MINISTERIAL DECISION NO. 230 OF 2016

EXECUTIVE REGULATIONS OF THE ELECTRICITY LAW

Issued Pursuant to Electricity Law No. 87 of 2015

Published in the Official Gazette, Issue 118 (Supplement), 23 May 2016 | Effective as of 24 May 2016

The Arabic official text is authoritative. This translation is prepared for reference purposes only.

PREAMBLE

Decision of the Minister of Electricity and Energy No. 230 of 2016, published on 23 May 2016 in the Egyptian Official Gazette, Issue 118 (Supplement), effective as of 24 May 2016.

Concerning: The issuance of the Executive Regulations of the Electricity Law promulgated by Law No. 87 of 2015.

Mohammed Shaker Al-Marqabi — Minister of Electricity and Renewable Energy

Having reviewed the Electricity Law promulgated by Law No. 87 of 2015; and upon the advice of the State Council;

Resolved:

ISSUANCE ARTICLES

Article 1 (Issuance)

The provisions of the attached Executive Regulations of the Electricity Law shall enter into effect.

Article 2 (Issuance)

This Decision shall be published in the Official Gazette and shall enter into force as of the day following the date of its publication.

CHAPTER ONE — DEFINITIONS

Article 1

For the purposes of these Regulations, the following terms and expressions shall have the meanings assigned to them below:

The Law: The Electricity Law promulgated by Law No. 87 of 2015.

The Ministry: The ministry responsible for electricity and renewable energy affairs.

The Competent Minister: The minister responsible for electricity and renewable energy affairs.

The Authority: The Electricity Regulatory and Consumer Protection Authority (ERCPA).

The Board: The Board of Directors of the Authority.

The Chief Executive Officer: The Chief Executive Officer of the Authority.

The Administrative Authority: The competent local administration units.

The Organization: The New and Renewable Energy Authority.

Electricity Utility Parties: All entities engaged in the production, transmission, operation of the transmission network, distribution, and sale of electricity.

Electricity Activities: Electricity services provided by legal persons, including production, transmission, or distribution of electricity.

Egyptian Electricity Holding Company: The company established pursuant to Law No. 164 of 2000 converting the Egyptian Electricity Authority into an Egyptian joint-stock company.

Extra-High Voltage: Voltages of 132 kilovolts (kV) or more.

High Voltage: Voltages from 33 kV to 66 kV.

Medium Voltage: Voltages above 1 kV and below 33 kV.

Low Voltage: Voltages up to 1 kV.

Transmission Network: Electrical networks interconnected at extra-high and high voltages.

Distribution Networks: Electrical networks interconnected at medium and low voltages.

Renewable Energies: Natural, inexhaustible forms of energy that can be used for electricity production.

Electricity Production Companies: Companies licensed to produce electricity from primary sources and sell it to the Network Operator, subscribers, or accredited distributors.

Electricity Distribution Companies: Companies licensed to distribute and sell electricity over medium and low voltage networks.

Permit: The document issued by the Authority to commence the construction or expansion of any electricity activity.

License: The document issued by the Authority to commence the operation of any electricity activity following the issuance of a permit.

Licensee: Any legal person holding a valid license issued by the Authority to carry out electricity production or distribution activities.

Permit Fee: The financial consideration paid by the permit applicant to the Authority for the issuance and annual renewal of the permit, as determined by the Board not to exceed the maximum prescribed by law.

License Fee: The financial consideration paid by the license applicant to the Authority for the issuance and annual renewal of the license, as determined by the Board not to exceed the maximum prescribed by law.

Network Operator: The Egyptian Electricity Transmission Company (EETC).

Market Operator: A unit with independent financial and administrative standing within the Egyptian Electricity Transmission Company, responsible for managing the competitive electricity market, organizing supply and demand bids, and conducting accounting and settlements in accordance with trading and settlement rules approved by the Authority.

Supplier: Electricity production companies or accredited distributors.

Public Supplier: A unit with independent financial and administrative standing within the Egyptian Electricity Transmission Company, responsible for the regulated market.

Accredited Distributor: Any legal person licensed to conclude purchase or sale transactions or provide services in the field of electricity on behalf of and for the account of producers, distributors, or subscribers.

Distribution Rules: The set of rules governing the distribution and delivery of electricity to subscribers in a safe and stable manner, as well as the connection of dispersed electricity generation units to the distribution network.

Electricity Transmission: The transmission of electricity over extra-high and high voltage networks.

Transmission Rules: The set of technical requirements, constraints, and metering and protection device specifications required for connection to the electricity transmission network, as well as the network operating rules, information models and data required from those connected to the transmission network, and the rules and bases for evaluating the performance of the electricity transmission system.

Consumer: Any natural or legal person who uses or benefits from electricity services.

Subscriber: A consumer who has contracted with one of the electricity utility parties.

Eligible Subscriber: A subscriber who has the right to freely choose their own electricity supplier.

Non-Eligible Subscriber: A subscriber who does not have the right to freely choose their own electricity supplier.

Tariff: The electricity sale prices approved by the Authority for non-eligible subscribers at all voltage levels and for all uses, in accordance with the general supply quality standards approved by the Authority and the conditions attached to such prices.

Price: The contractual financial consideration for electrical energy and its associated services within electricity market activities.

Competitive Electricity Market: A market based on free competition through which eligible subscribers may contract with production companies or accredited distributors via bilateral contracts to meet their electricity needs; it also encompasses balancing energy and ancillary services transactions.

Regulated Market: A market in which transactions between electricity utility parties and non-eligible subscribers take place in accordance with contract templates and tariffs approved by the Authority.

Dispute Resolution Committee: The committee competent to resolve disputes arising between electricity utility parties in connection with the operation and regularity of the utility.

Unfair Competition: Any act carried out by an electricity utility party that restricts, limits, or damages free competition.

Trading and Settlement Rules: The rules on the basis of which commercial transactions are conducted between electricity utility parties, as referred to in Article (33) of the Law.

Recovered Energy: The latent energy contained in waste in its various forms that can be reused to generate electricity.

Ancillary Services: Services purchased from electricity production companies that are required for the safe and stable operation of the transmission network, including energy needed to compensate for electrical losses, voltage regulation, reserve generation capacities, and others.

Balancing Energy: Electrical energy purchased through the Network Operator on behalf of any licensed producer or eligible subscriber to maintain the stability of the electricity transmission network.

Energy Source Certificate: A document issued by the Authority for every one megawatt-hour (MWh) to certify that the electrical energy is generated from a renewable source, for the purpose of informing the end consumer of the source of the electrical energy; it is valid for twelve months and may be traded separately from the electricity generated from the renewable source.

Electricity Strategy: The strategy prepared by the Ministry and approved by the Council of Ministers, setting the objectives of the electricity sector and the appropriate means to achieve such objectives, ensuring sustainable development in the medium and long term.

Electricity Policy: The overall policies set by the Ministry for the electricity sector to implement the Electricity Strategy, including plans and programs related to the appropriate institutional framework, securing electricity supply, encouraging investment, research and development, efficiency improvement, competition protection, environmental preservation, and strengthening cooperation with other countries in the field of electricity.

Supply Rules: The set of rules governing the supply of electricity to subscribers, including rules for the exchange of electrical energy between the regulated market and the competitive market, or the transition from one energy supplier to another.

Competitive Electricity Market Design Document: The report prepared by the Authority in accordance with Article (65) of the Law and approved by the Council of Ministers, setting out the stages of the electricity market’s transition to competition, the expected duration of each stage, and the role of the Authority in monitoring and evaluating market performance to ensure fair competition and efficient market operation.

CHAPTER TWO — REGULATION OF ELECTRICITY UTILITIES

Section One — The Electricity Regulatory and Consumer Protection Authority

Article 2

The Electricity Regulatory and Consumer Protection Authority is an independent public authority with separate legal personality, independent of the electricity utility parties, with its principal headquarters in Cairo. The internal affairs of the Authority shall be governed by the internal regulations approved by the Board and issued by decision of the Competent Minister.

Article 3

In the exercise of its activities, the Authority may engage such specialized local or foreign experts as it deems appropriate, in accordance with the rules set out in the Authority’s Staff Affairs Regulations.

Article 4

The Board may form one or more committees from among its members and assign certain tasks to them. It may also delegate its Chairman or the Chief Executive Officer to exercise some of its powers for a specified period, in accordance with the circumstances as assessed by the Board.

Article 5

The Board is the authority responsible for managing the Authority’s affairs and shall exercise its powers in the manner set out in the Law and these Regulations. The Board shall be constituted for a term of three years, renewable once for a similar period. Entities with representatives on the Board may request the replacement of their representatives whenever necessity requires and in accordance with the same procedures prescribed by law; in such case, the new member shall serve the remaining term of their predecessor.

Article 6

If a member of the Board is absent from more than three consecutive sessions without excuse, the Chairman of the Board shall have the right to submit a memorandum to the Prime Minister requesting the member’s replacement after presentation to the Board; the new member shall serve the remaining term of their predecessor. In the event of a vacancy of one or more members, the Prime Minister shall appoint a replacement in accordance with the nomination procedures prescribed by law; the new member shall serve the remaining term of their predecessor.

Article 7

The Board may invite any persons it deems useful to attend its sessions without the right to vote. Members of the Board and persons invited to attend its sessions shall maintain the confidentiality of all data and information presented to the Board.

Article 8

The Authority shall, with the approval of the Board, determine the financial consideration for work, services, and activities performed by or on behalf of non-licensees that align with the Authority’s purposes.

Article 9

Within the framework of the rules issued by the Ministry of Finance, the Authority is entitled to invest its share of the annual surplus in savings accounts at the Central Bank or at banks approved by the Central Bank, or in government bonds. It may also use the balance of such surplus or its returns to purchase assets beneficial to the Authority, all subject to the approval of the Board.

Section Two — Tariffs

Article 10

The Authority shall establish the economic rules and bases for calculating the tariff, as well as the electricity exchange prices between utility parties in the regulated market, in addition to the charges for using the transmission network and distribution networks, within a framework of equality, fairness, and transparency. Such rules and bases shall be approved by the Council of Ministers following their adoption by the Board, and the Authority shall publish them on its website to inform all utility parties and subscribers.

Article 11

The Authority shall review and amend the rules and bases referred to in the preceding article in any of the following cases:

  1. If the Council of Ministers considers it necessary to review them.
  2. If the Authority considers it appropriate to reconsider them.
  3. If a utility party submits a substantiated request for review and the Board approves it.

Article 12

The Authority may hold public hearings at its premises or elsewhere to discuss the proposed economic rules and bases for calculating the tariff before their adoption by the Board, and to arrive at recommendations to be considered before submission to the Board. Such hearings shall be announced through appropriate means at least fifteen (15) days in advance, and the minutes of the hearings shall be recorded and published on the Authority’s website to ensure transparency.

Article 13

The Authority shall prepare the tariff study in accordance with the economic rules and bases approved by the Council of Ministers and announced by the Authority, taking into account the following:

  1. Advancing the electricity tariff to cover actual costs.
  2. Achieving financial balance for electricity companies to ensure their continued operation.
  3. Promoting the principles of fairness and equality among non-eligible subscribers.
  4. Incentivizing electricity companies to reduce costs, improve efficiency, and raise performance standards.
  5. Continuing to provide support to low-income segments of society.
  6. Encouraging energy conservation and the use of renewable energies.
  7. Ensuring transparency in tariff calculation rules and their application to non-eligible subscribers.

Article 14

The Board shall approve the tariff, which shall be issued by decision of the Competent Minister and published in the Official Gazette and on the Authority’s website.

Article 15

The Authority shall prepare the study on proposed electricity exchange prices in the regulated market, as well as the charges for using the transmission network and distribution networks, in accordance with the economic rules and bases approved by the Council of Ministers and announced by the Authority. The exchange prices and usage charges shall be approved by the Board and published in the Official Gazette and on the Authority’s website.

Article 16

The Authority shall monitor and oversee electricity utility parties’ compliance with the approved tariff, electricity exchange prices, and transmission and distribution network usage charges. If any party is found to be non-compliant, the Authority shall apply the provisions of the Law and these Regulations after presentation to the Board.

Article 17

Having regard to the provisions of Article (41) of the Law, if the Council of Ministers sets a tariff lower than the prescribed tariff, the State shall be obligated to pay the value of the difference between the two tariffs annually to licensees through the Public Supplier, as follows:

  1. Tallying the quantities of electricity sold by licensees to their subscribers at the end of each financial year.
  2. Calculating the difference between the prescribed tariff and the tariff set by the Council of Ministers.
  3. Calculating the value of the quantities of electricity sold by licensees to subscribers and settling this value with the Ministry of Finance annually.
  4. Depositing the value of the difference between the two tariffs in a separate account.
  5. Using the value of the difference between the two tariffs to compensate licensees in proportion to the burden borne by each as a result of selling electricity at the lower tariff.

Article 18

The tariff and electricity exchange prices in force on the date these Regulations take effect shall remain applicable until a new tariff and new electricity exchange prices are approved in accordance with the Law and these Regulations.

Section Three — Permits and Licenses for Electricity Activities

Article 19

The general licensing requirements approved by the Board shall establish the rules and procedures for obtaining permits and licenses to carry out any of the activities of electricity production, distribution, or sale.

Article 20

The Authority shall issue a single license to each company for the licensed activity, even where projects or geographic areas covered by the activity are multiple. A company applying for a license for the first time must first obtain a permit before obtaining the license, and must also obtain the necessary permits for any new projects or geographic areas to which it intends to extend its activity.

Article 21

A producer of electricity for own use may be exempted from obtaining permits or licenses upon satisfaction of all of the following conditions:

  1. The production station must be wholly owned by the same legal entity that uses the electricity produced by the station.
  2. The production station must not be connected synchronously to the transmission or distribution electrical network at a capacity exceeding five hundred (500) kilowatts; or the station is connected or not connected synchronously to the network at a capacity of up to five hundred (500) kilowatts.
  3. The electricity producer must not be party to any contracts or agreements for the supply of electricity from the production station to third parties.

The exemption shall be granted upon application submitted by the producer to the Authority. The Authority shall have the right to verify documents and conduct on-site inspection to ascertain the applicant’s eligibility. If the applicant is found not to satisfy any of the exemption conditions, the application shall be rejected by a reasoned decision of the Board.

The producer is required to notify the Authority within ten (10) working days upon the lapse of any condition qualifying it to continue benefiting from the granted exemption, in order to obtain the necessary permit or license.

Article 22

No permit to establish a distribution network may be granted to any company within the geographic area of a network belonging to another company holding a valid permit or license in that area.

Article 23

Applications for permits shall be submitted on forms prepared by the Authority, containing the data and information required for consideration of such applications. The following documents shall be attached:

  1. Investment profile indicating the company’s activity or articles of incorporation.
  2. Commercial registration certificate.
  3. Tax card.
  4. Preliminary feasibility study of the project.
  5. Title deed or right to use the land on which the project is to be built.
  6. Approval of the licensed distribution company or the Egyptian Electricity Transmission Company for connection to the network.
  7. Technical study for connection with the distribution company or the Egyptian Electricity Transmission Company.
  8. Study of the expected number of subscribers to whom electricity will be supplied, together with preliminary agreements with such subscribers.
  9. Undertaking to obtain the special permits and approvals issued by the competent authorities for the project’s construction works.
  10. Receipt of payment of the permit fees.

Article 24

A permit shall be issued for a period of one (1) year and renewed for similar periods upon submission by the permit holder of a renewal application within fifteen (15) days of the permit’s expiry date, on the form prepared by the Authority containing all required data and information, and attaching the following documents:

  1. Declaration confirming the continued validity of all documents submitted at the time of the permit application.
  2. Report on work completed during the preceding year, indicating the percentage of completion of each phase of the previously submitted implementation schedule.
  3. Report on the reasons for delay in completing each phase.
  4. Receipt of payment of the permit renewal fees.

If the Board considers that the permit holder has not demonstrated genuine commitment to fulfilling the permit requirements, it shall have the right to refuse renewal.

Article 25

Applications for licenses to carry out production or distribution activities, or for the renewal of such licenses, shall be submitted on the forms prepared by the Authority for each activity, containing the required data and information. The following documents shall be attached:

  1. Investment profile of the company indicating its activity or articles of incorporation.
  2. Commercial registration certificate.
  3. Tax card.
  4. Copy of the permit issued by the Authority.
  5. Final feasibility study of the project.
  6. Construction licenses issued by the competent authorities.
  7. Management and operation agreement between the project owner and the company engaged for management and operation, if any.
  8. Grid connection agreement, electricity supply agreement, or network usage agreement, as applicable, between the license applicant and the licensed distribution company or the Egyptian Electricity Transmission Company.
  9. Template subscriber agreement, and signed connection, supply, and network usage agreements with other licensees.
  10. Organizational structure of the company and functional responsibilities of the structure’s departments.
  11. Approved financial statements and approved budget (for multi-purpose companies, indicating the accounting system used).
  12. Receipt of payment of the license fees.

Article 26

An applicant for a license to carry out production activities, or for its renewal, shall in addition to the documents specified in the preceding article attach the following:

  1. Title deed or right to use the production station.
  2. Basic technical specifications of the production station.
  3. Schematic and line diagrams of the production station, certified by the Syndicate of Engineers.
  4. Performance and operational indicators of the production station.
  5. Track record in production activities, if any.
  6. Approval of the Environmental Affairs Agency of the environmental impact assessment study.
  7. Study on the cost of production, sale prices, and expected production capacity.

An applicant for a license to carry out distribution activities, or for its renewal, shall in addition to the documents specified in the preceding article attach the following:

  1. Title deed or right to use the electricity distribution network.
  2. Basic technical specifications of the electricity distribution network.
  3. Schematic and line diagrams of the electricity distribution network, certified by the Syndicate of Engineers.
  4. Performance and operational indicators of the electricity distribution network.
  5. Track record in distribution activities, if any.
  6. Study on the cost of distribution, sale prices, and expected distribution capacity.
  7. Timetable specifying the duration for delivering services to subscribers.

Article 27

The Board shall determine the fees payable for the granting and renewal of permits, the granting and renewal of licenses, and the annual continuation of their validity, not exceeding the maximum value specified in Articles (15) and (17) of the Law.

Article 28

The Authority shall annually issue a certificate confirming the continuation of the license’s validity after verifying the licensee’s compliance with the licensing requirements during that year. This shall be done upon the licensee’s submission of an application on the form prepared by the Authority for each activity, containing the required data and information, and attaching the following:

First — For Production Activities:

  1. Financial position for the preceding year and approved financial statements.
  2. Statement of any amendments to the company’s basic data during the year.
  3. Basic data for calculating technical, financial, and commercial performance indicators of production units.
  4. Report on maintenance programs for production units that were implemented.
  5. Report on performance and operational indicators of production units.
  6. Report on technical, financial, and commercial performance indicators of production units.
  7. Statement of the quantity and value of fuel consumed by production units.
  8. Statement of the quantity of energy sold by production units, distributed by voltage level.
  9. Statement of the workforce distribution by job specialization.
  10. Heat rate and flow diagram for production units (not applicable to diesel units).
  11. Environmental data.
  12. Report on periodic and preventive maintenance work carried out on production unit equipment.
  13. Report on replacement and renovation work carried out on production unit equipment.

Second — For Distribution Activities:

  1. Financial position for the preceding year and approved financial statements, or for the distribution activity if the company has multiple activities.
  2. Statement of the quantity and value of electrical energy sold and the value of the maximum recorded load for each subscriber for the preceding year.
  3. Statement of the quantity of energy purchased in the preceding year and the expected quantity to be purchased for the following year.
  4. Statement of the workforce distribution by job specialization.
  5. Statement of the components of the licensed distribution network and expansion, replacement, and renovation projects implemented.
  6. Report on maintenance programs for network components implemented during the year.
  7. Report on measures taken to improve the quality of electricity supply during the year.
  8. Report on technical, financial, and commercial performance indicators of the distribution network.
  9. Report on measures taken to improve service quality.
  10. Report on implementation of the annual plan for energy efficiency improvement programs and the use of renewable energy.
  11. Statement of the number of contracted subscribers, distributed by purpose of use.

Procedures for obtaining the license continuation certificate shall commence immediately upon the expiry of the licensee’s financial year. The licensee shall submit all technical, financial, and documentary data required to complete the license continuation certificate procedures, as set out in the general licensing requirements, no later than four (4) months from the end of the licensee’s financial year. Failure to comply with this deadline shall result in an increase in the license continuation fees of one percent (1%) of the value of such fees for each month of delay or part thereof, subject to not exceeding the maximum fee amount specified in the Law.

Article 29

A permit or license holder may request the transfer of the permit or license issued to it to a third party, by submitting an application on the form approved by the Authority containing all detailed data and information. The application shall include the same documents referred to in Articles (23) and (25) of these Regulations, as applicable, relating to the transferee, as well as any permit or license previously issued to the transferee by the Authority. The Authority shall have the right to request any additional relevant data or documents while considering the transfer application.

Article 30

The Authority shall consider the transfer application within sixty (60) days from the date of receipt of all required data and documents. The matter shall be presented to the Board for its decision, which must be reasoned. Such decisions shall be final. This shall also apply to all cases of merger of two or more licensees, whether by purchase or other forms of merger, or the annexation of part of a network.

Section Four — Suspension or Cancellation of Licenses

Article 31

In the event that a licensee commits a violation that infringes the provisions of the Law, these Regulations, or the licensing requirements, the Authority shall notify the licensee in writing to remedy the violation within a specified period. If the licensee fails to comply, the Authority shall apply the sanctions prescribed by the Law in proportion to the gravity of the violation. The warning, removal order, suspension, or cancellation must be issued by a reasoned decision of the Board upon expiry of the period specified in the notice, and the licensee shall be notified thereof in writing. In all cases, care shall be taken to avoid exposing the interests of other licensees or consumers to harm.

Article 32

The Board shall establish a system identifying the cases of licensees’ non-compliance with the Law, these Regulations, or the licensing requirements, as well as the sanctions to be imposed on the licensee, the procedures for implementing such sanctions, and the mechanism for filing complaints against them, without prejudice to the special conditions governing activities regulated by other laws or private contracts.

Article 33

In the event of suspension or cancellation of a license, the Authority may appoint one of the licensees engaged in the same activity to temporarily manage the suspended or cancelled activity in order to safeguard the interests of subscribers. The appointed entity shall be responsible for managing the activity and complying with the licensing requirements. The Authority shall regulate the relationship between the suspended or cancelled licensee and the appointed manager in accordance with the rules and procedures approved by the Board. The appointed manager shall be required to notify all affected subscribers of the suspension or cancellation decision.

Article 34

In the event of the suspension or cancellation of its license, the licensee shall provide the temporarily appointed manager with all records, registers, and data, and shall enable it to manage the assets it owns that are necessary for the continuation of the suspended or cancelled activity. The appointed manager shall in such case be entitled to exercise all rights and assume all obligations set out in the license, in addition to any instructions issued by the Authority in this regard.

Section Five — Dispute Resolution Committee

Article 35

As amended by Article 1 of Ministerial Decision No. 95 of 2022, published on 25 May 2022 in the Official Gazette, Issue 116, effective as of 26 May 2022.

A committee shall be formed within the Authority, competent to hear disputes arising between electricity utility parties in connection with the operation and regularity of the utility. The committee shall be chaired by a member of a judicial body not below the rank of Vice-President of the Court of Cassation or equivalent, and shall comprise technical, financial, commercial, and legal cadres with a total odd number of not fewer than five (5) members. The committee shall be constituted by a decision of the Chairman of the Board for a period of one year, renewable for similar periods. The committee may seek the assistance of persons from within or outside the Authority to participate in its work without a deliberative vote.

Original text before amendment: The committee was chaired by a Vice-President of the State Council; the remaining provisions were identical.

Article 36

The committee shall have a technical secretariat headed by the committee rapporteur and comprising a sufficient number of members, to be constituted by decision of the Chief Executive Officer. The technical secretariat shall be responsible for the following:

  1. Receiving dispute resolution requests and preparing a detailed report covering a narrative of the facts and legal issues raised by the dispute.
  2. Notifying the parties to the dispute of applications, sessions, and all other proceedings required for consideration of the dispute, and of decisions issued by the committee.
  3. Recording session proceedings in dedicated minutes.
  4. Maintaining a register for recording dispute resolution requests, their subjects, and the decisions issued in connection therewith.
  5. Such other tasks as may be assigned by the committee chair.

Article 37

The committee shall perform its work in accordance with the following rules and procedures:

  1. The committee shall convene at the Authority’s premises.
  2. Dispute resolution requests shall be submitted free of charge.
  3. A request to refer the dispute to the committee shall be submitted in the name of the Chief Executive Officer, by filing the request with the committee’s technical secretariat. The request must include in particular the following data and documents: (a) Names, capacities, addresses, telephone numbers, email addresses (if any), and fax numbers of the parties to the dispute. (b) Name of the legal representative of the applicant. (c) Copy of the contract, agreement, or legal instrument pertaining to the subject of the dispute. (d) Statement of the facts supporting the subject of the request. (e) Documents supporting the applicant’s position.
  4. The technical secretariat shall prepare a detailed memorandum on the subject of the dispute for presentation to the committee. The committee chair shall set a hearing date to be notified to the parties within two (2) weeks of submission. If the respondent fails to appear following notification, the committee shall resolve the dispute based on available documents. If the applicant fails to appear, the application shall be archived and the respondent notified accordingly.
  5. Each party to the dispute, or their representative, shall have the right to appear before the committee to present their defense.
  6. For the purpose of resolving the dispute, the committee may: (a) Hold a meeting with the parties to the dispute, or their legal representatives, jointly or separately; the committee rapporteur shall record the discussions in minutes prepared for that purpose. (b) Request any papers, documents, or memoranda from the parties to the dispute. (c) Seek the assistance of specialized experts in technical matters to provide a technical opinion on the subject of the dispute; the parties shall bear the costs as determined by the committee and shall be required to deposit the specified amount in advance.
  7. The committee shall issue its decisions on disputes, with a brief reference to the reasons for the decision, within no more than sixty (60) days from the date of submission of the application supported by documents. Decisions shall be presented to the Board for approval, and the parties shall be notified.
  8. The committee’s sessions, discussions, and minutes shall be confidential, except where the competent court requests that such minutes be annexed to a case pending before it relating to the subject of the dispute.

Article 38

Third parties who are electricity utility parties may request to intervene in the dispute before the committee prior to the issuance of the committee’s decision, if the committee determines that their interest is connected to the dispute, provided that the remaining parties to the dispute are notified accordingly.

Article 39

The committee’s decisions shall be issued by majority vote. The decision shall indicate whether it was issued unanimously or by majority, and the reasons for any dissent shall be recorded in the committee’s minutes.

Article 40

The Board shall determine the remuneration of the chair and members of the committee and its technical secretariat.

CHAPTER THREE — ELECTRICITY ACTIVITIES

Section One — Electricity Transmission and Network Operation

Article 41

The Egyptian Electricity Transmission Company (EETC) shall be solely responsible for the activity of electricity transmission and operation of the transmission network. The company shall exercise its powers based on the following principles:

  1. Applying the principle of transparency in dealings with utility parties and subscribers.
  2. Making information and data available to utility parties and subscribers through appropriate means, without prejudice to information and data confidentiality rules.
  3. Non-discrimination between electricity utility parties or subscribers.
  4. Notifying subscribers and electricity utility parties of any change or amendment to the transmission rules, trading and settlement rules approved by the Authority, and service prices, in accordance with the regulatory procedures and with sufficient advance notice before they take effect.
  5. Compliance with the technical quality standards set out in the transmission rules approved by the Authority.

Article 42

The Egyptian Electricity Transmission Company shall prepare a plan for the financial and administrative restructuring of the company, implement a governance system, and upgrade the transmission network to meet the requirements for establishing a competitive electricity market. The plan shall be approved by the company’s General Assembly, in light of the electricity market development study and the report on the stages of opening the market to competition, within the transitional period specified in the Law.

Article 43

The Egyptian Electricity Transmission Company shall manage its assets to maximize their utilization, implement maintenance, replacement, renovation, and repair plans, expand the network to meet load increases, take measures to protect network components from tampering and third-party interference, periodically review protection, monitoring, and control systems to protect network components, and operate in accordance with economic and environmental standards while maintaining network reliability and the interests of electricity producers and consumers, all in accordance with the transmission rules approved by the Authority.

Article 44

The Egyptian Electricity Transmission Company, through the Network Operator, shall purchase the energy required for ancillary services from licensed producers, in accordance with the stages, requirements, and procedures set out in the Competitive Electricity Market Design Document, contracts, transmission rules, and trading and settlement rules approved by the Authority.

Article 45

The Authority shall annually evaluate the technical, financial, economic, and administrative performance indicators of the Egyptian Electricity Transmission Company in accordance with the benchmark standards for electricity transmission service performance and the reliability and efficiency of the transmission network as set out in the transmission rules. The company shall be fully transparent in providing data and information requested by the Authority, on the forms prepared by the Authority in coordination with the company, within four (4) months of the end of the company’s financial year. The Authority may request additional or detailed data.

The Authority shall issue an annual report on the performance measurement and evaluation indicators of the company. The company shall respond to the report and address any shortcomings within the timeframe specified by the Authority in coordination with the company.

Article 46

In the event of the Egyptian Electricity Transmission Company’s non-compliance with its obligations under the Law, these Regulations, the agreements concluded with it, or the contracts concluded with electricity utility parties, the Authority may take the following measures:

  1. Notify the company of the violation and give it a deadline to remedy it in accordance with the procedures set out in the notice.
  2. Submit the matter to the Chairman of the company’s General Assembly.

Article 47

The Egyptian Electricity Transmission Company shall make its networks available without discrimination for electricity transmission on behalf of licensed producers, in accordance with the contract templates approved by the Authority and the charges approved by it.

Article 48

The Egyptian Electricity Transmission Company shall prepare an annual report on the measures it has taken to ensure non-discrimination and maintain the confidentiality of third-party information. The report shall include in particular the following elements:

  1. The conditions and controls established by the company to ensure non-discrimination between licensed electricity producers or subscribers in the construction of new transmission network projects, or in network expansion, replacement, and renovation.
  2. The rules and bases adopted for calculating the network usage charges so as to ensure non-discrimination between network users with similar circumstances.
  3. The conditions and controls established by the company for connection to the network, supply of electricity to subscribers therefrom, and calculation of connection and supply charges, ensuring non-discrimination between them.
  4. The considerations taken into account by the company when preparing standard contract templates for connection to, use of, and supply of electricity from the network without discrimination between electricity producers or network users.
  5. The rules and controls established by the company to maintain the confidentiality of third-party information and the means used to monitor compliance.

This report shall be presented to the Board of Directors for evaluation and approval through assessment of the results and impacts of the measures taken by the company to ensure non-discrimination and maintain the confidentiality of information, and consultation with utility parties and subscribers on the effectiveness of such measures.

Article 49

The Egyptian Electricity Transmission Company, in coordination with the Ministry, shall prepare a draft electricity production expansion plan covering five years, and an indicative plan for ten years. The first part of the plan shall contain technical, economic, and financial data and supporting information, and shall be presented in hearings open to the relevant stakeholders in coordination with the Authority to discuss the data presented. The second part of the plan shall be prepared in light of the outcome of the hearings and the agreed alternatives for the production expansion plan.

The second part of the plan shall cover the additional production capacity required from various energy sources, taking into account the various alternatives. The report shall be presented in further hearings in coordination with the Authority to arrive at appropriate recommendations before the draft plan is submitted to the Board of Directors. Completion of the draft plan shall occur at least one year before its scheduled effective date. The Competent Minister shall submit the draft production expansion plan together with the Authority’s recommendations to the Council of Ministers for approval.

Article 50

The Authority shall issue a guide for the preparation of the production expansion plan, in coordination with the Ministry, the Egyptian Electricity Holding Company, and the Egyptian Electricity Transmission Company. The guide shall cover in particular the data sets and technical, economic, financial, and environmental inputs required for the preparation of the plan, as well as the preliminary studies and working papers required to determine such inputs, a description of the computational model used and plan results, and the structure and contents of the draft production expansion plan and its annexes. The guide shall specify the requirements for the plan preparation procedures to ensure transparency and the participation of stakeholders, including their right to comment on input values and limits, agree on alternatives, and express views on results, as well as the criteria and procedures for evaluating and approving the plan by the Authority and by the Council of Ministers, the method of publishing and circulating the plan, and any amendments thereto.

Article 51

The Egyptian Electricity Transmission Company shall prepare a plan for the expansion of the capacity and extension of the transmission network in accordance with the standards set out in the transmission rules, for the purpose of: connecting new production stations; reinforcing the connection of existing stations when their capacity is increased; providing appropriate capacity and minimizing bottlenecks on the transmission network for use by licensed producers and suppliers; achieving the integration of renewable energy production stations with the network; providing connection points of sufficient capacity for licensed distributors and subscribers; developing and updating network metering, monitoring, management, and control systems; and operating in accordance with sound environmental standards. The transmission network expansion plan shall cover five years and be indicative for ten years, to be completed at least one year before its effective date, and shall be presented to the Board of Directors for approval.

Article 52

The Egyptian Electricity Transmission Company shall prepare the annual electricity supply security report referred to in Article (35) of the Law, covering follow-up on the implementation of the production expansion plan to ensure balance between production and consumption and the availability of adequate reserve capacity, taking into account available, permitted, and licensed capacities and the timetables for their entry into the production phase, as well as planned capacities in accordance with the investment plans of licensed producers. The report shall also cover the integration between the production expansion plan and the transmission network expansion plan to verify the feasibility of utilizing such capacities. The report shall include in particular:

  1. What has been implemented from the production expansion plan and the transmission network expansion plan to utilize available production capacities.
  2. Availability, reliability, and efficiency indicators for existing capacities to verify their utilization levels.
  3. The balance between production and consumption for various purposes.
  4. The inputs used in preparing the production expansion plan and verification of their consistency with current developments.
  5. Rates of growth in electricity demand compared to the production expansion plan.
  6. Analysis of the reasons for any deviation from the plan.
  7. Required corrective measures.

The report shall be presented to the Board of Directors for evaluation through comparison with approved plans and target performance indicators. The Competent Minister shall submit the results of this report, including his recommendations, to the Council of Ministers. In the event of an actual or anticipated deficit, necessary measures may be taken, including: incentivizing investment in electricity production; amending the production expansion plan to address the deficit; requesting state-owned electricity production companies to add production capacities with the necessary financing; or authorizing the transmission company to contract with investors to add new production capacities and issue the necessary government guarantees from the Ministry of Finance, the Central Bank, or both.

Article 53

The Egyptian Electricity Transmission Company shall publish information and data related to its activities that can be of technical, commercial, and investment benefit to electricity utility parties, through the company’s annual report, specialized reports, and periodic bulletins. The company shall publish and make this information available electronically through its website in Arabic and English, and also in printed form. The company shall establish a single window to make information and data available regarding current and future electricity sector plans and programs for investors, production companies, financing bodies, licensed distributors, and eligible and non-eligible subscribers, without prejudice to legislation and rules governing data and accounts confidentiality.

Section Two — Electricity Distribution

Article 54

The licensed distributor shall exercise the powers specified in the Law based on the following principles:

  1. Applying the principles of full transparency, neutrality, and non-discrimination in dealings with utility parties and subscribers.
  2. Refraining from any action that would place the licensed distributor in a monopolistic position.
  3. Making all information available to users of the licensed distributor’s services on its official website free of charge upon request.
  4. Complying with service quality standards in accordance with the quality rules and standards contained in the distribution rules approved by the Authority.
  5. Complying with all rules, procedures, and conditions contained in the license issued by the Authority.
  6. Complying with all decisions issued by the Board of Directors.

Article 55

A licensed distributor may not extend its network for the purpose of distributing electricity to any subscribers within the service area of existing and operating networks, or networks prepared for that purpose, belonging to another licensed distributor.

Any licensed distributor may supply a subscriber using the networks of another licensed distributor in exchange for payment of the network usage charge determined by the Authority.

The licensed distributor using another’s networks shall pay the network usage charge to the other licensee based on the quantity of electricity consumed by the subscriber. The other licensee shall notify the licensed distributor using its network of the subscriber’s monthly consumption. The other licensee may charge the subscriber the value of this usage in accordance with the electricity supply agreement concluded between them, payable together with the consumption invoice.

The subscriber shall have the right to choose the licensed distributor from whom they wish to receive electricity. No financial penalties or compensation may be imposed on a subscriber to allow their transfer from one licensed distributor to another in accordance with these rules.

Article 56

If a subscriber wishes to transfer from one licensed distributor to another, the subscriber shall notify the first licensee of their wish to terminate the contract and not to renew it, and shall specify a notice period of not less than one (1) month from the date of such notice, or the period specified in the contract, whichever is greater, for the adjustment of matters in accordance with the request while the contract remains in force.

Both the subscriber and the first licensee shall settle the outstanding financial accounts related to the signed contract between them by means of a written receipt. The first licensee shall, upon the subscriber’s full payment of all outstanding amounts, provide the subscriber with a written receipt thereof within the notice period.

In the event of a dispute over outstanding amounts, the Authority may authorize the subscriber to contract with another licensee pending final resolution of any disputed amounts, after obtaining the subscriber’s undertaking to pay any debt that the Authority determines to be due.

If the subscriber fails to pay the debt acknowledged by the Authority to be due, the other licensee shall collect such debt from the subscriber on behalf of the first licensee. If the subscriber refuses to pay, the supply contract shall be terminated and the electricity supply disconnected after issuing a warning by registered mail with acknowledgment of receipt.

Article 57

If the subscriber continues to contract with the first licensee for other services, the contractual relationship for such services shall continue. In such case, the first and second licensees may agree for the latter to collect the charges for such services on behalf of the first licensee from the subscribers.

The existing meter at the subscriber’s premises may be retained and a settlement between the two licensees agreed upon, or the first licensee may remove the meter and the second licensee install a new meter at the same contracted capacity as agreed between the subscriber and the first licensee. Meter readings shall be recorded on the consumption invoice.

Article 58

If a subscriber who has transferred to another licensee wishes to increase the contracted capacity, the subscriber shall submit a request to the first licensee to amend the contracted capacity and shall bear the costs of such increase in accordance with the rules approved by the Authority. The first licensee shall respond to this request within the limits of its network capacity.

Section Three — Electricity Subscribers

Article 59

The Authority shall establish the supply rules in coordination with the Egyptian Electricity Transmission Company, the Egyptian Electricity Holding Company, licensed distributors, and representatives of eligible and non-eligible subscribers. Such rules and any amendments thereto shall only take effect after approval by the Board of Directors and publication in the Official Gazette. The rules shall include in particular:

  1. Rules for classifying subscribers in accordance with the conditions set by the Board of Directors.
  2. Rights and obligations of eligible subscribers in the competitive electricity market.
  3. Obligations of the Public Supplier in the regulated electricity market toward providing temporary electricity supply contracts for eligible subscribers in the event they are unable to contract with producers or suppliers in the competitive electricity market.
  4. Rights and obligations of non-eligible subscribers in the regulated electricity market.
  5. Rules for meter reading, accounting, invoicing, and collection for non-eligible subscribers.
  6. Minimum requirements to be met in electricity supply contracts for non-eligible subscribers.
  7. Procedures for handling, registering, and resolving consumer complaints.
  8. Cases of breach of contract conditions and the procedures followed in such cases.
  9. Identification of low-income subscribers and remote areas, and procedures for providing and protecting services for them.

Article 60

The Authority, in coordination with the relevant parties, shall organize its relationship with the consumer community through an appropriate organizational form of representation, so as to facilitate consumer protection tasks, improve the efficiency of the complaint system, handle complaints, exchange views, work together to improve service quality, and cooperate in resolving emergencies. The Board of Directors shall establish the governing rules and mechanisms for this purpose.

CHAPTER FOUR — IMPROVING ENERGY USE EFFICIENCY

Article 61

The Network Operator or a licensed electricity distributor may, in accordance with contracts approved by the Authority, contract with subscribers or accredited distributors for the reduction or shifting of their loads during peak periods, for the purpose of demand management aimed at reducing peak network load during such periods, improving the load factor of production units and networks, and reducing dependence on less efficient production units, while ensuring non-discrimination between them.

Article 62

Load reduction or shifting during peak periods shall be contracted for in the following cases:

  1. Shifting subscriber loads to off-peak periods.
  2. Coordinating periodic maintenance work to coincide with peak periods.
  3. Coordinating annual maintenance work to be carried out during peak periods.
  4. Using electricity production units owned by the subscriber during peak periods.

Article 63

The following controls shall be observed when concluding load reduction or shifting contracts:

  1. Mutual consent and agreement of all parties.
  2. The commercial nature of such contracts.
  3. Specification of the contract duration, number of reduction instances per year, and hours per instance.
  4. Direct contracting or contracting through accredited suppliers.
  5. Contracting based on prices approved by the Authority, or through public or limited tenders.

Article 64

A subscriber whose contracted capacity exceeds five hundred (500) kilowatts shall appoint an energy efficiency officer at the facility. Where the contracted capacity exceeds ten (10) megawatts, this officer shall carry out the following tasks:

  1. Completing energy register data and updating it periodically.
  2. Monitoring energy consumption at the facility and making proposals to improve efficiency of use.
  3. Conducting technical and economic feasibility studies for energy efficiency improvement applications.
  4. Following up on contracting procedures for energy efficiency improvement projects at the facility.
  5. Preparing annual calculations of energy performance indicators.
  6. Raising awareness among and training facility staff on energy efficiency improvement procedures.
  7. Carrying out measurement and verification work for energy efficiency improvement projects.

Article 65

The energy register shall contain all data and information related to energy at the facility, and in particular the following data regarding electrical energy:

  1. Electrical load measurements at the facility, distributed between lighting and motive power.
  2. A statement of electrical appliances and equipment at the facility and the electrical capacity of each.
  3. Average daily operating hours per month for each appliance, piece of equipment, or lighting fixture.
  4. A monthly statement of electrical energy consumed, distributed between lighting and motive power.
  5. A monthly statement of the quantity of electrical energy conserved.
  6. A statement of the categories of appliances, equipment, and lighting fixtures used at the facility in accordance with the energy efficiency label.
  7. A statement of sources of electricity supply (conventional energy / renewable energy) and the proportion of each.
  8. A monthly statement of training programs conducted in the field of energy conservation.
  9. A statement of studies and research conducted at the facility to support energy efficiency technologies.
  10. A statement of the facility’s energy conservation plan.

Article 66

The energy register shall be subject to oversight and monitoring by the entity designated by the Council of Ministers through the following procedures:

  1. Establishing an electronic register through which each subscriber with a contracted capacity exceeding ten (10) megawatts records the facility’s energy data.
  2. Maintaining both an electronic copy and a printed copy of the energy register, certified by the energy manager.
  3. Preparing reports containing measurement standards and performance indicators for energy efficiency improvement.
  4. Verifying the accuracy of the energy register data.

Article 67

Oversight of the energy register at facilities shall be as follows:

First — Internal Oversight:

Carried out through the facility’s technical inspection department, which shall undertake the following procedures:

  1. Periodic inspection of the energy register and its data, and verification that it has been updated.
  2. Review of the results of training programs in the field of energy conservation and comparison with the data recorded in the register.
  3. Review of electricity conservation indicators and the financial returns arising from improvements in such indicators.

Second — External Oversight:

Carried out by the Egyptian Organization for Standardization and Quality using the same procedures and mechanisms as internal oversight.

Article 68

The entity designated by the Council of Ministers, in cooperation with the relevant authorities, shall develop policies aimed at:

  1. Expanding the application of energy efficiency standards and labels to electricity-consuming appliances and equipment.
  2. Replacing low-efficiency appliances and equipment.
  3. Improving energy use efficiency in industrial and commercial systems.

Article 69

Low-energy-efficiency appliances, equipment, and lighting fixtures at facilities shall be replaced in accordance with the following procedures:

  1. Inventorying low-energy-efficiency appliances, equipment, and lighting fixtures and drawing up a timetable for their replacement.
  2. Ensuring that the specification of the energy efficiency category is included in the terms and specifications for the purchase of replacement appliances, equipment, and lighting fixtures.
  3. Preparing technical and economic feasibility studies for the replacement of low-energy-efficiency appliances, equipment, and lighting fixtures.
  4. Preparing unified standard technical specifications for each appliance or piece of equipment meeting high energy efficiency specifications.

Article 70

Producers and importers of electricity-consuming appliances and equipment shall affix energy efficiency labels in a prominent position on the appliances and equipment, in the same form, dimensions, and colors as the labels attached to the approved Egyptian standard specifications.

Article 71

The energy efficiency label shall indicate the level of electricity consumption of each appliance and piece of equipment through specific grades shown on the label, starting from the highest to the lowest grade.

Article 72

Producers and importers shall refer to the Egyptian Organization for Standardization and Quality to verify the energy efficiency label data in order to confirm the electricity consumption level of appliances and equipment before placing them on the market.

CHAPTER FIVE — ELECTRICITY UTILITY INFRASTRUCTURE

Article 73

For the purposes of these Regulations, electricity utility infrastructure shall mean:

  1. Electric power generation stations from their various sources and their ancillary facilities.
  2. Main transformer substations at extra-high and high voltages.
  3. Overhead lines and underground and submarine cables at extra-high voltages.
  4. Overhead lines and underground and submarine cables at high voltages.
  5. Overhead lines and underground and submarine cables at medium voltages.
  6. Overhead lines and underground and submarine cables at low voltages.
  7. Medium-voltage network distributors.
  8. Transformers and equipment for low-voltage distribution networks.
  9. Facilities belonging to production, transmission, and distribution companies.
  10. Related laboratories and research centers.

Article 74

The owner or occupier of a property may submit a written objection to the Authority against the installation, operation, or maintenance of the permitted networks or cables, subject to the following:

  1. The objection must be submitted within fifteen (15) days of the date of notification by the competent authority by registered mail with acknowledgment of receipt.
  2. The Authority shall rule on the objection within fifteen (15) days of the date of its submission, through a committee formed within the Authority for this purpose by decision of the Chief Executive Officer. The committee shall comprise technical, financial, and legal cadres and may seek the assistance of persons from outside the Authority.
  3. The committee’s recommendations — whether to accept or reject the objection — shall be submitted to the Chief Executive Officer for a decision.
  4. If the objection is accepted, the objecting party and the relevant company shall be notified to explore possible alternatives.
  5. If the objection is rejected, the objecting party and the relevant company shall be notified accordingly, and the networks or cables may not be installed, operated, or maintained except by a decision issued by the Competent Minister that includes a description of the works to be carried out, a detailed statement of the property on which the works are to be executed, and the start date of execution. The decision shall be accompanied by the following: (a) A list of the names, titles, and addresses of the owners and rights-holders in the property, as compiled by the relevant administrative authority. (b) Engineering drawings of the works to be carried out.

Article 75

The ministerial decision referred to in the preceding article and its annexes shall be published in the Official Gazette. Owners and rights-holders and the relevant administrative authority responsible for implementation shall be notified thereof. The decision and its annexes shall be deposited with the competent Real Estate Registration Office, published on the Authority’s website, and posted on the notice board at the governorate, the local unit, and the court within whose jurisdiction the property is located.

The Egyptian Electricity Transmission Company, or the licensed distributor, as the case may be, shall bear the costs of publication and deposit. Such publication and deposit shall produce all the legal effects associated with the registration of a contract creating a real right according to its type.

Article 76

If a property owner wishes to carry out any changes or modifications to the property that would affect any electricity utility infrastructure, the owner shall notify the Authority of such changes or modifications at least three (3) months before commencing the works, by registered mail with acknowledgment of receipt. The Authority shall respond within fifteen (15) days of the date of such notification. Failure to respond within that period — whether with approval or rejection — shall be deemed approval to carry out the changes or modifications.

Article 77

If the Authority rejects the changes or modifications referred to in the preceding article and the owner insists on proceeding, the owner shall be warned by registered mail with acknowledgment of receipt to remove the violation within fifteen (15) days of the date of the notice. If the owner fails to comply, the Authority may initiate expropriation procedures for the property or the necessary portion thereof for public benefit, in accordance with the provisions of Law No. 10 of 1990 on the Expropriation of Real Estate for Public Benefit, and subject to the approval of the Board of Directors.

Article 78

It is prohibited for the owner or occupier of a property over which, or near which, extra-high, high, or medium voltage electrical lines pass, to erect any buildings on either side if the property is vacant land, or to raise the height of existing buildings if the property is already built upon, or to plant timber trees if the property is agricultural land, all within the distances specified in Article (55) of the Law.

The competent authorities responsible for issuing building permits shall not issue such permits without first verifying compliance with the distances specified in Article (55) of the Law, by means of a letter issued by the Egyptian Electricity Transmission Company or the licensed distributor, as the case may be. The Egyptian Electricity Transmission Company or the licensed distributor shall issue such letter upon request.

Article 79

In the event of non-compliance by owners or rights-holders with the provisions of Article (55) of the Law, the Egyptian Electricity Transmission Company, or the licensed distributor, as the case may be, shall notify the relevant administrative authority to warn the offending party to remove the violation at their own expense within fifteen (15) days of the date of the warning. If the offending party fails to comply, the administrative authority shall have the right to remove the violation through administrative action at the offending party’s expense.

Article 80

The owner or rights-holder of a property shall be required to trim or prune trees or remove any obstacles interfering with electricity utility infrastructure whose existence, movement, or falling may cause damage to such infrastructure, following written notification by the licensed distributor or the Egyptian Electricity Transmission Company.

The affected party shall be compensated for any resulting damage without the need to initiate land expropriation procedures for the land on which the trees stand or on which the buildings are erected.

Article 81

The competent local administration authorities are prohibited from issuing quarry operating licenses without observing the distances specified in Article (55) of the Law. The license must expressly stipulate that the licensee is bound by these distances, and failure to comply shall result in the revocation of the license.

Article 82

Owners of buildings, factories, or subdivided plots of land designated for construction shall be required to build rooms to be allocated for distribution transformers, distributors, or distribution panels required for medium-voltage networks, in accordance with the rules determined by the licensed distributor and approved by the Board of Directors, covering the conditions, specifications, and requirements governing such installations.

The competent building permit authorities shall not issue building permits unless the applicants provide evidence of compliance with the preceding paragraph, by means of a letter from the licensed distributor stating their position with respect to the allocation of distribution rooms for the property to be constructed, in accordance with the relevant specifications. The licensed distributor shall issue such letter upon request.

In all cases, owners of buildings, factories, or subdivided plots of land designated for construction shall have the right to fair compensation if third parties benefit from such distribution rooms.

Article 83

A committee shall be formed in each governorate by decision of the Governor, chaired by the President of the Governorate’s Local Council and comprising the following members:

  1. A representative of the Ministry of Housing in the Governorate’s Executive Council.
  2. A representative of the Ministry of Agriculture in the Governorate’s Executive Council.
  3. A representative of the Ministry of Electricity in the Governorate’s Executive Council.
  4. A representative of the Ministry of Finance in the Governorate’s Executive Council.
  5. A representative of the Egyptian Survey Authority.

This committee shall be responsible for assessing the value of compensation in the cases provided for in Articles (53), (55), and (60) of the Law. The committee may invite experts it deems appropriate to attend its meetings without a deliberative vote.

The value of compensation due to the affected party shall be assessed based on the documents available to the committee. The committee shall invite the owners and rights-holders to attend to agree on the compensation value, within a period not exceeding one (1) month from the date of submission of the compensation request, by registered mail with acknowledgment of receipt. The committee’s quorum shall require the presence of its chair and at least three (3) members. The committee shall issue its decision within one (1) month from the date of the first session, by majority vote of the members present; in the event of a tie, the chair’s vote shall be the casting vote.

Article 84

If agreement is reached on the amount of compensation, the licensed distributor or the Egyptian Electricity Transmission Company, as the case may be, shall pay the amount to the owners and rights-holders. A report shall be drawn up accordingly and deposited with the competent Real Estate Registration Office, and such deposit shall produce all the legal effects associated with the registration of a contract.

Article 85

In the event of failure to agree on the compensation amount, or failure of any of the owners or rights-holders to attend the sessions of the committee referred to in Article (83) of these Regulations despite being summoned, the licensed distributor or the Egyptian Electricity Transmission Company, as the case may be, shall deposit the compensation amount determined by the committee with the treasury of the primary court having jurisdiction over the property and notify the parties by registered mail with acknowledgment of receipt. Works shall commence immediately thereafter.

Article 86

Either disputing party may challenge the compensation amount before the competent court, from the date of notification by registered mail with acknowledgment of receipt.

CHAPTER SIX — TRANSITIONAL PERIOD AND THE COMPETITIVE ELECTRICITY MARKET

Article 87

The Authority shall prepare the Competitive Electricity Market Design Document, which shall include all stages of opening the electricity market to competition, the expected duration of each stage, the role of the Authority in periodically monitoring and evaluating market performance, the procedures required to ensure fair competition and efficient market operation, the investment costs required for each stage, and the criteria for transition from one stage to the next.

All of the above shall be designed to achieve the gradual opening of the market in stages that include the existence of a competitive market operating in parallel with the regulated market, such that licensees and consumers are progressively transferred from the regulated market to the competitive electricity market, in accordance with the stages, criteria, and procedures set out in the Competitive Electricity Market Design Document, the electricity market trading and settlement rules, and the supply rules — so as to maintain the reliability of the electricity system, develop procedures to improve efficiency and achieve free competition within the electricity market, and provide an attractive investment environment in the fields of electricity production, distribution, and sale.

Article 88

The Network Operator shall provide balancing energy to licensed producers operating in the competitive electricity market and to eligible subscribers. Financial settlements shall be carried out by the Market Operator, in accordance with the procedures and stages set out in the Competitive Electricity Market Design Document, the contracts, and the trading and settlement rules approved by the Authority.

Article 89

The Market Operator shall maintain a dedicated account for carrying out the financial settlement procedures related to the value of balancing energy between electricity producers, suppliers, and eligible subscribers, as the case may be. This account shall be used exclusively for this purpose, in accordance with the rules and procedures set out in the trading and settlement rules approved by the Authority.

Article 90

The Public Supplier shall be required to contract with eligible subscribers who have not contracted with any licensed producer or supplier in the competitive electricity market, through temporary contracts for a period of six (6) months. Such contracts shall not be renewed for further similar periods or parts thereof without the prior approval of the Authority, at a tariff proposed by the Egyptian Electricity Transmission Company and approved by the Authority.

Article 91

The Market Operator shall issue a daily bulletin on competitive electricity market activity, covering quantities of energy traded, price indicators, and any other information necessary for market participants. The company shall transmit this bulletin electronically to the Authority, market participants, and relevant entities, and shall post it on the competitive electricity market website and the website of the Egyptian Electricity Transmission Company. The Market Operator shall also issue weekly, monthly, quarterly, and annual reports on market activity. The Egyptian Electricity Transmission Company shall prepare draft report templates in cooperation with market participants and submit them to the Authority for approval.

Article 92

The Market Operator shall prepare an annual report on the performance of the competitive electricity market, covering in particular the problems, difficulties, violations, and other matters related to the management of this market. This report shall be submitted to the Board of Directors of the Authority for such action as it deems appropriate.

Article 93

The Authority shall supervise the competitive electricity market in cooperation with the Market Operator, in order to verify that market participants comply with the requirements of transparency and lawful free competition, that no transactions or procedures within the market conflict with the trading and settlement rules, and that no conditions in contracts concluded between market parties conflict with the requirements or freedom of eligible subscribers to choose their electricity suppliers. The Authority shall also verify that the Egyptian Electricity Transmission Company and licensed distributors fulfill their obligations toward market participants, in accordance with the trading and settlement rules approved by the Authority.

Article 94

The Public Supplier shall exercise the powers set out in sub-paragraphs (6), (7), and (8) of Article (31) of the Law, and shall maintain a dedicated account into which all amounts collected under those sub-paragraphs are deposited and which shall be used exclusively for that purpose. In all cases, the Public Supplier shall be independent from the Market Operator in its operations and powers.

Article 95

The Public Supplier, in coordination with the Egyptian Electricity Holding Company, shall carry out the financial settlements for the payment of amounts due to licensed producers and for electricity transmission, distribution, and sale services. The Public Supplier’s account shall not be used for any purpose other than this.

The Authority, in coordination with the Egyptian Electricity Transmission Company, shall establish the regulatory rules for the procedures and timelines of financial settlements, and shall verify the Public Supplier’s compliance with such rules. For this purpose, the Authority may request any data or information it deems necessary.

Reviewed by the Legislative Department of the State Council at its session held on 23 April 2016.

The Arabic official text is authoritative. This translation is prepared for reference purposes only.

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