Kingdom of Saudi Arabia

The Challenge

Saudi Arabia’s Electricity and Co-generation Regulatory Authority (ECRA) was to become a multi-sector regulator by taking on responsibility for regulating the Kingdom’s gas, water and district cooling sectors. ECRA wanted assistance incorporating the additional responsibilities into the organisation, including through the development of an Action Plan to systematically establish functions to manage these responsibilities. IPA provided a three-day Workshop to assist with these developments.

Our Solution

IPA helped ECRA explore and address its concerns, identifying the key issues likely to be faced by the organisation as it evolves and defining the roles to be played and relative responsibilities of market participants, the regulator and policy makers. IPA therefore facilitate a three-day Workshop, providing experts to cover the individual sectors and institutional and human resource development. Our Team was complemented by the addition of a senior member from a Regulator which had gone through a similar exercise of assuming responsibility for additional sectors. The discussions in and results of the Workshop were contained in a post-Workshop Report.

The topics covered by the Workshop included:

  • Issues associated with establishing a multi-sector regulator, including potential advantages and disadvantages;
  • Experience of CER, the Irish Regulator, in assuming responsibility for the gas and water sectors;
  • Current status of the gas and water sectors in the Kingdom, and the draft gas and water laws;
  • Specifics of regulation of the gas sector, the water sector and the district cooling sector;
  • Advantages and disadvantages of alternative organisational structures, including identification of a preferred future structure for ECRA; and

Steps to create an Action Plan for ECRA to assume responsibility for the new sectors.