and a ban on non-approved materials or devices.

Supply rules would aim to keep electricity and water regular, secure and efficient, protect the public from risk, set installation and connection terms and permit disconnection for non-payment or unsafe equipment.

They would also tackle unlawful use of services and press for careful consumption.

Electrical works would have to meet approved standards, with unlicensed setups barred and test certificates required from specialists.

Rules

Water works would be tied to rules on quality and potability, source monitoring, sample testing, publication of quality data, staff competence and the use of approved devices, with certificates of completion from qualified personnel.

The National Electricity and Water Company would take on the Authority’s tasks along with its own core duties.

It would consult the regulator on policy, create four business units for procurement, transmission, distribution and supply, lease land for assets and improve the use of resources.

It may offer energy-efficiency services and set up a central energy-services arm to accredit specialist firms for upgrades.

Permits

For independent power and water schemes, the company may partner with the private sector, lease state land and help secure permits.

The regulator may direct it to build new production if required capacity cannot be met by current suppliers.

A binding transition plan would move all assets, liabilities and rights from the Authority to the company, which would step into all contracts and dealings.

The Authority would then be dissolved, with staff moved to the company or another government body while keeping their employment rights.

Information

Penalties include up to six months in jail or fines up to BD50,000 for operating without a licence, breaching rules, giving misleading data or refusing to provide required information.

Fines up to BD500 would apply to anyone who hinders regulator staff or licensees, with the proceeds going to the regulator.

Government support would be set by the Cabinet on a proposal from the finance ministry and in coordination with the regulator.